Homebuilder Pulte Sees Continuing Challenges

Bloomfield Hills, MI, Nov. 5, 2009--Pulte Homes reported a net loss of $361.4 million, or $1.15 a share, compared with a year-earlier loss of $280.4 million, or $1.11 a share.

Part of the greater loss was due to the merger with Centex.

The transaction, which closed in August, created the largest home builder in the U.S., pushing competitor D.R. Horton Inc. to second place.

The "results reflect a home-building industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support home buyer demand," Richard J. Dugas, the combined builder's chairman and chief executive, said in the earnings release.

"Challenges remain, however, as economic weakness, foreclosures, rising unemployment and recent uncertainty over the expiration of the federal tax credit continue to influence buyer behavior."

Half of the latest quarter's results included Centex. Total revenue dropped 30% to $1.09 billion as closings declined 23% and the average selling price fell 10%.