Pulte Homes' Loss Less Than a Year Ago

Bloomfield Hills, MI, Feb. 4, 2009--Pulte Homes reported a fourth quarter net loss of $338.2 million, or $1.33 per share, compared with a $874.7 million net loss for the prior year fourth quarter, or $3.46 per share.

The loss included $380 million of pre-tax charges related to inventory impairments and other land-related charges. Consolidated revenues for the quarter were $1.7 billion, a decline of 43% from prior year quarter revenues of $2.9 billion.

"The homebuilding operating environment took yet another step down during the fourth quarter of 2008," said CEO Richard J. Dugas, Jr.

"During the quarter, consumers faced unprecedented levels of financial uncertainty that dramatically impacted purchases of all large-ticket items, especially homes. Sinking consumer confidence, excess foreclosure inventory and continued very tight mortgage availability put dramatic downward pressure on the homebuilding market. These factors, combined with an exceptionally weak economy and a surge in unemployment across all industries left many potential home purchasers on the sidelines to wait for a more certain view of the future."

Revenues from homebuilding settlements in the fourth quarter decreased 45% to $1.5 billion, compared with $2.8 billion in last year's fourth quarter. The change reflects a 37% decrease in closings to 5,474 homes, and a 13% decrease in average selling price to $278,000.

For the year, Pulte Homes' net loss was $1.5 billion, or $5.81 per share, compared with a $2.3 billion, or $8.94 per share, net loss for the prior year. Consolidated revenues for 2008 were $6.3 billion, down 32% from $9.3 billion for the prior year.