Pulte Posts 2Q Loss

Bloomfield, MI, July 26, 2007-- Pulte Homes posted a second-quarter loss as revenue dropped 40% amid the nation's deepening housing slump.

The downsizing company reported a loss of $507.6 million, or $2.01 per share, for the period ended June 30, compared with a profit of $243 million, or $0.94 per share, in the same period last year.

Revenue dropped to $2.02 billion from $3.36 billion in the second quarter of 2006.

Analysts expected a loss of $2.04 per share on revenue of $2.04 billion. Pulte said last week it expected to report a loss of $2 to $2.10 per share from continuing operations, including impairments and land-related and restructuring charges.

The losses were driven by nearly $750 million in pretax charges, or $1.87 per share after taxes, on adjustments to land inventory, land held for sale and the write-off of deposits and pre-acquisition costs for land transactions Pulte said it no longer plans to pursue.

For the first half of the year, Pulte lost $593.2 million, or $2.35 per share. It earned $506.5 million, or $1.95 per share, between Jan. 1 and June 30, 2006.

President and Chief Executive Richard J. Dugas said the homebuilding industry "continues to face an extremely difficult environment that includes record existing and new home inventory levels, intense price competition and weak consumer sentiment for housing.

"Pulte continues to focus on reducing its land and speculative home portfolio, and properly adjusting overhead spending to put us in the best position to navigate through this continued severe downturn," he said.

Pulte announced in May it would cut about 1,900 jobs, about 16% of its work force, to save an estimated $200 million annually before taxes. It said Wednesday it incurred a pretax charge of approximately $40 million during the second quarter for the restructuring, worth about $.10 a share.

The company reported net new orders for the second quarter of 7,532 homes, valued at $2.42 billion, compared with 9,455 homes worth $3.12 billion last year. It closed 5,938 homes in the quarter, down 40% from the prior-year period, and the average selling price fell 4% to $320,000.