Pulte Homes and Centex, U.S. homebuilders that plan to combine this year, reported quarterly losses Tuesday that exceeded analysts’ estimates as the housing recession forced them to record $762 million in land write- downs and property expenses.
Pulte reported a first- quarter net loss of $514.8 million, or $2.02 a share. The median estimate in a Bloomberg survey was 55 cents. Centex reported a net loss of $402.8 million, or $3.24 a share, greater than the median estimate of $1.11 a share.
“The operating environment for housing remained very difficult during the first quarter of 2009,” Richard Dugas, chief executive of Pulte, said in a statement. “Although we are not ready to call a bottom in housing, we are nevertheless encouraged by our sales, traffic and cancellation trends seen in the first quarter that have continued into April.”
Pulte recorded $410.2 million in expenses to write down land values and property-related charges in the first quarter.
Centex had $352 million of impairments and land expenses, including write- downs on joint ventures.
New-home sales in March decreased 0.6 percent to an annual pace of 356,000, the Commerce Department said April 24.
The $1.3 billion purchase of Dallas-based Centex by Pulte will create the largest U.S. homebuilder by revenue and may help the companies survive the longest housing slump since the Great Depression.
Pulte, which builds houses in 25 U.S. states, will probably gain a bigger share of sales to first-time homebuyers when housing demand recovers. The sale is set to close in the third quarter.
