Del Webb profit surges on strong demand for homes

Thursday, April 22, 1999 | 10:50 a.m.

Del Webb Corp. of Phoenix, a major homebuilder in Las Vegas, today reported net earnings of $12.5 million or 66 cents per share for its third quarter ended March 31. That's up 66 percent from the $7.5 million or 40 cents earned in the year-ago quarter.

Revenues increased 27 percent to $324.4 million.

Del Webb reported record net new orders for the third quarter ended March 31 of 2,522 units, up 30 percent. In Las Vegas, Del Webb reported 378 orders during the quarter at its Sun city communities, up from 308 in last year's third quarter. The company reported 149 orders in Nevada for family homes, up from 108. And Del Webb took 60 orders at its Nevada country club division. "The strong order rate contributed to a significant increase in the company's backlog of homes under contract but not yet delivered, which rose 36 percent and surpassed the billion dollar level for the first time ever. The company's backlog at March 31 was 4,527 units, representing an aggregate contract amount of $1.03 billion," Del Webb said.

Home closings for the third quarter increased 19 percent to 1,513 units. Chief Executive Phil Dion said the nation's strong resale housing market and higher home prices are stimulating the housing industry's retirement home sector.

"We continue to see good appreciation and record-breaking resale rates nationally and that is providing our customers with the opportunity to move their retirement plans forward," Dion said. "I am also very excited about our customers' reception to our Sun Cities in Huntley, Ill., and Lincoln, Calif., as well as our Anthem communities near Phoenix and Las Vegas."

Anthem, near Phoenix, took 409 orders during the final 32 days of the quarter after opening Feb. 28.

Sun City at Huntley near Chicago had 130 net new orders.

"Our research indicated strong demand for the Sun Cities lifestyle in this region and thus far, it is proving to be quite accurate," Dion said.