Homebuilders Pulte, Centex See Increasing Orders

Bloomfield Hills, MI, Aug. 4, 2009--Pulte Homes Inc. and Centex Corp., which plan to combine to form the country's largest homebuilder, both reported that orders increased during the first half of the year.

Industry-wide, new home sales are up almost 17 percent from January, and construction of homes and apartments is almost 20 percent higher, according to Commerce Department reports.

"Although year-over-year performance numbers for the second quarter show the market stress, sequentially, we have seen some positive signs ...," Richard J. Dugas, Jr., Pulte's president and chief executive, said in a press release.

Still, builders continue to face headwinds from foreclosed homes, high inventory levels, tight homebuyer credit, low consumer confidence and job losses.

Michigan-based Pulte lost $189.5 million, or 74 cents a share, in the three months ended June 30. That compares with a loss of $158.4 million, or 63 cents a share, in the same period a year ago.

Total revenue dropped by 58 percent to $679 million.

Pulte's completed home sales dropped by more than half from a year ago to 2,500 homes. The average selling price of its homes fell by 9 percent to $261,000.

New home orders dropped by 34 percent from a year ago to 3,367, but jumped 11 percent since the first quarter.

Dallas-based Centex, meanwhile, posted a profit in its fiscal first quarter of $85 million, or 68 cents a share, thanks to a hefty $407 million tax gain. Excluding the one-time tax gain, the builder lost $322.2 million, or $2.63 a share. In the year-ago period, Centex lost $150 million, or $1.21 a share.

Revenue declined by nearly half from a year earlier to $573.9 million.

New home orders slipped 32 percent from a year earlier to 2,871, but improved slightly over the 2,843 orders in the three months ended in May.

Completed home sales fell by 42 percent to 2,297 homes, while the average price of a Centex home slipped 10 percent to $237,085.