PulteGroup posts strong Q2
Bloomfield Hills, Mich.-based PulteGroup posted second-quarter net income of $42.4 million, compared with a net loss of $55.4 million in the year-ago period.
Total revenue from the second quarter ended June 30 totaled $1.07 billion, up 15% from $927.21 million in the second quarter of 2011. Higher revenue for the period was driven by an 8% increase in average selling price to $268,000, combined with a 5% increase in closings to 3,816 homes.
"Our second-quarter results showed significant gains as home-building operating margins expanded by more than 600 basis points, net income improved by $98 million, and we continued to benefit from our strategic pricing strategies, improved construction efficiencies and further reductions in finished spec home inventory," said Richard Dugas Jr., chairman, president and CEO of PulteGroup.
"Consistent with our focus on capital discipline, PulteGroup's 32% increase in second quarter signups were generated from 7% fewer communities. By using our existing land assets more efficiently, allocating capital more effectively and managing finished spec inventory more tightly, we continue to position the Company to deliver improved long-term returns."
Net income for the six months ended June 30 totaled $30.8 million, compared with a net loss of $94.9 million in the prior-year period.
Revenue for the six-month period totaled $1.95 billion, up 13% from $1.73 billion in the six-month period of 2011.