D.R. Horton Narrows Loss in Quarter on Cost Cuts

Fort Worth, TX, Feb. 3, 2009--D.R. Horton Inc. reported its smallest loss in over a year as costs and charges fell faster than revenue.

The net loss for the three months ended Dec. 31 narrowed to $62.6 million, or 20 cents a share, from $128.8 million, or 41 cents, a year earlier. The company beat the average analysts’ forecast for a net loss of 56 cents.

“Market conditions in the homebuilding industry continued to deteriorate during our first fiscal quarter,” Chairman Donald R. Horton said in the statement. “Rising foreclosures, high inventory levels of both new and existing homes, increasing unemployment, tight credit for homebuyers and eroding consumer confidence” were to blame, he said.

Homebuilding revenue  fell to $900.3 million from $1.7 billion, the company said. Orders fell 35 percent to 2,777 and the company’s cancellation rate in the quarter was 38 percent.

Costs fell to $816.6 million from $1.7 billion as charges for inventory impairments and land writeoffs dropped to $56.2 million from $245.5 million a year earlier.