Pulte Reports 1Q Loss

Bloomfield Hills, MI, April 26, 2007–Pulte Homes reported a loss of $85.7 million in the first quarter amid slumping closings on new homes and a massive inventory.

The loss for the period ended March 31 represented $0.33 per share, compared with net income of $262.6 million, or $1.01 per share, for the same period last year. The company’s consolidated revenue of $1.9 billion declined 37 percent from the prior-year revenue of $3 billion.

Analysts had forecast a loss of $0.37 per share, according to a survey by Thomson Financial.

The company’s homebuilding revenues of $1.8 billion in the first quarter decreased 38 percent from $2.9 billion recorded a year ago. The drop reflected a 37 percent decline in home closings and a 2 percent decrease in average selling price to $330,000.

The company last week had predicted the loss and reported a preliminary loss from continuing operations of $0.34 to $0.38 per share, including about $0.32 to $0.34 per share in losses from land-related charges and the reduced value of assets.

“Overall, the homebuilding environment remained challenging during the first quarter of 2007, as elevated inventory levels combined with weak consumer confidence for housing continue to place pressure on results,” Richard J. Dugas Jr., Pulte’s president and chief executive officer, said in a statement. “During this period of market weakness, Pulte continues to focus on maintaining a healthy balance sheet and adjusting our house and land inventory levels to better match current market conditions.”

Pulte, which operates in 50 markets in 26 states, reported net orders for 8,499 new homes valued at $2.9 billion, both down 21 percent from the same period of 2006. It said it had a backlog of 13,334 homes valued at $4.7 billion, compared with 19,940 homes valued at $7.1 billion a year prior.