PulteGroup Q3 loss narrows
Bloomfield Hills, Mich.-based PulteGroup posted a third-quarter net loss of $129 million, compared with a 2010 third-quarter net loss of $995 million.
Revenues from home sales totaled $1.1 billion in the third quarter ended Sept. 30, an increase of 7% from prior-year revenue of $1 billion. The company cited a 9% increase in unit closing volumes to 4,198 homes, partially offset by a 1% decrease in the company’s average selling price to $262,000 for the higher revenues.
"I am pleased to report that PulteGroup’s operations, excluding any impact from the goodwill impairment or tax gain in the quarter, returned to profitability for this quarter despite a housing demand environment that remains at historically low levels," said Richard Dugas Jr., PulteGroup chairman, president and CEO.
"Our results were achieved through a combination of higher closings, improved margins and reduced SG&A expenditures. I am particularly pleased with the progress we continue to make in improving our home-building gross margin, along with the tangible results from our efforts to reduce the company’s cost structure and to more effectively allocate capital to projects that generate improved financial returns."
Net new home orders for the third quarter were 3,564 homes, flat compared with the prior year. PulteGroup’s quarter-end backlog was 5,143 homes valued at $1.4 billion, compared with a prior-year backlog of 5,345 homes valued at $1.4 billion.
For the nine months ended Sept. 30, PulteGroup reported a net loss of $224 million, compared with a net loss of $931 million in the prior-year period. Revenues from home sales for the period were $2.8 billion, compared with prior-year revenues of $3.3 billion. Lower revenues for the period were driven by a 14% decrease in the number of homes closed and a 1% decrease in average selling price to $254,000.
NLBMDA announces new leadership team
San Antonio — The National Lumber and Building Material Dealers Association (NLBMDA) has announced its new leadership team installed on Oct. 26 at the ProDealer Industry Summit.
At the association’s annual meeting, the NLBMDA board of directors elected Cally Coleman Fromme, executive VP of Zarsky Lumber, as the association’s new chair, replacing outgoing chair Joe Collings of Ferguson Lumber. Fromme is the first woman to lead the association in its 94-year history.
"For more than 90 years, the NLBMDA has been the voice of the building material industry working to promote, protect and advance the interests of dealers nationwide. I am extremely proud to be carrying on the legacy of my predecessors working to make our industry stronger, while dealing with the many challenges we are facing in this difficult economic climate," Fromme said. "The housing and building industry is particularly challenged by the current political climate, and we will be promoting this industry, educating and assisting legislators, and being ‘at the table’ when legislation and regulations are being formulated. In unity with our manufacturers, producers and state associations, the NLBMDA is our effective voice on Capitol Hill at a time when our experienced voice of reason and common sense needs to be clear and strong."
Fromme previously served as president of the Lumbermen’s Association of Texas and Louisiana.
The other members of the 2011-2012 NLBMDA Executive Committee are:
• Chair-Elect: Chuck Bankston, Bankston Lumber, Barnesville, Ga.;
• First Vice Chair: Chris Yenrick, Smith-Phillips Building Supply, Winston-Salem, N.C.;
• Second Vice Chair: J.D. Saunders, Economy Lumber, Campbell, Calif.;
• Treasurer: Linda Nussbaum, Kleet Lumber Co., Huntington, N.Y.;
• Manufacturers & Services Council Chair: Bob Harden, Dow Building Solutions, Jenkintown, Pa.;
• Federated Association Executives Chair: Jim Moody, Construction Suppliers Association, Tyrone, Ga.;
• Immediate Past Chair: Joe Collings, Ferguson Lumber, Rockville, Ind.; and
• President: Michael O’Brien, NLBMDA, Washington, D.C.
The ProDealer Industry Summit is co-sponsored by the NLBMDA and Home Channel News.
USGBC president elected chair of World Green Building Council
President, CEO and founding chair of the U.S. Green Building Council (USGBC) Rick Fedrizzi has been elected chair of the World Green Building Council (WorldGBC). The WorldGBC is a coalition of green building councils from 89 countries.
“I’ve watched in awe as the green building movement has grown on a global scale — as people from widely different backgrounds, countries and industries have united under a common commitment to building a healthier, more sustainable world,” Fedrizzi said. “I’m humbled to be a part of this massive movement, and honored to serve the WorldGBC and its global members.”
As WorldGBC chair, Fedrizzi plans to raise global awareness of the WorldGBC while advancing the voice of each country.
Fedrizzi was named president and CEO of the USGBC in 2004, following 25 years as a Fortune 500 executive.
Founded in 1999, WorldGBC fosters and supports new and emerging green building councils by providing them with the tools and strategies to establish strong organizations and leadership positions in their countries.