Pulte Homes Inc.'s (PHM) second-quarter loss widened due to
falling revenue, but the home builder said new orders climbed from
the first quarter, joining Centex Corp. (CTX) in reporting higher
orders sequentially.
The results come after Centex reported it swung to a fiscal
first-quarter profit amid a $410 million tax benefit while orders
edged up from the prior quarter. The companies are poised to become
the largest U.S. home builder once Pulte's $1.4 billion acquisition
of Centex is complete. On Monday, Pulte said the merger was on
track to be complete in the third quarter, with a shareholder vote
scheduled for Aug. 18.
Pulte reported a loss of $189.5 million, or 74 cents a share,
compared with a loss of $158.4 million, or 63 cents a share a year
ago. The latest results included $119.3 million in impairment and
land-related charges, while year-ago results included $220.1
million in similar charges, offset slightly by a $56.8 million tax
benefit.
Revenue slumped 58% to $678.6 million.
Analysts polled by Thomson Reuters expected a per-share loss of
57 cents on revenue of $647 million.
Net new-home orders in the quarter dropped 34% to 3,367 homes,
but grew 11% from the first quarter on 9% fewer communities.
Closings fell 54% to 2,500 homes as the average sales price dropped
9% to $261,000.
The backlog as of June 30 was valued at $1.1 billion, or 3,916
homes, down from $2.4 billion, or 8,254 homes, a year earlier. But
backlog grew by 28%, or almost 900 homes, from the first
quarter.
Pulte's shares were down a penny to $11.75 in after-hours
trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com