D.R. Horton net loss narrows to $62.6 million

MADRID (MarketWatch) — U.S. builder D.R. Horton, Inc. on Tuesday, Feb. 3, 2009 reported a fiscal first-quarter net loss of $62.6 million, or 20 cents per diluted share, compared to a net loss of $128.8 million, or 41 cents per diluted share a year ago. The results included $56.2 million in pre-tax charges to cost of sales for inventory impairments and write-offs of deposits and pre-acquisition costs related to land option contracts that it won't pursue.
A survey of analysts by FactSet Research had produced a consensus forecast of 53 cents a share. The company said homes closed totaled 4,068, versus 6,549 a year ago. The company declared a quarterly cash dividend of $37.5 cents a share.
Donald R. Horton, chairman of the board, said market conditions in the industry continued to deteriorate in the first quarter. "We continue to adjust our business to the current homebuilding environment by reducing our homes under construction and our owned lot position, controlling costs and repaying debt," he said, in a press statement. He said the company plans to generate positive operating cash flow in fiscal 2009, in addition to cash provided by any federal income tax refunds.