Pulte Expects Sizable 2Q Loss

Bloomfield, MI, July 18, 2007--Homebuilder Pulte Homes said it expects to report a hefty loss from continuing operations for the second quarter, due to large charges and a worsening consumer environment.

The company said it will report a loss from continuing operations between $2 and $2.10 per share, including impairments, land-related charges and restructuring charges.

The company previously expected to either break even for the quarter or report a loss of up to 10 cents per share. But, Pulte said that estimate didn't include any of the charges.

Higher mortgage rates and tighter lending standards have cut into demand for new homes, hurting Pulte and other big homebuilders such as D.R. Horton, Lennar, Centex and Toll Brothers.

Shares of those five companies are down sharply this year, with Pulte falling 36 percent from its 52-week high of $35.56 reached on Feb. 1 to close at $22.71 Tuesday. It lost an additional 71 cents a share in electronic after-hours trading.

Pulte said Tuesday that it expects to record impairments and land-related charges of about $1.85 to $1.92 per share, to reflect the decreased value of unsold homes on its books and for walking away from deposits on land it no longer wants to buy.

Pulte also will record a charge of about $40 million, or 10 cents per share, for restructuring costs.

The company said the difficult housing environment cut into new orders, which were down 20 percent year-over-year.

The company will report its second-quarter earnings results on July 25.