Construction in the United States remains attractive

DR HORTON INC (DHI), the largest builder of residential homes in the U.S., announced strong results for the quarter ended in March and confirmed that continues to improve and the housing construction sector in the United States.

Sales of u $ s 1,680 million, advanced 22% YoY and exceeded average expectations by almost 8%. Measured in physical units, the increase was 10% yoy to 6,194 homes, an increase of 10% in the sale price, which on average reached u $ s 278,900.

Gross margin increased 35% YoY and stood at 22.5% of sales (versus 20.4% in March 2013), but showed a slight decrease compared to the previous quarter, which could indicate that the process of rising prices stable costs is close to its limit. Administrative and general expenses of $ s 188 million grew 21% YoY; consequently, profits were $ s 131 million, or $ 0.38 per share s, an increase of 18% yoy and 11.7% exceeding the expectations of analysts. Another favorable quarter.

The company address expressed satisfaction with the performance, noting that conditions in the housing market remains positive, with a rate that varies according to the different regions, and that in the analyzed period was stronger in the East and the center of the country than in the West. Also considered that the extensive geographic presence DHI, the diversity of its products and the wide availability of favorable terrain, along with a strong balance sheet, he predicted additional improvements in the current semester. The backordered units sold increased by 5% to 10,059 homes, with a value of $ s 2,800 million and an annual increase of 18%.

DHI's financial situation is strong, with cash of $ s 931 million, construction started and completed by u $ s 2,864,000 and developed plots and developing u $ s 3.452 million, financed by trade payables of $ 1,100 s million and long term debt for $ s 3.638 million, maturing reasonably phased over ten years.

In short, a balance better than expected, and very positive projections of the firm. We add several analysts expect consolidation of the construction firms in the United States, by which large companies, with easy access to credit-Iran acquiring smaller, and that mergers between large companies will be carried out in a market today quite atomized. Beyond some nuances that policymakers consider carefully discussed the relevant construction market, which is great creator of jobs and economic activity multiplier.