PulteGroup swings to 2Q loss as home sales fall

BLOOMFIELD HILLS (AP) -- Homebuilder PulteGroup posted a second-quarter loss as sales fell in a national housing market that hasn't recovered from the recession. The Bloomfield Hills company said closings dropped 28 percent to 3,633 during the quarter and the average price fell 1 percent to $248,000. But last year's results were boosted by a tax credit for first-time buyers. The company also said that orders for new homes grew, and it remains on track to return to profitability in the second half of the year. "It is a positive sign that buyer demand appears to have stabilized following expiration of the homebuyer tax credit last spring, but residential construction volumes are at historically low levels and market conditions remain highly competitive," Chairman and CEO Richard Dugas Jr. said in a statement. PulteGroup said it lost $55.4 million, or 15 cents per share, compared with a profit of $76.3 million, or 20 cents per share, a year earlier. But the loss included $41 million worth of restructuring and debt repurchasing charges amounting to 11 cents per share. Without the charges, the company would have lost 4 cents per share, matching the average estimate of analysts polled by FactSet. Revenue dropped 29 percent to $927.2 million, short of Wall Street's $990.7 million estimate. Pulte said it cut $4 million in home-sales expenses, and it expects restructuring steps taken during the quarter to cut overhead by $50 million per year. The company reported 4,222 orders for new homes during the quarter, consistent with a year earlier but down 3 percent compared with the first quarter. But Pulte's quarter-end order backlog was up 2 percent to 5,777 homes. Last year the backlog was 5,644. Published: Fri, Jul 29, 2011