This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pulte Pares 1Q Loss And Now Expects Profit In 2010

ALEX VEIGA

LOS ANGELES (AP) â¿¿ PulteGroup Inc., the nation's largest homebuilder, said Wednesday it slashed its loss in the first quarter and forecast it would be profitable this year.

That would mark a major turning point for the company, which has posted a loss now for 14 consecutive quarters as the worst housing downturn in decades unfolded.

But management struck a confident tone Wednesday, saying it expects improved sales and fewer profit-destroying write-downs this year.

Assuming the housing industry remains stable, the company will remain profitable this year, said PulteGroup CEO Richard Dugas. He credited a more stable backlog of home orders and additional savings from its takeover of rival Centex Corp. last year.

"The expected benefits from last year's merger with Centex are clearly evident in the numbers," Dugas said. The combine company now has operations in 29 states and its Del Webb brand is the nation's largest builder of communities for adults age 55 and over.

Still, Dugas cautioned that a housing turnaround remains hampered by high unemployment, the end of homebuyer tax credits and more foreclosed homes hitting the market.

Many industry experts say the housing recovery could sputter in the second half of the year.

This spring, however, builders have seen orders improve as affordable prices, low mortgage rates and two federal tax credits lured homebuyers into the market.

Sales of new homes surged 27 percent in March, the first jump in four months and the strongest month since last July. Homebuilders Beazer Homes USA Inc. and D.R. Horton Inc. both reported an increase in net income and a bump in sales for their most-recently completed quarter.

PulteGroup said completed sales jumped 77 percent from a year ago while orders rose 43 percent. The builder also almost eliminated charges related to write-downs on land and other assets to $8 million from $410 million in the prior-year quarter.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
CTX $25.78 0.00%
BZH $17.53 0.00%
DHI $25.18 0.00%
AAPL $125.80 0.00%
FB $77.56 0.00%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs