Pulte reports record earnings

Tuesday, July 23, 2002 | 11:16 a.m.

Michigan-based Pulte Homes Inc., the nation's third-largest home builder and the second-largest home builder in the Las Vegas Valley, today reported record financial results for the second quarter.

The home builder's net income in the second quarter was $90.4 million, or $1.45 a share. That's a 49 percent increase from the same quarter a year ago, when net income was $60.6 million, or $1.40 a share.

"The decline in the market is sending people to more tangible investments such as a home, although if the decline continues it could weaken consumer confidence and impact their willingness to make big-ticket purchases," David Weaver, a home-building analyst at Legg Mason Wood Walker Inc. told Bloomberg News.

Revenues in the second quarter rose 59 percent over the same quarter a year ago, from $1.1 billion to $1.7 billion. The company attributed its revenue increase to expanded business resulting from its merger in July 2001 with the Del Webb Corp.

Pulte's second-quarter home-order backlog -- a key indicator of a home builder's performance in six to 12 months -- reached 12,950 homes with an estimated sales value of $3.3 billion, up from 8,791 homes with an estimated sales value of $2 billion at the end of the second quarter in 2001.

Following the merger of Pulte and Del Webb last year, the combined entity took over the No. 2 spot in number of local home closings. Together, the two sold 2,400 homes in 2001. The company has more than 750 employees in the valley.

Pulte's stock was up almost 7 percent in early trading, from $40.82 at the market's close Monday to $43.50 at mid-morning today.