Pulte narrows 2Q loss on inventory, land charges

The Bloomfield Hills, Mich.-based company said it lost $158.4 million, or 63 cents per share, in the three months ended June 30. That compares with a loss of $507.6 million, or $2.01 per share, in the same period last year.

The latest quarter includes pretax charges of $220.1 million to write down the value of inventory and land on its books, and a tax benefit of $56.8 million.

Revenue dropped 20 percent to $1.63 billion from $2.02 billion in the second quarter of 2007.

Analysts surveyed by Thomson Financial were expecting Pulte to post a loss of 69 cents per share on sales of $1.56 billion. The earnings estimates typically exclude one-time items.

"The operating environment for homebuilding continued to deteriorate during the second quarter of 2008," Richard J. Dugas Jr., Pulte's president and chief executive, said in a statement. "Buyer confidence remains under pressure, both from the weakness in housing as well as concerns about the overall economy.

Looking ahead, Dugas said the company expects it will break even or, at worst, post a net loss of 15 cents per share in the third quarter, not including any tax benefits or impairment charges.

The executive also said the company is aiming to have between $1.7 billion and $1.9 billion in cash by the end of the year.

Pulte shares rose 35 cents, or 2.8 percent, to $12.81 Wednesday. The stock rose 3 cents in extended-session trading after the company released its financial results.

Pulte, which was ranked the nation's fourth-largest home builder in 2007 by Builder magazine, has operations in 26 states.