FORT WORTH, TX -- Homebuilder D.R. Horton, Inc. reported a net loss of $1.3 billion for its second fiscal quarter ended March 31, 2008. The quarterly results included $834.1 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 the Company does not intend to pursue.
Donald R. Horton, Chairman of the Board, said, "Although market conditions in the homebuilding industry remain challenging, we continue to focus on reducing inventory and generating cash flow from operations. We reduced our homes in residential inventory to approximately 15,100 homes at the end of March, down approximately 13% from the end of December. We generated approximately $450 million of cash flow from operations this quarter and exceeded our fiscal year goal of at least $1 billion in only six months. We ended the quarter with a homebuilding cash balance of $519 million. We also maintained our focus on controlling our costs, reducing our homebuilding SG&A expenses by approximately $88 million in our quarter ended March 31, 2008, compared to the year ago quarter."
The homebuilder sold 7,528 homes during the latest quarter, compared with 9,983 homes for the same quarter of fiscal 2007. The Company's cancellation rate for the second quarter of fiscal 2008 was 33%.
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