For the three months that ended March 31, the company, which makes treated wood products for the railway, electrical, and telecommunications industries, posted an increase of 76.5 percent in net income at $15 million, or 94 cents per share, compared with $8.5 million, or 53 cents per share in the first quarter of 2011.

Total sales rose 21.7 percent to $158.8 million, from $130.5 million last year.

Analysts polled by Thomson Reuters had anticipated 73 cents per share in earnings on revenue of $154.2 million.

"Robust demand for Stella-Jones' core railway tie and utility pole products led to significant increases in sales and operating profitability in the first quarter of 2012," said president and CEO Brian McManus.

"This improved performance reflects the wider reach of our continental network and continued efficiency gains.

"More favourable weather in most regions of North America, compared with the same period last year, also allowed for a greater number of projects requiring our products to be carried out early in the year."

The company said its sales boost was largely attributed to strong demand for transmission poles related to orders for special projects, and to an increase in distribution pole sales stemming from regular maintenance projects.

Railway tie sales rose 25.4 percent to $96 million, reflecting tie sales of around $9.1 million from the operating facility acquired from Thompson Industries in December 2011, as well as solid market demand, the company said.

Sales of utility poles increased 21.9 percent to $43.5 million.

Meanwhile, Stella-Jones reported that industrial product sales remained stable at $15.2 million, as the contribution from the facility acquired from Thompson was offset by lower demand for marine applications in Canada.

Sales of residential lumber increased 31.2 percent to $4.2 million, primarily as a result of more favourable weather compared with last year.

Stella-Jones announced a quarterly dividend of 15 cents per common share, payable on June 29 to shareholders of record at the close of business on June 1.

Looking forward, the company said it expects demand for its core products to remain solid.

"Internally, we will benefit from new network synergies and efficiencies as we finalize the integration of the Thompson operating facility," said McManus.

"This will allow us to pursue additional opportunities with existing and new clients. In addition, a healthy cash flow and strong financial position allow us to study all opportunities for network expansion, such as the recently announced proposed acquisition of certain assets of Brisco Wood Preservers Ltd."

Shares of the company were up 2.97 percent Thursday afternoon, trading at $48.14.

Prosperity Minerals’ (LON:PMHL) proposed acquisition of a stake in Malaysian iron ore company All Wealthy Capital (AWC) has been delayed until the end of July.

PIHL, Prosperity’s majority shareholder has told it that a circular to independent shareholders will be delayed until June as work on the competent person’s and independent valuation reports is still ongoing.

“This means that completion, if it were to occur, is likely to be in late July,” Prosperity said.

Prosperity originally announced a deal to buy a 5 per cent interest in AWC for US$25 million (approximately £15.8 million) in February.

AWC is 80 per cent owned by Elite Force, which in turn is 100 per cent owned by Prosperity’s chairman and chief executive David Wong. He is AWC’s sole director.

AWC also owns a 70 per cent interest in the exclusive mining rights at two Malaysian iron ore mines. It also owns a processing plant in Malaysia adjacent to the mines.

In March, Prosperity’s independent directors said they wanted to see a satisfactory competent person’s report, a satisfactory independent valuation report and a satisfactory fairness and reasonableness opinion from nomad Daniel Stewart before approving the deal.

In New York, shares of the Los Angeles, California-based company fell 15.93 percent in premarket trading to $9.45 as of 8:11 am EDT.

For the three months that ended February 29, the home builder posted a net loss of $45.8 million, or $0.59 per share, compared to a net loss of $114.5 million, or $1.49 per share, in the same period last year.

Total revenues for the quarter increased over 29 percent to $254.6 million, from $196.9 million a year earlier.

Analysts polled by Thomson Reuters had expected a loss of $0.24 per share, on $337.72 million in revenues.

"Reflecting the improving trends in the economy, including recent job growth and higher consumer confidence, we are seeing signs that the overall housing market is stabilizing and beginning to recover," said president and CEO, Jeffrey Mezger.

