Pulte Homes reports reduced losses
By Steve Skinner23 October 2008
Pulte Homes, one of America’s largest home builders, reported a third quarter net loss of –US$ 280 million, a marked improvement on the –US$ 788 million net loss recorded in the third quarter of 2007.
The loss in the third quarter of 2008 included a pre-tax US$ 266 million write-down on land and stock values.
Overall revenues for the third quarter of US$ 1.6 billion represented a -37% drop on revenues of US$ 2.5 billion for the same period last year. However, pre-tax losses of –US$ 302 million compared favourably with the -USS$ 1.1 billion lost in the third quarter of 2007.
Net new home orders for the third quarter stood at 3008 properties, a -34% decline on the same period last year.
“The homebuilding operating environment deteriorated significantly during the third quarter of 2008,” said Richard J. Dougas Jnr, president and CEO of Pulte Homes. “The industry continues to be plagued by tighter mortgage availability, a growing number of foreclosures and a historically high supply of unsold homes.
“In the third quarter of 2008, uncertainty and volatility in the capital markets, higher unemployment and a weaker economy provided further downward pressure on the housing market. These factors caused buyer confidence to decline even more during the period.
“The company generated positive cash flow, ending the quarter with a US$ 1.2 billion cash balance and no debt outstanding under its revolving credit facility,” said Mr Dougas Jnr. “Pulte remains well-positioned to capitalise on opportunities once stability in the housing sector returns.”