Americans searching for a new home lifted the profitability of D.R. Horton in the second-quarter of fiscal 2013 by as much as 173%.
The dramatic growth showed the underpinnings of a housing recovery that is now sweeping through certain U.S. markets.
The Fort Worth-based builder posted a second-quarter profit of $111 million, or 32 cents a share, up from $40.6 million, or 13 cents a share, a year earlier.
Homebuilding revenue for the six-months ending March 31 also shot up 160%, reaching $177.3 million, or 52 cents a share, compared to $68.3 million, or 21 cents a share, during the same period of 2012.
Demand drove the builder’s profit surge with net sales orders increasing 34% to 7,879 orders in 2Q, up from 5,899 a year earlier. The value of those net sales also rose by 52% to $2 billion, compared to $1.3 billion a year ago.
D.R. Horton’s (DHI) sales order backlog – or the number of homes under contract but yet to be built – also grew 54% year-over-year to 9,553 homes in the most recent quarter. The value of those units still in the pipeline increased 76% to $2.4 billion.
“The spring selling season is off to a strong start at D.R. Horton, with robust demand driving higher sales volumes and favorable pricing, which is reflected in the 14% increase in our average selling price,” said Donald Horton, chairman of the company.
“We are in an excellent position to continue to meet increased sales demand and aggregate market share with 15,800 homes in inventory and 175,000 lots owned or controlled under option contracts, of which 58,000 lots are fully developed.”