D.R. Horton misses estimates, shares flat

NEW YORK (Reuters) - Homebuilder D.R. Horton Inc (DHI.N) reported a narrower second-quarter loss on Monday as charges to write down the value of its land declined but its results still missed analysts' estimates.

The Fort Worth, Texas-based builder posted a loss of $108.6 million, or 34 cents per share, for its fiscal second quarter ended March 31, compared with a loss of $1.3 billion, or $4.14 per share in the year-earlier quarter.

Analysts on average had expected a loss of 31 cents per share, according to Reuters Estimates.

The results included $48.1 million in land write-downs, down from $834.1 million in last year's second quarter.

Homebuilding revenue fell to $775.3 million from $1.62 billion, as closings fell 47 percent to 3,585.

"Market conditions in the homebuilding industry are still challenging, characterized by rising foreclosures, high inventory levels of both new and existing homes, increasing unemployment, tight credit for home buyers and eroding consumer confidence," said Donald R. Horton, chairman of the board.

The company also announced the termination of its revolving credit facility, which will save it over $3 million annually.

"This means they're going to go without a net," said analyst Vicki Bryan of Gimme Credit, a bond research firm.

She suspects the company did not renew its facility because its banks would not do so without tightening the terms by requiring an interest reserve and assets to secure the line.