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Homebuilding giant PulteGroup reported Q3 net income of $117 million or $0.30 per share. This was a big improvement from last year’s $0.34 net loss.Analysts were looking for just $0.20 per share.
Net new orders jumpedd 27% to 4,544 homes.
In the company’s press release, CEO Richard Dugas reiterates his bullishness on housing. But he also emphasises its impact for the rest of the economy:
“The quarter also showed a continuation of the stronger housing demand we have been experiencing since the start of 2012, as PulteGroup’s 27% increase in year-over-year signups was generated from 7% fewer communities. Although still well below historical levels, the U.S. housing market has realised a meaningful increase in the volume of new home sales for the first nine months of 2012.
“In past cycles, the U.S. housing industry proved to be a powerful engine that could help drive the economy forward and accelerate the pace of a recovery. A similar scenario could again be unfolding, as the industry is responding to increased sales by hiring additional workers and purchasing more building materials. While we are mindful of any potential impact from global or domestic economic issues, we are optimistic that the combination of ever higher rental rates, record low interest rates and limited housing supply can continue to support the improved housing demand. Within this environment, we continue to invest in the business appropriately, including having recently increased our approved 2012 land spend by $90 million to approximately $1.0 billion, while remaining focused on driving improved returns.”
That’s pretty bullish.