FORT WORTH, TX -- D.R. Horton, Inc. reported net income for its second fiscal quarter ended March 31, 2011 of $27.8 million, which included a non-cash tax benefit of $59.2 million. The quarterly results also included $14.3 million in pre-tax charges to cost of sales for inventory impairments and land option cost write-offs. Net income for the same quarter of fiscal 2010 was $11.4 million. Homebuilding revenue for the second quarter of fiscal 2011 totaled $733.1 million, compared to $896.8 million in the same quarter of fiscal 2010. Homes closed in the quarter totaled 3,516 homes, compared to 4,260 homes in the same quarter of fiscal 2010.
Net sales orders for the second quarter ended March 31, 2011 totaled 4,943 homes ($1.0 billion), compared to 6,438 homes ($1.3 billion) in the same quarter of fiscal 2010. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the second quarter of fiscal 2011 was 25%.
Donald R. Horton, Chairman of the Board, said, "Our sequential increases in net sales orders and backlog of 47% and 37%, respectively, reflect traditional seasonal demand. We increased our homes in inventory by 1,400 during the quarter to support the increased demand for new homes in the spring selling season.
"Market conditions in the homebuilding industry are still challenging, with high foreclosures, significant existing home inventory, high unemployment, tight mortgage lending standards and weak consumer confidence. However, housing affordability remains near record highs, interest rates are favorable and new home inventory is still very low. We continue to focus on providing affordable homes for the first-time buyer while having product available for move-up buyers, further adjusting our SG&A cost structure relative to our current sales pace, controlling our construction costs and contracting for new communities with attractively priced lots while maintaining our strong balance sheet."