"The pace of the recovery is uneven, however, with certain local markets showing greater strength and more normalized activity than other areas where a rebound will take longer to manifest.

"We expect that the housing market in general will gradually strengthen as the economy continues to advance. While we are encouraged by the recent positive economic and housing market trends, our operational and financial results for the first quarter were mixed.

"We ended the quarter with a higher backlog compared to a year ago, although our orders moderated. At the same time, we posted growth in our deliveries and revenues and reduced our net loss significantly from the prior year."

Homebuilding revenues increased 28 percent to $251.9 million, as the company delivered 21 percent more homes than it did a year ago - up to 1,150.

Home delivery growth during the quarter increased in the West Coast region, the Southwest region, and the Central region, rising 38 percent to 309 homes, eight percent to 170 homes, and 34 percent to 487 homes, respectively.

However, a 10 percent decline in Southeast home deliveries, to 184 homes, partially offset results.

Average selling prices rose 6.5 percent to $219,000, reflecting strong growth in the West Coast and Southwest markets, the company said.

Net orders declined eight percent during the quarter, to 1,197, as a 22 percent rise in orders in the Central region were offset by declines in the company's other three regions.

KB Home said its cancellation rate increased to 36 percent from 29 percent a year earlier. The company also reported an adjusted housing gross profit margin of 12.3 percent, compared to 13.4 percent a year earlier.

KB Home said it recorded a 30 percent increase in its backlog to 2,203 homes, representing $460.0 million in revenues.

"The strategic actions we implemented toward the end of last year, and plan to continue to emphasize this year, should have a more pronounced impact as the year unfolds," continued Mezger.

"We believe these steps, along with the benefits of working with our new preferred mortgage lender, Nationstar Mortgage, in the coming quarters will generate further momentum in our business and, when combined with a stronger housing environment, should enable us to achieve profitability later this year."

For the three months that ended December 31, the company, which makes treated wood products for the railway, electrical, and telecommunications industries, posted net earnings of $13.4 million, or $0.83 per share, up 26 percent from $10.7 million, or $0.67 per share, a year ago.

Total sales rose 11 percent to $145.5 million, from $133.1 million in the same period last year.

Analysts polled by Thomson Reuters had anticipated $0.72 per share, on $142.3 million in revenues.

"2011 marked Stella-Jones' eleventh year of uninterrupted growth in net income," said president and CEO, Brian McManus.

"These results reflect the successful execution of our operating strategy based on continental expansion and industry consolidation. Demand for our core railway tie and utility pole products remained solid throughout the year, as evidenced by double-digit sales growth excluding acquisitions and currency variations.

"More importantly, our continued focus on optimizing network efficiency and overall operations led to solid improvements in profitability."

The company said its sales boost was largely attributed to strong demand for its core products, including increased advanced deliveries of its railway ties, as well as a $1.7 million contribution from the operations of Thompson Industries, which it acquired in December 2011.

Railway tie sales rose over 19 percent to $74.4 million. Sales of utility poles increased four percent to $50.6 million, as the company reported higher sales of transmission poles.

Meanwhile, industrial product sales increased four percent to $20.6 million, offsetting a nine percent decline in residential lumber sales, to $2.0 million.

Stella-Jones said Friday its board of directors has modified its dividend policy. The company will now declare a quarterly dividend, as opposed to on a semi-annual basis.

The first $0.15 per share quarterly dividend will be payable on April 30, to shareholders on record as of April 2.

Looking forward, Stella-Jones said it continues to anticipate solid demand for its core products - mainly in rail and utility.

"Our short-term priority is to integrate the Thompson operations and benefit from greater market penetration, synergies and additional operating efficiencies from a larger network," McManus continued.

"Already well established as one of the largest North American providers of industrial treated wood products, Stella-Jones will continue to assess prospective business opportunities that create additional value for its shareholders."

For the full year fiscal 2011, the St. Laurent, Quebec-based company reported a 62 percent hike in net income, to $55.7 million, or $3.48 per share. Revenues rose 14 percent to $640.2 million.

