Pulte Group returns to profit

05 August 2010

Pulte Group, one of the United State's biggest home-builders, reported second quarter sales of US$ 1.3 billion, up +92.4% on the US$ 678 million recorded 12 months ago. In line with the upturn in sales the company turned a -US$ 189 million loss for the second quarter of last year to a US$ 76 million profit for the quarter this year.

A statement said that following the August 2009 merger with Centex Corporation, revenue from home sales reflected a doubling in closing volumes, up to 5030 homes. This was partially offset by a -4% decrease in the company's average selling price, down to US$ 251000.

Chairman, president and CEO Richard Dugas Junior said, "The second quarter results demonstrate ongoing progress in driving key business initiatives, along with the expected benefits from last year's Centex merger."

Mr Dugas Junior said that new home orders for the second quarter increased +25% to 4218 homes, while cancellations remained static on the first quarter at 18.2%, down from 21.7% last year. The backlog at the end of the quarter stood at 5644 homes with a value of US$ 1.6 billion, up +44% on the 3916 homes valued at US$ 1.1 billion for the corresponding period last year.

"Recent buyer demand has been stable, albeit at very low levels after the pull back experienced following the expiration of the federal tax credit at the end of April," said Mr Dugas. "While it is reasonable to expect a modest seasonal pick up in the second half, long-term we believe that any significant housing recovery will require a stronger economy, higher employment levels and greater overall consumer confidence."

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