DR Horton cuts cash flow forecast 50 percent due to hurricanes

[September 25, 2017]  (Reuters) - D.R. Horton Inc <DHI.N>, the No.1 U.S. homebuilder, slashed its 2017 cash flow forecast from operations by half, citing delays because of the recent hurricanes.

 A house built by the D.R. Horton company is seen for sale in Arvada, Colorado January 24, 2017. REUTERS/Rick Wilking

The company's shares were down 3.7 percent at $35.52 in light premarket trading on Monday.

The homebuilder said it expected about $150 million of cash flow from operations, down from its previous forecast of about $300 million.

D.R. Horton also said it expected backlog conversion to be about 85 percent for the current quarter ending Sept. 30. The company had forecast it to be in the range of 88 percent to 90 percent.

The Fort Worth, Texas-based homebuilder said it expected selling, general and administrative expenses as a percentage of homebuilding revenues to be about 8.6 percent, compared to a previous forecast of 8.3 percent to 8.4 percent.

D.R. Horton, which mainly sells single-family homes, said it did not expect the recent hurricanes to have an impact on its preliminary 2018 forecast.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila)

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