Improving conditions in the housing market and cost-cutting boosted Home Depot to a fourth-quarter profit.

The world’s largest home improvement retailer says sales of paint and flooring and plumbing items led to earnings of more than $340 million. The result was better than analysts’ expectations by at least 3 cents-a-share. It was only a year ago Home Depot lost $50 million.

The report of a profit spike for the Atlanta-based company follows that of rival Lowe’s on Monday. Both retailers are seeing the effects of brighter housing conditions -- if only slightly -- as consumers slowly begin to take-on improvement projects.

Home Depot says it will boost its quarterly dividend for the first time in four years. And its profit forecast for this year is above what analysts predict.

Tags: Georgia, business, Atlanta, Home Depot, home improvement, housing market, earnings