Repeat The Mantra
Much like in the Wizard of Oz... repeat after the man behind the curtain: there is no spillover or bleed into the economy from the housing sector....
Homebuilders: DR Horton reported Q3 loss of $824M on a 37% drop in backlog under contract; 40% drop in sales orders. Fiscal YTD 9 months sales decline of 32%.
Donald R. Horton, Chairman of the Board, said, "market conditions in the homebuilding industry continue to be challenging as inventory levels of both new and existing homes remain at historically high levels.
Home price appreciation over the past few years, higher interest rates and tightened credit standards in the mortgage industry are all negatively impacting affordability."
#3 U.S. homebuilder Pulte Homes reported a net loss for Q2 of $507.6M as net new home orders fell 20% and total revenue dropped 40%.
Centex reported a Q1 net loss of $128M while revenues fell 31%.
Ryland Group reported a Q2 net loss of $52.4M.
Beazer reported a Q3 net loss of $123M on a 35% drop in home closings, a 30% in new sales and a 36% drop in revenue.
Profit declined as Exxon Mobil missed the quarterly number; XOM reported EPS +6% (the smoke and mirrors of stock buybacks) despite a drop in net income.
Ford posted its 1st profit in 8 quarters. Blockbuster reported a Q2 net loss of $38M on a 2.8% decline in revenue.
Black & Decker reported a Q2 $34M drop in net earning citing the meltdown in the U.S. housing market as well as significantly higher commodity costs.
Office Depot reported a $9M drop in net profit on weaker North American sales.
Macroeconomic conditions in the US, combined with rising fuel costs, have negatively impacted its sales in the division.
The company faced softer sales in furniture and supplies, and, to a lesser extent, technology during the quarter, as customers adjusted their spending in reaction to macroeconomic conditions.
As new home construction in the US continued to decline during the second quarter, furniture business, which continued to experience soft sales and accounted for about 160 basis points of impact to the overall comp sales decrease.
Repeat that mantra, there is no spillover or bleed from housing into the mainstream economy.
Homebuilders: DR Horton reported Q3 loss of $824M on a 37% drop in backlog under contract; 40% drop in sales orders. Fiscal YTD 9 months sales decline of 32%.
Donald R. Horton, Chairman of the Board, said, "market conditions in the homebuilding industry continue to be challenging as inventory levels of both new and existing homes remain at historically high levels.
Home price appreciation over the past few years, higher interest rates and tightened credit standards in the mortgage industry are all negatively impacting affordability."
#3 U.S. homebuilder Pulte Homes reported a net loss for Q2 of $507.6M as net new home orders fell 20% and total revenue dropped 40%.
Centex reported a Q1 net loss of $128M while revenues fell 31%.
Ryland Group reported a Q2 net loss of $52.4M.
Beazer reported a Q3 net loss of $123M on a 35% drop in home closings, a 30% in new sales and a 36% drop in revenue.
Profit declined as Exxon Mobil missed the quarterly number; XOM reported EPS +6% (the smoke and mirrors of stock buybacks) despite a drop in net income.
Ford posted its 1st profit in 8 quarters. Blockbuster reported a Q2 net loss of $38M on a 2.8% decline in revenue.
Black & Decker reported a Q2 $34M drop in net earning citing the meltdown in the U.S. housing market as well as significantly higher commodity costs.
Office Depot reported a $9M drop in net profit on weaker North American sales.
Macroeconomic conditions in the US, combined with rising fuel costs, have negatively impacted its sales in the division.
The company faced softer sales in furniture and supplies, and, to a lesser extent, technology during the quarter, as customers adjusted their spending in reaction to macroeconomic conditions.
As new home construction in the US continued to decline during the second quarter, furniture business, which continued to experience soft sales and accounted for about 160 basis points of impact to the overall comp sales decrease.
Repeat that mantra, there is no spillover or bleed from housing into the mainstream economy.
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