Pulte's Closings Slip in Q309, Despite Merger
Pulte Homes (PHM) lost $361.4m, or $1.15 per share, in Q309, compared to $280.4m, or $1.11 per share, in Q308. Results were impacted by $86.7m in charges and transaction costs associated with Pulte’s merger with Centex Corporation, and $163.8m in inventory impairments and other land-related charges. “Beyond the impact of the merger, Pulte’s Q3 results reflect a homebuilding industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support homebuyer demand,” said Pulte CEO Richard Dugas Jr. “Challenges remain, however, as economic weakness, foreclosures, rising unemployment and recent uncertainty over the expiration of the federal tax credit continue to influence buyer behavior.” Home sale closings totaled $1.1bn in Q309, down from $1.5bn in Q308. The decreased revenue was attributed to a decline in homes sold, 4,166, down 23% from Q308, and a 10% decrease in average selling price to $253,000. Revenue and closings for Q309 include Centex operations for the last six weeks of the quarter. Year-to-date through the end of September, Pulte’s net loss was $1.1bn, or $3.88 per share, compared to a net loss of $1.1bn, or $4.48 per share, during the same period of 2008. Write to Austin Kilgore.