Pulte Homes, Centex, Narrow Losses in Quarter

Bloomfield Hills, MI, May 5, 2009--Pulte Homes reported a quarterly net loss of $514.8 million, or $2.02 per share, compared with a $696.1 million net loss for the prior year first quarter, or $2.75 per share.

Consolidated revenues for the quarter were $587.4 million, a decline of 59% from prior year quarter revenues of $1.4 billion.

“The operating environment for housing remained very difficult during the first quarter of 2009,” said Richard J. Dugas, Jr., CEO of Pulte Homes.

“The housing market continues to face rising unemployment, tight mortgage availability, increased foreclosure activity and declining home prices, all putting negative pressure on buyer demand."

Pulte said its announced merger with Centex is proceeding on schedule for a third quarter 2009 closing, and a transition executive committee has been formed that is focused on planning for a seamless and successful integration.

Revenues from homebuilding settlements in the first quarter decreased 60% to $564.7 million, compared with $1.4 billion in last year’s first quarter. The change in revenue for the quarter reflects a 55% decrease in closings to 2,147 homes, and an 11% decrease in average selling price to $263,000.

Net new home orders for the first quarter were 3,022 homes, a decline of 44% from the prior year first quarter, and a 71% sequential increase from the fourth quarter of 2008. The cancellation rate improved to 21% for the first quarter of 2009 compared with 47% for the fourth quarter of 2008 and 28% for the first quarter of 2008.

Meanwhile, homebuilder Centex Corporation said it had a loss from continuing operations of $3.26 per share for the fourth quarter ended March 31, and a loss of $11.58 per share for fiscal year 2009.

Total revenues decreased 54% to $3.83 billion for the year as home closings fell 47 percent ot 14,434. The company reduced the number of lots it owns to 64,334.

"Housing markets remained challenged throughout the quarter, with the positives of historic affordability and low interest rates offset by rising foreclosures and high resale inventories," said CEO Timothy R. Eller.

Fiscal fourth-quarter revenues were $823 million, 64% lower than the same quarter last year. The loss from continuing operations for the fourth quarter was $406 million, narrower than last year's fourth-quarter loss of $908 million, or $7.34 per diluted share.

Fiscal year 2009's revenues were $3.83 billion, 54% lower than the $8.28 billion recorded in fiscal year 2008. .

For fiscal year 2009, home building revenues were $3.64 billion, 54% lower than last year. The reduction in revenues was a result of a 47% decrease in closings and a 10% decrease in average sales price to $247,900.