(Rewrites first paragraph, updates shares, adds analyst
comment, executive quote)
NEW YORK (Reuters) - No. 2 U.S. homebuilder
PulteGroup Inc posted its first profit since 2006 and
solidly beat analysts' estimates for the second quarter,
sending shares up 2 percent.
Pulte reported a net profit of $76 million, or 20 cents per
share, compared with Wall Street estimates of a loss of a
penny, according to Thomson Reuters I/B/E/S.
The results included $82 million in benefits related to
income taxes but also $45 million in charges on land and
Last year, PulteGroup posted a loss of $189.5 million, or
74 cents per share. The company had also recorded a net loss in
the first quarter.
Revenue almost doubled to $1.31 billion.
The Bloomfield, Michigan-based company said demand had
stabilized at a low level after declining following the April
expiration of a U.S. tax credit for first-time homebuyers.
Orders rose 25 percent to 4,218 in the quarter, flat with the
But Credit Suisse analyst Dan Oppenheim sees a 13 percent
decline in orders in the third quarter due to the weakness in
"Our industry continues to face incredibly low demand,"
said Chief Executive Richard Dugas during a conference call
with analysts. "Right now the industry's biggest issue is a
lack of buyers."
Pulte's rivals, such as No. 1 D.R. Horton Inc and
The Ryland Group Inc reported a drop in orders in their
Pulte's shares were up 2 percent at $8.60 in mid-morning
trading on the New York Stock Exchange.
(Reporting by Helen Chernikoff and Scott Malone, editing by