In the 2011 calendar year, Stella-Jones' stock gained 21.66 percent.

Prosperity’s independent directors said they want to see a satisfactory competent person’s report, a satisfactory independent valuation report and a satisfactory fairness and reasonableness opinion from nomad Daniel Stewart before approving the deal.

The independent directors also said they need to be sure that the pro-forma net asset value of All Wealthy (AWC) is not materially less than US$500 million.

Prosperity Minerals’ parent company is Hong Kong-listed and the time needed to prepare a report for the HK authorities and hold an independent shareholders' meeting means completion is now likely to be in late May 2012, it said.

Prosperity originally announced it had agreed to buy a 5 per cent interest in AWC for US$25 million (approximately £15.8 million) in February.

AWC is 80 per cent owned by Elite Force, which in turn is 100 per cent owned by Prosperity’s chairman and chief executive David Wong. He is AWC’s sole director.

AWC owns a 70 per cent interest in the exclusive mining rights at two Malaysian iron ore mines.

It also owns a processing plant in Malaysia adjacent to the mines, which are currently under trial production with a future target production capacity of 3 million tonnes per annum.

The deal includes an option for Prosperity to buy 9.5 million tonnes of iron ore from AWC over a 10 year period at a discount to the prevailing market price.

The intention is to list AWC on the HK stock exchange within two years, but if this does not happen Prosperity can ask for its investment back.

The valuation of US$500 million placed was based largely on an investment of US$50 million for a 10 per cent stake in AWC by Nanjing Steel, one of the largest steel mill operators in China, Prosperity added.

Shares rose 4.5p to 79p.

Under its bankruptcy plan, ECD will sell its wholly-owned subsidiary, United Solar Ovonic (USO) LLC, and its stake in Ovonyx. Its other subsidiaries, Ovonic Battery Company Inc, and Solar Integrated Technologies, have also filed in bankruptcy court.

President and CEO, Julian Hawkins, commented: "We firmly believe there is a strong and sustainable commercial market for UNI-SOLAR products. USO's next-generation, 12% efficient, flexible PV products build upon 25 years of PV experience and enable highly competitive production costs with a fundamentally differentiated product.

"However, our current capital structure and legacy costs are preventing USO from making the investments necessary for the future of the business without restructuring through the bankruptcy process.

"The processes we initiated today will afford greater opportunity for ECD to maximize value for its stakeholders and conduct an orderly sale of USO to ensure it is viable and successful for the long-run."

United Solar, which will continue to operate during the sale process, manufactures flexible, lightweight thin-film photovoltaic (PV) products for use in commercial rooftop and building-integrated markets.

ECD said United Solar's Open Solar initiative has shown traction with new partnerships, resulting in an integrated roofing product with Marcegaglia in Italy, and consumer products like the SolarKindle cover for the Kindle e-reader.

The company has retained investment banking firm, Quarton Partners, to manage the sale process, which is expected to be completed within 90 days.

ECD has also sold its majority-owned subsidiary, Ovonic Battery Company Inc, the worldwide licensor of nickel-metal hydride rechargeable battery technology, to BASF Corp for $58 million in cash, before transaction fees, minority participations, working capital and other adjustments.

The company also intends to sell its 39 percent stake in the Ovonyx joint venture. Ovonyx holds patents in the commercialization of phase-change random access memory. Its licensees include Micron, Samsung, Hynix, and St Microelectronics, among others.

Solar Integrated Technologies, another of ECD's wholly-owned subsidiaries, has also filed for relief under Chapter 7 bankruptcy. Solar Integrated is an engineering, procurement, and construction management company with a focus on solar installations in the U.S. and Western Europe.

ECD's revenues for the three months that ended December 31 totaled about $20 million, as the company shipped some 11 megawatts. The company said it continued to operate at "unsustainable levels", resulting in substantial losses and a continued decline in cash balances.

