PulteGroup (PHM) Returns to Profitability In Q2

August 4, 2010 11:02 AM EDT
PulteGroup Inc. (NYSE: PHM) said Wednesday that it returned to profit in the second quarter for the first time in more than three years, boosted by its acquisition of Centex Corp. and the purchases of homes before the expiration of the homebuyer tax credits.

The largest U.S. homebuilder reported second-quarter earn ings of $76.3 million or 20 cents per share, reversing a loss of $189.5 million or 74 cents per share in the same quarter last year.

Revenue for Pulte rose 92 percent to $1.31 billion in the three month period ended June 30 from $678.6 million last year. Prior year results were not adjusted for the acquisition of Centex.

On average, analysts had been looking for a loss of a penny from the company on revenue of $1.24 billion in the quarter.

Pulte added that new home orders rose 25 percent from last year, while its backlog rose 44 percent to 5,644 homes. The company said that the cancellation rate for its orders was 18.2 percent in the period, down from 21.7 percent last year.

"Recent buyer demand has been stable, albeit at very low levels, after the pull back experienced following expiration of the federal tax credit at the end of April,” said Richard J. Dugas, Jr., Chairman, President and CEO of Pulte. “While reasonable to expect a modest seasonal pick up in the second half of 2010, long-term we believe that any significant housing recovery will require a stronger economy, higher employment and greater overall consumer confidence."

Shares of Pulte are up 20 cents to $8.63 in early market movement Wednesday.

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