D.R. Horton back in profit

US homebuilder D.R. Horton reported third quarter sales to 30 June of US$ 1.4 billion, up +51% on the US$ 914 million recorded for the same quarter last year. Following a -US$ 144 million net loss for the third quarter last year, the company reported a US$ 50 million profit for the corresponding period this year.

A statement said the number of homes sold in the quarter rose +60% to 6805, up from 4240 for the same period last year.

Chairman Donald Horton said, "We are pleased to report a quarterly profit for the third consecutive quarter as well as positive cash flow from operations.

"As we expected, market conditions in the homebuilding industry have become more challenging after the expiration of the tax credit at the end of April. Our net sales orders declined significantly in May and improved modestly in June and July. However, we will continue to focus on providing affordable homes for the first-time buyer, controlling our costs and contracting for new communities with attractively priced finished lots while maintaining our strong balance sheet."