Real Estate

PulteGroup earns highest third-quarter result since 2006

PulteGroup (PHM) earned $117 million in Q312, or 30 cents a share. A year earlier, the company reported a net loss of $129 million, or 34 cents a share.

Third quarter earnings are the highest for PulteGroup since Q306. The company’s backlog is also the highest dollar value since Q208.

On a unit basis, the backlog was up 49% to 7,686 homes with a value of $2.2 billion. The backlog year prior was 5,145 homes with a value of $1.4 billion.

Chief executive officer Richard Dugas Jr. of PulteGroup said in a statement that the company’s increase in new home sales is reflective of the U.S. housing industry and its improvement over the past nine months of 2012. 

“In past cycles, the U.S. housing industry proved to be a powerful engine that could help drive the economy forward and accelerate the pace of a recovery,” he said. “A similar scenario could again be unfolding, as the industry is responding to increased sales by hiring additional workers and purchasing more building materials.”

“While we are mindful of any potential impact from global or domestic economic issues, we are optimistic that the combination of ever higher rental rates, record low interest rates and limited housing supply can continue to support the improved housing demand,” he added.

Dugas also added that PulteGroup increased its 2012 land spend by $90 million to $1 billion.

The company’s 3Q increased 12% from the year prior to $1.2 billion. Higher revenue was also driven by a 6% increase in average selling rice to $279,000 alongside a 5% increase in closings to 4.418 homes.

New orders for the quarter totaled 4,544 homes valued at $1.3 billion with a 27% increase. The mortgage capture rate for the quarter also increased to 83% from 73% the year prior.

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