$128.8 Million Fiscal First Quarter Net Loss for Homebuilder D.R. Horton
- Feb 07, 2008
Fort Worth, Texas–D.R. Horton Inc.–the largest U.S. residential builder by volume–announced a fiscal first quarter loss and said it feels the housing decline will continue, The Wall Street Journal reported Thursday.Horton posted a net loss of $128.8 million, or 41 cents a share, for the quarter ended Dec. 31. In the same quarter in 2006, the Fort Worth, Texas-based company’s net income was $109.7 million, or 35 cents a share. Revenue dropped to $1.71 billion, a 39 percent decrease. “Market conditions remained challenging in our December quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive,” said Chairman Donald Horton. “Lending standards continue to be more restrictive than during the previous year, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.”With a cancellation rate of 44 percent, the number of homes the company closed dropped 36 percent to 6,549 in the quarter. Horton’s sales backlog of homes fell by a little more than half to 8,138. Net orders declined 52 percent to 4,245.