PulteGroup Q3 loss narrows

Bloomfield Hills, Mich.-based PulteGroup posted a third-quarter net loss of $129 million, compared with a 2010 third-quarter net loss of $995 million.

Revenues from home sales totaled $1.1 billion in the third quarter ended Sept. 30, an increase of 7% from prior-year revenue of $1 billion. The company cited a 9% increase in unit closing volumes to 4,198 homes, partially offset by a 1% decrease in the company's average selling price to $262,000 for the higher revenues.

"I am pleased to report that PulteGroup's operations, excluding any impact from the goodwill impairment or tax gain in the quarter, returned to profitability for this quarter despite a housing demand environment that remains at historically low levels," said Richard Dugas Jr., PulteGroup chairman, president and CEO.

"Our results were achieved through a combination of higher closings, improved margins and reduced SG&A expenditures. I am particularly pleased with the progress we continue to make in improving our home-building gross margin, along with the tangible results from our efforts to reduce the company's cost structure and to more effectively allocate capital to projects that generate improved financial returns."

Net new home orders for the third quarter were 3,564 homes, flat compared with the prior year. PulteGroup's quarter-end backlog was 5,143 homes valued at $1.4 billion, compared with a prior-year backlog of 5,345 homes valued at $1.4 billion.

For the nine months ended Sept. 30, PulteGroup reported a net loss of $224 million, compared with a net loss of $931 million in the prior-year period. Revenues from home sales for the period were $2.8 billion, compared with prior-year revenues of $3.3 billion. Lower revenues for the period were driven by a 14% decrease in the number of homes closed and a 1% decrease in average selling price to $254,000.