D.R. Horton Returns to Profitability

Homebuilder D.R. Horton Inc. today reported a profit for the first time since 2007 with a gain of $192 million in the first fiscal quarter, compared with a loss of $62.6 million  in the prior-year period. 

February 02, 2010

Homebuilder D.R. Horton Inc. today reported a profit for the first time since 2007 with a gain of $192 million in the first fiscal quarter, compared with a loss of $62.6 million  in the prior-year period. 

A tax benefit and other positive news accounted for the profit:

- Excluding the one-time tax benefit of $149.2 million, the company earned $42.8 million.
- Revenue rose 23 percent to $1.1 billion from $900.3 million.
- The number of homes sold increased 36 percent to 5,529.
- Orders increased 45 percent to 4,037 homes.

Horton has had orders improve in recent quarters due to low mortgage interest rates and tax credits for homebuyers. The company said that Congress' extension of first-time homebuyer tax credit until April 30 will benefit the company's spring selling season.

Horton filed for an additional $352 million tax refund related to 2009 operating losses. The company expects to receive the refund in the current quarter. Some builders have managed to turn a profit in the final months of 2009 because of a new tax rule that allows companies to offset past losses.

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