D.R. Horton Uses Incentives to Boost Sales, but Investors Don't Like What They See

By Anonymous -
To keep sales growing, D.R. Horton – which closes more sales than any other American home builder – has been using incentives to get buyers to sign, whether upgrades or help with closing costs or others.  As the home-building market squeezes out the last price increases it is likely to be able to get for a while, other builders may follow suit to keep turn shoppers into buyers.  The next stage of the housing recovery will, UBS analyst David Goldberg said, need the first-time home buyers who have been reported M.I.A. because wages have not gone up even though hiring has and banks remain fearful of being anything less than stringent in making mortgage loans.  Horton's CEO, Donald Tomnitz, said he sees no problem with profit dropping from 22.5% to 20.7% when that produces a 25% increase in sales. He also said 20% profit is more normal for the home-building industry, but investors apparently did not want a history lesson, and Horton sank 11.5%.

(From Construction Dive)

Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602

Comments

Post a Comment

Popular posts from this blog

The Dotted Line: When Contractors Can Walk Off the Job

By -
When general contractors or subcontractors sign on to construction projects, they usually start off believing everything will run smoothly. But, during the course of the work, issues sometimes arise that force all parties to go running back to their contracts in order to evaluate their options. One of those options for construction companies is to simply stop work, but contractors need to take care when making such a big decision. “Stopping work and ultimately terminating the contract is one of the most radical things you can do,” said Joseph McManus Jr., attorney and shareholder at law firm Carlton Fields.   Luckily, most of the circumstances under which contractors are clearly entitled to stop work are included in the most popular standard forms of contracts. Nonpayment The most common reason that contractors find it necessary to stop work, McManus said, is that they haven’t been paid for approved invoices. In that scenario, he said, contractors have the right to
Read more

"Mass-timber" Sees Greater Use in Roofing and Construction Projects in Europe

By -
Image
The use of "mass-timber," or prefabricated engineered wood components is becoming more common in construction and roofing applications in Europe. In projects such as the galleria roof of a central city building in Surrey, it helps meet demand for wood structures to add visual appeal. From NRCA Trenton H. Cotney Florida Bar Certified Construction Lawyer Trent Cotney, P.A. 407 N. Howard Avenue Suite 100 Tampa, FL 33606 www.trentcotney.com
Read more