As of 3:42 pm ET, ECD shares on the Nasdaq Exchange had plunged 80.3 percent to $0.288. In 2011, the company's stock had shed 95.61 percent.

For the three months that ended December 31, the homebuilder posted earnings of $27.8 million, or $0.09 per share, up from a $20.7 million loss, or $0.06 loss per share, a year ago.

Total revenues increased 15.5 percent to $885.6 million, from $767.0 million in the same period last year.

Analysts polled by Thomson Reuters had anticipated four cents per share in earnings, on $896.9 million in sales.

"We are off to a strong start in fiscal 2012," said chairman DonalD.R. Horton.

"We were profitable in our first quarter and are focused on being profitable each quarter and for the entire fiscal year.

"Our net sales orders, homes closed and sales order backlog all increased by double-digit percentages over the prior year quarter.

"We are looking forward to the spring selling season with cautious optimism. We are positioned for growth, and we remain committed to controlling our construction costs, SG&A and inventory levels while maintaining our strong balance sheet and liquidity."

Revenues from home sales increased 16.2 percent to $884.3 million in the first quarter, as the company closed, or completed, 4,118 homes - up 13.2 percent from the 3,637 homes it completed a year ago.

Net sales orders rose 12.8 percent to 3,794 homes, for a dollar value of $823.2 million.

Backlog at quarter-end rose 17.5 percent to 4,530 homes, for a dollar value of $975.0 million.

The rise in homes closed and home orders signals an improvement in the U.S. home market, which many blame for triggering the recession.

Many homebuilders, including D.R. Horton, Lennar (NYSE:LEN), and PulteGroup (NYSE:PHM), have reported improvements in recent quarters, and building permits rose to a one-year high in November.

Fort Worth, Texas-based D.R. Horton also declared a quarterly cash dividend of $0.0375 per share, payable on February 21.

In New York, Horton shares rose 2.69 percent in pre-market trading Friday to $14.50, as of 8:00 am EDT.

For the three months to December 31, the US paint manufacturer, whose products are sold under its namesake Sherwin-Williams brand, Dutch Boy, and Water Seal, among others,  reported net income of $14.55 million, or 14 cents per share, compared to $72.92 million, or 67 cents per share, a year earlier.

Excluding a 70-cents-a-share charge, t, earnings rose to 84 cents per share.

Net sales rose 9.2 percent to $2.07 billion in the fourth quarter, a result of selling price increases, acquisitions and higher paint sales volume in its global finishes and Latin America coatings groups.

On average, Wall Street analysts expected a slightly smaller profit of 83 cents per share, on lower revenue of $2.05 billion.

Net sales in the paint stores unit increased 13.5 percent to $1.13 billion in the quarter due primarily to selling price increases and improving domestic architectural paint sales volume across most segments.

The company said segment profit in the unit decreased by $1.4 million in the quarter, however, to $133.4 million - a result of higher raw material costs, and increases in selling, general and administrative expenses.

Consumer group net sales decreased 1.1 percent to $252.1 million in the quarter due primarily to the elimination of a portion of a paint program with a large retail customer, partially offset by selling price increases, Sherwin-Williams said. Profits in the unit increased to $30.2 million from $26.1 million in the fourth quarter of 2010.

Meanwhile, the global finishes segment saw net sales rise 8.1 percent to $463.3 million, on higher prices and acquisitions. Acquisitions increased net sales in U.S. dollars by 3.2 percent in the latest quarter, while currency rates hurt sales in the unit by 1.7 percent.

The Latin America coatings group's net sales increased 4.0 percent to $220.1 million in the quarter due to selling price increases and higher paint sales volume.

"We are pleased to report record sales and earnings per share in 2011 in an environment of soft demand and rapidly escalating raw material costs," said chairman and CEO, Christopher M. Connor.
"Our operating segments continue to control costs and implement price increases in an effort to keep pace with rising raw material increases."

