Industry News

Largest U.S. home builder’s earnings plunge 85%

D.R. Horton notes challenging market conditions

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

D.R. Horton Inc., the largest U.S. home builder, today reported an 85 percent decline in quarterly earnings as market conditions continue to challenge the nation's home builders. The company said that net income for its second fiscal quarter ended March 31 was $51.7 million, or 16 cents per share, down from $352.8 million, or $1.11 per share, during the same period a year ago. The 2007 quarterly earnings included charges related to the lower value of land. Donald R. Horton, chairman of the board, said, "Market conditions in the home-building industry continue to be challenging in most of our markets as inventory levels of both new and existing homes remain high, and further increases in the use of sales incentives continue to put pressure on profit margins." Home-building revenue for the second quarter of fiscal 2007 totaled $2.6 billion, compared with $3.5 billion in the same quarter of fiscal 2006. And homes closed in the current quarter totaled 9,792, compared with 12...