Homebuilder DR Horton quarterly profit jumps on record home prices

Feb 2 (Reuters) – D.R. Horton Inc (DHI.N) posted a 44.2% rise in quarterly profit on Wednesday, benefiting from record-high property prices and lower interest rates on home loans.

U.S. homebuilding jumped to a nine-month high in December amid an acute shortage of properties on the market, though higher prices for raw materials and labor shortages remained a constraint for homebuilders. read more

New home sales increased 11.9% to a seasonally adjusted annual rate of 811,000 units in December, the highest level since March, the U.S. commerce department said last week. read more

“Housing market conditions remain very robust, and we are still selling homes later in the construction cycle so we can better ensure the certainty of the home close date for our homebuyers,” said Donald R. Horton, chairman of the company’s board.

Net income attributable to the largest U.S. homebuilder rose to $1.14 billion, or $3.17 per share, in the first quarter ended Dec. 31, from $791.8 million, or $2.14 per share, a year earlier.

D.R. Horton said it sold 21,522 homes in the quarter, up from 20,418 a year earlier.

Total revenue rose to $7.05 billion from $5.93 billion.

Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli

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