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Pulte Homes Updates Earnings Guidance for Its Third
Quarter and Full Year 2004; Company Announces Preliminary Third Quarter
Signups Increase 11%
BLOOMFIELD HILLS, Mich., Oct 4, 2004 (BUSINESS WIRE) -- Pulte Homes (PHM)
announced today that it expects third quarter earnings from continuing
operations to be in the range of $1.95 to $2.05 per fully-diluted share as
compared to previously issued guidance of $2.00 to $2.10 per share. For the
full year, the Company expects earnings from continuing operations to be in
the range of $7.40 to $7.70 per fully-diluted share. The Company's previous
guidance for the year had been in the range of $7.80 to $8.00. The change in
guidance is based primarily on lower than expected pricing and unit volume
from the Company's operations in Las Vegas.
Pulte also announced that preliminary signups for its third quarter ended
September 30, 2004 increased approximately 11 percent over the same period
last year. The Company experienced robust sales during the period in many of
its markets including the West region, which showed an increase of 3
percent, despite weakness at certain price points within the Company's Las
Vegas operations.
"Pulte's Las Vegas operations have raised prices aggressively, with some
communities implementing price increases well above the 50% increases
experienced in the broader Las Vegas market," said Richard J. Dugas, Jr.,
President and Chief Executive Officer. "Consumer acceptance of these
increases at certain price levels has apparently reached a ceiling,
suggesting that prices have become higher than what the market will support.
Pulte has already implemented actions to lower local market pricing to
better align the Company's operations with current market conditions."
Based on the lower sign up and closing volumes that Pulte expects to realize
from its Las Vegas operations, the Company has revised its earnings
guidance. "Pulte is in position to deliver greater than 50% year-over-year
growth in earnings per share," said Dugas. "These results, along with strong
new order rates we are experiencing in most of our regions, should enable
the Company to drive additional growth in 2005."
A conference call discussing market conditions will be held today, Monday,
October 4, 2004 at 6:00 p.m. (E.T.), along with a web cast live via
Pulte.com. Interested investors can access the call by dialing (800)
540-0559, pass code 7Pulte, or via the Company's home page at
www.pulte.com. The Company will issue
detailed financial results for its third quarter after the market close on
October 25, 2004.
Certain statements in this release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known
risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among other things, (1)
general economic and business conditions; (2) interest rate changes and the
availability of mortgage financing; (3) the relative stability of debt and
equity markets; (4) competition; (5) the availability and cost of land and
other raw materials used by the Company in its homebuilding operations; (6)
the availability and cost of insurance covering risks associated with our
business; (7) shortages and the cost of labor; (8) weather related
slowdowns; (9) slow growth initiatives and/or local building moratoria; (10)
governmental regulation, including the interpretation of tax, labor and
environmental laws; (11) changes in consumer confidence and preferences;
(12) required accounting changes; (13) terrorist acts and other acts of war;
and (14) other factors over which the Company has little or no control.
About Pulte Homes
Pulte Homes, Inc., (PHM) based in Bloomfield Hills, Mich., has operations in
45 markets across the U.S. Under its Del Webb (www.delwebb.com)
brand, the company is the nation's leading builder of active adult
communities for people age 55 and older. Over its history, the company has
constructed more than 370,000 homes. In 2004, J.D. Power and Associates
ranked Pulte Homes No. 1 in customer satisfaction in 14 U.S. markets, and
among the top three homebuilders in 23 of 25 total markets surveyed. J.D.
Power and Associates also named Pulte Homes the inaugural recipient of its
Platinum Award for Excellence in Customer Service among the nation's largest
new homebuilders in 2004. Pulte Mortgage LLC is a nationwide lender
committed to meeting the financing needs of Pulte Homes' customers by
offering a wide variety of loan products and superior customer service.
Websites: www.pulte.com;
www.delwebb.com
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