Homebuilder Pulte Swings to Loss in Quarter

Bloomfield Hills, MI, July 28, 2011 -- Homebuilder PulteGroup, Inc. reported a second quarter net loss of $55 million, or $0.15 per share, compared with net income of $76 million, or $0.20 per share, in the prior year.

"The 2011 U.S. housing market continues to operate within the range of expectations we projected at the beginning of the year," said CEO Richard J. Dugas.

"It is a positive sign that buyer demand appears to have stabilized following expiration of the homebuyer tax credit last spring, but residential construction volumes are at historically low levels and market conditions remain highly competitive. In this operating environment, we are focused on reducing our construction and overhead costs and enhancing our product offerings."

Revenue from home sales in the second quarter decreased 29% from the prior year to $900 million. Lower revenue for the period was driven by a 28% decrease in closings, combined with a 1% decrease in average selling price to $248,000.

Net new home orders for the second quarter were 4,222, which was consistent with the prior year and down 3% compared with the first quarter of 2011.

For the six months ended June 30, PulteGroup reported a net loss of $95 million, or $0.25 per share, compared with net income of $64 million, or $0.17 per share, in the prior year period.