D.R. Horton sees 55% increase in new home purchase contracts

Homebuilder D.R. Horton Inc. reported its second quarterly profit in a row Friday.

Fort Worth-based D.R. Horton was the largest homebuilder in the Dallas-Fort Worth area in 2009, starting almost 2,300 single-family homes. That was more than twice as many starts as any other builder. " width="0">

FILE 2009/The Associated Press

Fort Worth-based D.R. Horton was the largest homebuilder in the Dallas-Fort Worth area in 2009, starting almost 2,300 single-family homes. That was more than twice as many starts as any other builder.

The Fort Worth-based builder had a 55 percent increase in new home purchase contracts during the quarter that ended March 31, fueled by federal tax credits that spurred first-time home sales.

Almost 60 percent of Horton's sales went to first-time buyers. The government tax credit of up to $8,000 expired Friday.

"It's all about sales – nothing happens until we sell something," Horton CEO Donald Tomnitz said in a conference call.

"We are prepared to compete in the industry with or without any government tax credits. Our sales are still solid in the last week."

Horton closed 4,260 home sales in the quarter, up 19 percent from a year ago, and took contracts to sell 6,438 more.

The strongest activity was in the builder's South Central region, which includes Texas.

Horton had net income of $11.4 million, or 4 cents a share, for the quarter. Analysts had forecast a loss.

In the same quarter last year, the builder lost $108.6 million, or 34 cents a share.

Revenue rose 16 percent to $896.8 million from $775.3 million.

Read more>