This Day On The Street
Continue to site
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

PulteGroup 3Q Loss Widens On Charges, Tops Street


LOS ANGELES (AP) â¿¿ Summer's gone, but the worst housing demand homebuilders have seen in decades is dragging into the fall.

PulteGroup Inc. said Wednesday the lackluster demand trends the homebuilder saw in the July-September quarter extended into last month, and the company is planning for challenging industry conditions to continue.

"What we saw in the third quarter was an industry where demand continued to move along the bottom as buyers elected to remain on the sidelines," said Richard Dugas, the builder's chairman, president and chief executive.

The company, which posted a wider third-quarter loss because of hefty charges, said its new home orders slid 12 percent from a year ago and roughly 15 percent since the second quarter.

Shares in the Bloomfield Hills, Mich., company tumbled 62 cents, or 7.7 percent, to $7.45 in afternoon trading.

The builder's results highlight concerns that the housing market slide that began after federal homebuyer tax credits expired in April is far from over. Absent the government incentives â¿¿ and despite mortgage rates remaining at near-historic lows â¿¿ many would-be homebuyers are balking, put off by high unemployment, tight credit and uncertainty about home prices.

The U.S. said last month that home sales rose 6.6 percent from August to September, but the May-September period still clocked in as the worst for new home sales on records dating back to 1963.

In the midst of that decline in demand, several large homebuilders have reported, on average, a 30 percent annual decline in new home orders for the July-September quarter.

Last week, builder Meritage Homes Corp. said orders were down 36 percent from a year ago, while Ryland Group Inc. reported orders were down 37 percent.

PulteGroup said it will continue to cut direct construction and overhead costs and will lower its 2011 selling, general and administrative spending by about $100 million as it deals with softness in the housing market.

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs