I might be slow…..haven’t been keeping up lately, but has anyone seen this one?……
Nation’s Largest Home Builder: 2007 Not Good
The CEO of D.R. Horton, the nation’s largest home builder, says 2007 is likely not going to be good for his company.
CEO Donald J. Tomnitz says he expects home prices to continue their decline this year as builders try to sell the glut of homes currently on the market.
Excess inventory, built up during a five-year boom cycle that saw land purchases and housing construction reach all-time highs, is the biggest problem facing the sector, he says.
“I don’t want to be too sophisticated here, but 2007 is going to suck, all 12 months of the calendar year,” Tomnitz recently told investors.
Horton’s net income for the quarter ended Dec. 31 plummeted to $109.7 million, or 35 cents per share — from $310.1 million, or 98 cents per share, a year earlier.
Source: The Associated Press, Jeremy Herron (03/07/07)
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