Charges Bash Pulte Bottom Line
Pulte Homes (PHM) swung to a big third-quarter loss as the homebuilder recorded more than $1 billion in impairments and charges tied to the housing slump.
The Bloomfield Hills, Mich., company recorded a loss of $787.9 million, or $3.12 a share, compared with a year-ago profit of $190.2 million, or 74 cents a share.
The results were hit by $1.18 billion in pretax charges from land impairments, land-related charges and goodwill impairment.
Most builders have been recording such charges since the housing slowdown forced them to slash prices on homes. As a result, they have to mark down the value of land and housing inventory on their balance sheets to reflect that the inventory is no longer profitable.
(CTX), for one, also had nearly $1 billion in charges in its
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV