Builder Pulte Narrows Loss on Higher Revenues

Bloomfield Hills, MI, May 5, 2010--PulteGroup, Inc. reported a net loss of $12 million, or $0.03 per share, compared with a loss of $515 million, or $2.02 per share, for the first quarter last year.

PulteGroup's first quarter loss includes approximately $8 million of pre-tax charges related to inventory impairments and other land-related charges. For the prior year, comparable charges totaled $410 million.

Consolidated revenues for the quarter were $1.0 billion, an increase of 75% from first quarter 2009 revenues of $584 million.

"In our planning process for 2010, we assumed conditions in the U.S. housing industry would be comparable with the second half of 2009, with relatively stable demand and pricing," said CEO Richard J. Dugas, Jr.

"While expectations are for market conditions to remain relatively stable for the remainder of 2010, high resale inventory, particularly foreclosure inventory, expiration of the tax credit and weak consumer confidence could limit the pace of housing's recovery for several more quarters."

Revenue from home sales in the first quarter increased 73% to $977 million, compared with $565 million in the prior year. Higher revenue for the quarter reflects a 77% increase in closings to 3,795 homes, partially offset by a 2%, or $6,000, decrease in average selling price to $257,000.

Net new home orders for the first quarter were 4,320 homes, an increase of 43% from the prior year first quarter, and a 15% sequential increase from the fourth quarter of 2009.

The 18% cancellation rate for the quarter was down from the prior year first quarter rate of 21% and the fourth quarter 2009 rate of 26%.