"Over the past year, our Paint Stores Group continued to focus on gaining market share in all markets and product lines while maintaining customer service in a difficult raw material environment."

He continued: "We are continuing to invest in our business by expanding the Paint Stores platform. In 2011, we added 60 net new stores, finishing the year with 3,450 stores in operation. In the fourth quarter, the Company surpassed 4,000 total stores and branches across all segments achieving a significant milestone in the Company's history."

During the quarter, the company bought back 460,000 shares of its common stock.

Looking forward, the company anticipates consolidated net sales will increase between nine to 14 percent in the first quarter of 2012, and expects earnings per share in the range of 56 to 74 cents.

Analysts were expecting the company to earn 70 cents a share on sales of $2 billion in the first quarter, according to Thomson Reuters.

For the full year 2012, sales are anticipated to rise by a high single to low teens percentage, with profits per share in the range of $5.37 to $5.67, versus $4.14 in 2011.

Cleveland, Ohio-based Sherwin-Williams branded products are sold exclusively through a chain of more than 4,000 company-operated stores and facilities, while the company's other brands are sold through  mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors.

Shares edged up 0.3 percent to $96.36 as of 10:26am ET.

For the three months that ended November 30, the company posted earnings of $30.3 million, or $0.16 per share, down 5.5 percent from $32.0 million, or $0.17 per share, a year ago.

According to Bloomberg Businessweek, analysts were expecting 17 cents per share in earnings.

Total revenues, however, rose 10.8 percent to $952.7 million, from $860.1 million in the same period last year, beating sales expecations of $917 million.

Higher deliveries and a two percent hike in prices sent sales from its homebuilding business up 9.6 percent to $834.2 million during the quarter, offsetting an 8.9 percent decline in revenues from its financial services business due in large part to decreased mortgage volumes.

Gross profit margins on home sales, excluding certain valuation adjustments, rose 80 basis points to 21.6 percent.

Lennar's Rialto Investments division, which works out troubled loans, saw revenues more than double to $46.5 million. The company said accretable interest income associated with the segment's portfolio of real estate loans drove growth during the quarter.

"We are pleased to report EPS of $0.16 for our fourth fiscal quarter of 2011, making this our seventh consecutive quarter of profitability," commented CEO Stuart Miller.

"Despite operating in a challenging real estate market, we achieved profitability in all of our business segments.

"During the quarter, we continued to manage our homebuilding business carefully with tight controls over our costs and a focus on improving our gross margins. We benefited greatly from our strategic capital investments in new higher margin communities.

"As we come to the end of 2011 and head into 2012, we have seen the market start to stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive, compared to the heated rental market."

During the fourth quarter, Lennar delivered a total of 3,375 homes, up 9.3 percent from a year ago, representing a dollar value of $825.8 million. New orders increased 20 percent to 3,027 homes, representing a dollar value of $744.7 million.

At quarter-end, the company posted a backlog of 2,171 homes, up over 35 percent, representing a dollar value of $560.7 million.

For the full year, Lennar recorded earnings of $92.2 million, or $0.48 per share, down over three percent from last year. Revenues rose less than one percent to $3.1 billion.

Analysts had expected 46 cents per share in profits for the year, on $3.1 billion in revenues.

In New York, shares of the Miami, Florida-based company rose 2.4 percent to $21.26, as of 9:32 am EDT. The company's stock gained over nine percent last year.

Chinese iron ore trading and cement business Prosperity Minerals (LON:PMHL) boosted its first-half revenues by 17 per cent to US$507.8 million while producing a pre-tax profit of US$8.4 million (H1 2011: US$2.5 million loss), the firm said today.

Reporting its interim results for the six months to September 30, Prosperity said that while the firm increased the amount of iron ore shipped during the first half to 2.8 million tonnes, from 2.7 million tonnes in H1 2011, its revenue increase was also due to higher average selling prices. However, the operating profit per tonne came in lower at US$3.6 million (H1 2011: US$6.6 million) because, the firm said, margins continue to come under pressure due to the abandonment of the industry’s annual price fixing and greater direct trade between miners and steel mills.

