Pulte Homes loss widens in fourth quarter

Bloomfield Hills, Mich.-based home builder Pulte Homes posted a loss of $874.7 million for the fourth quarter ended Dec. 31, 2007, compared to a loss of $8.4 million in the same quarter last year. For the full year, the company swung to a loss of $2.25 billion, compared to earnings of $687 million in 2006.

“The challenging market conditions that plagued the home-building industry for the first nine months of 2007 worsened in the fourth quarter,” said Richard J. Dugas, Jr., president and CEO of Pulte Homes. “Levels of new and existing-home inventory remain elevated, buyer demand for new homes continues to be weak and mortgage availability is still a problem for many prospective home buyers.”

The company also showed net sales of $2.9 billion for the fourth quarter of last year, down 34 percent from the same quarter of 2006 of $4.4 billion.

Net sales for the year were $9.3 billion, down 35 percent from $14.3 billion for 2006.

The company closed 8,714 homes in the fourth quarter, down 31 percent from the same quarter last year, with average sales price per home at $319,000, down 6 percent from the fourth quarter last year.

New orders for the quarter were 4,562, down 29 percent from the fourth quarter in 2006. The company also projects a first-quarter net loss of 15 cents to 30 cents per share.

Want to read more?
This content is available only to registered users. Log in to read the rest of this article or create a free account.
© 2014 Home Channel News. All Rights Reserved.