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Wednesday, November 05, 2008

D.R. Horton Warns

by Calculated Risk on 11/05/2008 08:44:00 AM

“Market conditions in the homebuilding industry deteriorated during our fourth fiscal quarter and October, characterized by rising foreclosures, high inventory levels of both new and existing homes and reduced liquidity in the mortgage markets. In addition, consumer confidence has been eroded by a weakening economy, higher unemployment and record volatility in the capital markets."
Donald R. Horton, Chairman, D.R. Horton, Nov 4, 2008
From D.R. Horton press release:
Home sales revenue for the fourth quarter of fiscal 2008 totaled $1.5 billion on 6,961 homes closed, compared to $3.0 billion in the same quarter of fiscal 2007 on 11,733 homes closed.
The Company’s net loss for the fourth quarter is estimated to be in the range of $800 to $900 million ...
Horton's home sales were half (in dollars), and about 40% lower in units, compared to the same quarter in 2007. Ouch.