Prosperity’s cement operations produced an attributable profit of US$8.7 million, compared to a loss of US$0.6 million in H1 2011. The firm said that its 33 per cent-owned Anhui Chaodong Cement business produced and sold more cement and clinker as demand in its region was strong and average selling prices higher. The 16.1 per cent-owned TCC Liaoyang business produced an operating profit of US$0.2 million, but it ended up contributing a loss of US$1.9 million (H1 2011: US$0.04 million) due to as loss on demand disposal of US$2.1 million caused by a share issuance in August.

Prosperity said that its real estate development projects business made a loss of US$3.5 million, compared to a US$0.6 million profit in H1 2011. 

“I remain confident that the company will continue to trade well in both iron ore and real estate despite challenging market conditions brought about by an unsettled iron ore market and Chinese government policy, together with continuing global economic uncertainties,” said David Wong, Prosperity’s chairman and chief executive officer.

Prosperity’s share price was down 1.8 per cent at 82 pence in early trading today.

Prosperity Minerals (LON:PMHL) today announced that its wholly-owned iron trading subsidiary has signed a new deal.

Prosperity Materials Macao Commercial Offshore Ltd (PMMC) has agreed to supply Jiangsu Prosperity Steel with up to 1.81 million tonnes of iron ore over a 14 month period.

This will be capped at 130,000 tonnes to the end of 2011, and 1.68 million tonnes in 2012. 

PMMC will also provide a range of administrative services, including the handling of shipping documents and liaising with payment banks.  

PMMC will receive a commission of US$2 per dry metric tonne of iron ore. 

It will also receive a handling charge of US$2 per dry tonne of iron ore, if the letter of credit in relation to shipment includes payment terms of 90 days.

For the three months that ended September 30, the maker of pressure-treated wood products posted net earnings of $16.57 million, or $1.03 per share, a 33 percent increase above the $12.44 million, or $0.78 per share, it earned a year ago, and up over the 93-cents per share that analysts polled by Bloomberg Businessweek expected.

Revenues rose 13 percent to $181.81 million, from $161.30 million in the same period last year.

"Stella-Jones continues to benefit from robust investment in the North American rail and electrical utility infrastructure, which led to another strong financial performance in the third quarter," commented president and CEO, Brian McManus.

"A greater geographical reach and a more extensive breadth of products and services have further enhanced Stella-Jones' market position and driven sales growth. More importantly, additional efficiencies from increased throughput provided additional thrust to operating profitability."

During the quarter, sales of railway ties increased ten percent to $92.3 million, reflecting solid demand, the company said. Utility pole sales increased 32 percent to $56.2 million, while residential lumber sales rose 11 percent to $10.7 million.

These segments more than offset a decrease of ten percent in industrial product sales, to $22.6 million, stemming from the sale of certain assets of its Indiana facility, Terre Haute.

Looking forward, McManus added: "Despite recent volatility in the macro-economic environment, we expect demand for our core products to remain solid in the fourth quarter of 2011.

"In the short-term, our priority is to complete our due diligence and, if satisfactory, proceed with the closing of our proposed acquisition of Thompson. If successful, this network expansion would further enhance Stella-Jones' product and service offering to the North American railroad industry."

In Toronto, shares of the Quebec-based company increased 1.51 percent to $40.35, as of 9:34 am EDT.

For the three months ending August 31,  the homebuilder widened its net loss to $9.65 million, or $0.13 per share, compared to the third quarter a year ago, when the company had a net loss of $1.4 million, or $0.02 loss per share.

The latest quarter's results included a $1.2 million charge related to inventory impairments and land option contract abandonments. This same charge totaled $3.4 million a year ago.

Compared to the second quarter of 2011, however, KB Home narrowed its losses substantially from $68.5 million, or $0.89 per share.

Revenues were $367.3 million in the latest quarter, up 35% from the second quarter's $271.7 million, but down 27% from $501 million a year ago, due to a decline in housing revenues.

