Pulte Homes Suffers Eighth Consecutive Loss

Bloomfield Hills, MI, Oct. 23, 2008–Pulte Homes Inc., the third largest U.S. homebuilder, reported its eighth consecutive quarterly loss.

The third-quarter net loss narrowed to $280.4 million, or $1.11 a share, from $787.9 million, or $3.12, a year earlier. The loss was more than analysts estimated. Revenue fell 37 percent to $1.56 billion from $2.5 billion a year ago.

Construction of single-family homes fell in September to the lowest in 26 years as builders cut production to match vanishing demand. Mortgage rates are rising, unemployment is increasing and only the most-credit worthy homebuyers are able to borrow, just as the growth in foreclosures across the country adds to the inventory of homes for sale.

Pulte, the builder of Del-Webb homes for retirees, was projected to report a net loss of 53 cents a share.

The average price for a Pulte home in the second quarter fell 11 percent to $320,000. Pulte, founded in 1950 by William Pulte, the company’s largest shareholder, sold the most homes in the second quarter in Arizona, Nevada and New Mexico.