PulteGroup posts Q3 net income of $117 million

Bloomfield Hills, Mich.-based PulteGroup reported third-quarter net income of $117 million, compared with a net loss of $129 million in the year-ago period.

Revenue from home sales in the third quarter ended Sept. 30 increased 12% from the prior year to $1.2 billion. Higher revenue for the period was driven by a 6% increase in average selling price to $279,000, combined with a 5% increase in closings to 4,418 homes.

Net new orders for the third quarter totaled 4,544 homes valued at $1.3 billion, an increase of 27% and 43%, respectively, over the prior year.

"We are extremely pleased with the progress PulteGroup continues to make as our third quarter results represent our highest quarterly earnings since the third quarter of 2006 and keep us on track for full-year profitability," said Richard Dugas Jr., chairman, president and CEO of PulteGroup.  "Our financial performance reflects improvements within our homebuilding operations which resulted in adjusted gross margins of 21.6%, an increase of 320 basis points over last year, and improved SG&A leverage as overhead expenses fell 80 basis points to 10.2% of home sale revenues.