Pulte 2Q Loss Widens On Lower Revenue, But Orders Improve From 1Q

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; [e-mail]