Analysts polled by Thomson Reuters forecast a loss of 19 cents a share for the third quarter, on revenue of $381 million.

President and CEO, Jeffrey Mezger, said: "We achieved encouraging operational and financial results in the third quarter despite the ongoing difficult housing environment."

"We improved our bottom line results by narrowing our net loss substantially from the second quarter, and continued our sequential improvement in key financial metrics in 2011."

Still, total homebuilding revenues shed 27% to $364.53 million from a year ago, reflecting a 31% year-over-year decrease in the number of homes delivered to 1,603. Sales from housing slipped 27% to $364.46 million, while revenues from land sank 96% to $75,000. Gross margins in the housing unit fell to 16.9% from 17.5% a year ago.

The company said the 31% reduction in the number of homes delivered was a result of the expiry of a 2010 federal homebuyer tax credit, which helped boost deliveries and revenues in the third quarter a year ago.

However, the average selling price of each home increased 6% year-over-year to $227,400, while net orders during the quarter also hiked 40% to 1,838. The cancellation rate of gross orders decreased to 29% from 33% in the year-ago period.

As at quarter-end, KB Home had 2,657 homes in backlog, for a dollar value of $559.3 million, a 23% rise over the $455.3 million backlog, or 2,169 homes, at the same time last year.

Revenues from KB Home's financial services business also improved 28% to $2.8 million in the quarter. In late June, though, it stopped accepting loan and mortgage applications, instead entering into a marketing services agreement with MetLife Home Loans, which will offer a variety of financing options to KB Home homebuyers.

After rising 0.7% in pre-market trading, KB Home's stock in New York was up 4.37% as of 9:40 am EDT, to trade at $5.97.

For the three months ending August 31, the company posted $20.7 million, or $0.11 per share, in net income, in line with analysts' estimates, though down from $30.0 million, or $0.16 per share, a year ago.

Despite the fact that revenues slid to $820.2 million, down from $825.0 million a year earlier, sales were still above the $808 million analysts were anticipating for the quarter.

"We are pleased to report . . . our sixth consecutive quarter of profitability," said CEO Stuart Miller.

"We generated profits in all of our business segments, despite operating in very challenging economic conditions."

The company's homebuilding segment, which made $711.8 million in sales during the quarter, a 1% drop from a year ago, was helped by a 3% increase in the average sale price of homes delivered. The price for an average home increased to $247,000, from $240,000 in the year-ago period, but new home deliveries still slipped to 2,865 homes, from 2,950 homes, a year ago.

New orders, however, increased by 11% to 2,914, - the company's first quarterly increase in five years excluding the first half of 2010, which benefitted from the Federal homebuyer tax credit, Lennar said, a good sign of future demand.

Lennar's financial services business, which provides mortgage financing, reported revenues of $66.4 million, down 4%, partially offset by improved cost saving initiatives in the company's title operations, it said.

Meanwhile, its Rialto Investments business, which focuses on distressed real estate asset investments, saw $42.1 million in sales, an 11% hike, as Lennar's interest income from its real estate loans and managing fees increased.

At quarter-end, Lennar had a backlog of 2,519 homes, or $642.8 million, up 16% compared to its backlog of 2,173 homes, or $569.3 million, at the same time last year.

"We have seen demand for home purchases slowly return to the marketplace, driven by low home prices and all-time low interest rates.

"Limiting that demand is tight and tightening lending standards, high unemployment and low overall consumer confidence, which continue to weigh heavily on the purchase of new homes," Miller concluded.

"Our strong balance sheet positions us well to capitalize on opportunities and assuming market conditions remain stable, we expect to be profitable again in the fourth quarter and for the year."

Lennar's stock in New York rose 3.62% to $14.30 as of 10:15 am EDT.

At the end of July, China ACM announced that its chairman and CEO, Xianfu Han, and vice-chairman and COO, Weili He, offered to privatize the company by acquiring shares not already held for a price of $2.65 each.

