DR Horton Inc reported a fall in earnings, although sales held up, as rising interest rates and inflationary pressures weighed on the building sector.
The housebuilder said in the financial fourth quarter, revenue increased 9% to $10.5 billion compared to $9.6 billion the year before.
But net income of $4.45 per diluted share was down from $4.67 a year ago, while net income of $1.5 billion compared to $1.6 billion before.
Home sales revenue totalled $8.8 billion on 22,928 homes closed while net sales orders increased 39% to 18,939 homes and 34% in value to $7.3 billion.
Donald Horton, chairman said: “Despite continued higher mortgage rates and inflationary pressures, our net sales orders increased 39% from the prior year quarter, as the supply of both new and existing homes at affordable price points remains limited and demographics supporting housing demand remain favourable.”
“We are well-positioned to meet changing market conditions,” he added.
Looking ahead to the new financial year, the firm forecasts revenue of around $36.0 billion to $37.0 billion and homes closed by homebuilding operations of 86,000 homes to 89,000 homes.