D.R. Horton New Home Orders Fall 39%
Fort Worth, TX, October 16, 2007--D.R. Horton, the nation’s largest home builder, said its quarterly net orders for new homes dropped 39% amid a spike in cancellations.
The company said it expected tough selling conditions to persist as banks impose stricter lending standards.
Despite holding a discount sale, the company said net orders for the fourth quarter ended on September 30 fell to 6,374 worth $1.3 billion from 10,430, or $2.5 billion, a year earlier. The company's cancellation rate in the latest quarter was 48%.
In a move to cut debt and inventory while generating cash, the company reduced the number of homes under construction in the quarter. That helped it generate $1 billion in cash flow from operations for the fiscal year.
D.R. Horton plans to release fourth-quarter results on November 20 before the market opens.
In July, when D.R. Horton posted its first-ever quarterly loss as a public company, it took a charge of nearly $1.28 billion, partly for a write-down on the value of projects in