Han and He currently own an aggregate 49.5% of the company's common stock.

In the letter, Ephraim Fields, a partner at Echo Lake, claimed the chairman's offer of $2.65 per share is "grossly inadequate, and noted China ACM's tangible book value of $4.22 per share, adding that the offer represents only 63% of this value.

The letter also pointed to China ACM's $71.3 million in accounts receivable, the company's largest asset, of which the company said it should be able to collect virtually all. The company's second largest asset is a cash position of $15.4 million, including $3.4 million in cash and equivalents, and $12.1 million in investments.

China ACM produces certified, eco-friendly ready-mix concrete for technical infrastructure projects, like high-speed rails. Based in Beijing, the company also offers technical services related to its core concrete business.

Fields said Echo Lake, which holds a stake in China ACM, does not promote the liquidation of the company, as it believes the company is worth far more than book value.

However, the letter continued to claim that if liquidated at only 95% of its tangible book value, China ACM would see gross proceeds of approximately $4.01 per share, 51% higher than the chairman's offer.

Fields also mentioned China ACM's reference to its total combined backlog at a record $87 million during the company's last earnings conference call, where chairman and CEO Han claimed: "We remain confident that our historically strong growth will continue."

Echo Lake said it believes the company's shares will exceed $2.65, as they did in early may 2011, if the low-ball offer is rejected.

Any merger agreement would require the majority approval of China ACM's shareholders, and Fields reminded the board's directors of their fiduciary responsibility to act in the best interest of shareholders.

On the Nasdaq Exchange, shares of China ACM rose 2.76% to $1.85 as of 10:31 am EDT.

As a result of the deal Prosperity plans to pay US$60 million to investors via a special dividend.

In a stock exchange statement Prosperity said that the operating environment for the iron ore business has changed significantly since it joined AIM in 2006. It highlighted that in the past, the iron ore trading model was capital free and low risk.

Over the past few years it has become substantially more difficult to secure reliable sources of iron ore supply as major iron ore producers increasingly prefer to deal with steel mills directly, bypassing traders, Prosperity said.

Through a transaction with an associated company Prosperity International Holdings (H.K.) Limited - which owns 64.07 per cent of Prosperity Minerals Plc - the company will sell the iron ore business for US$38.6 million. The deal value has been determined by an independent valuer, Jones Lang LaSalle Sallmanns.

“While iron ore trading has been a good business for Prosperity in the past, the dynamics of the business are changing, requiring much more capital commitment from Prosperity,” said chairman and chief executive David Wong.

“As such, the Board decided that it is an opportune time to exit the business and focus on our PRC real estate opportunities.

“Following the disposal, we will be able to focus our management and capital resources on real estate investment and development, which I believe have greater upside potential and manageable risk based on our experience and knowledge of local markets. 

“The company also intends to continue paying cash dividends to shareholders in coming years. I recommend this deal whole heartedly and look forward with great confidence.”

In terms of Prosperity’s valuation the market has applied a blanket discount to the stock because it appears to all intents and purposes to be a conglomerate with interests in cement, iron ore trading and property. It has therefore been deemed to lack focus. 

Prosperity’s valuation isn’t helped in the minds of the British investing public at least by the dominant shareholding of founder David Wong’s Prosperity International, or the fact that its interests are in China, a nation few investors on this side of the world truly understand.

Counter-balancing this is a net asset value roughly double the current share price, while Prosperity also comes with a kicker for income investors. Paying a dividend at all makes the company something of a novelty on AIM and with a yield of more than 9 per cent it is particularly notable.

This bumper shareholder pay-out will now be enhanced further as a result of the iron disposal. Prosperity shareholders will receive US$0.42 a share through the proposed special dividend, which represents a total payout of US$60 million.

Both the disposal and the special dividend require approval and consequently Prosperity will now call an extraordinary general meeting for a shareholder vote. The company also plans to change its name following the divestment.