Dow Today – Homebuilder D.R. Horton cuts annual forecast on supply chain disruptions
(Reuters) -Largest U.S. homebuilder D.R. Horton Inc on Monday cut its forecast for annual revenue and homes closed, citing supply chain disruptions that included shortages and delivery delays in building materials along with tightness in the labor market.
The U.S. housing market, which had seen a pandemic-driven boost to its business, has over the months faced labor supply issues at saw mills and ports, causing shortages of lumber and other raw materials, along with a rise in construction costs.
The Texas-based company now expects homes closed between 81,300 and 81,700, from its prior outlook of 83,000 to 84,500 homes.
However, the company expects higher current-quarter home sales gross margin as limited supply of homes amid robust demand has led to an increase in prices.
The homebuilder expects its revenue for fiscal 2021 between $27.4 billion and $27.6 billion, down from its previous expectation of $27.6 billion to $28.1 billion.
The company, however, expects minimal impact on its earnings.
Smaller rival Lennar Corp is expected to report its third-quarter results after markets close later in the day.
(Reporting by Shreyasee Raj; Editing by Shailesh Kuber)