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.
Congressional bill addresses safety in building codes
Testifying before Congress about a lack of safe building codes in some states, the Insurance Institute for Business & Home Safety urged legislators to pass a bill that would provide incentives for adopting updates to the International Residential Code (IRC).
“Every region of our country is vulnerable to one or more potentially devastating natural hazards, which is why improving disaster mitigation, preparedness, response and recovery must be a national priority,” said Julie Rochman, IBHS president and CEO. “HR 2069 is important legislation that provides a vehicle to put scientific knowledge about the proven benefits of building codes to work, which will significantly improve our nation’s safety and resilience.”
Also called the “Safe Building Code Incentive Act,” HR 2069 would provide qualifying states with an additional 4% of funding available for post-disaster assistance if they adopt and enforce the IRC from one of the last two cycles it was updated, which are 2012 and 2009.
Specifically, Rochman mentioned the importance of a continuous load path in the construction of residential and commercial buildings and the need for strapping to connect the roof to the foundation.
Rochman also showed the Transportation and Infrastructure Subcommittee a video of wood-frame houses being subjected to wind speeds and gusts up to 120 mph at the IBHS Research Center. During this test, the roof of the home built using conventional construction practices lifted off entirely under the force of about 95 mph winds. The loss of the roof caused total destruction of the home only moments later.
The IBHS recently evaluated the building codes in 18 hurricane-prone states along the Atlantic Coast and Gulf of Mexico. The resulting report, “Rating the States: An Assessment of Residential Building Code and Enforcement Systems for Life Safety and Property Protection in Hurricane-Prone Regions,” can be viewed by clicking here.
Russin Lumber expands shingle offering
Montgomery, N.Y.-based Russin Lumber is now carrying Eastern White Cedar shingles from Bardobec, a manufacturer located in Daaquam, Quebec. Russin will be carrying raw shingles in Extra, B and C grade and will also act as the exclusive distributor for Bardobec’s B-Chroma line of Prefinished shingles.
Bardobec has been manufacturing white cedar shingles for more than 25 years. All B-Chroma prefinished shingles are coated over 100% of the surface area of the shingle and are carefully dried using infrared ovens, according to the company.
“I’m so happy to add Bardobec’s high-end shingles to our stable of siding products,” said Jordan Russin, Russin Lumber VP. “Since Barbodec offers their B-Chroma line which utilizes PPG coatings, they’re a natural fit with the work we’ve been offering out of our own prefinishing facility.”
Russin has begun to receive Bardobec’s products into its Montgomery distribution center and is accepting orders for immediate delivery.
Russin Lumber is a manufacturer and distributor of building materials covering 13 Northeast and Mid-Atlantic states.