D.R. Horton reported a $1.3 billion loss in the second quarter -- the largest in the company's 30-year history.
The company had a net loss of $4.14 per share, the company announced Tuesday morning.
For the first half of the year, the company had a net loss of $1.4 billion. That is a $4.55 loss per share, the nation's largest homebuilder reported.
The loss took into account writeoffs for land and homes that were purchased or built but are less valuable now than when they were bought. The loss also reflected deposit money that the company put down for options to buy land that it no longer plans to purchase.
The Fort Worth-based homebuilder's challenge is to bring the company in step with a nationwide climate of reduced sales. The company sold 6,719 homes in the second fiscal quarter, compared to 9,792 homes a year ago.
Company executives have worked on reducing land positions, consolidating regional sales offices and reducing overhead costs in order to increase cash flow.
"Although market conditions in the homebuilding industry remain challenging, we continue to focus on reducing inventory and generating cash flow from operations," said Donald R. Horton, chairman of the board, in a statement.
In addition, D.R. Horton executives announced the retirement of Sam Fuller, the company's senior executive vice president. He will retire May 31.