D.R. Horton Reports 3Q Loss

Fort Worth, TX, July 26, 2007--D.R. Horton posted a deep loss in the fiscal third-quarter as the homebuilder recorded enormous charges to write down the value of unsold inventory and deposits on land.

The company posted a loss of $823.8 million, or $2.62 per share, in the period ended June 30, compared with year-earlier net income of $292.8 million, or $0.93 per share.

The most recent quarter included pretax charges of $835.8 million for inventory impairment and $16.2 million to forfeit deposits on land. Horton said the quarter also included a goodwill impairment charge of $425.6 million.

Analysts expected losses of $0.35 per share, according to Thomson Financial.

Revenue from homebuilding fell to $2.5 billion from $3.6 billion, as the number of homes closed plummeted to 9,643 from 13,377.

The company blamed the loss on the persistent housing slump that has left a glut of unsold homes on the market, forcing sharp price reductions. It said higher interest rates and tighter lending standards are also crimping already-soft demand. Looking ahead, Horton did not give any indication about when the market may turn.

"We believe that market conditions will continue to be challenging, and our quarter-end impairment evaluations incorporated our more cautious outlook for the industry," Chairman Donald Horton said in a statement.