Homebuilder PulteGroup 1Q profit down 8 percent

BLOOMFIELD HILLS, Mich. (AP) -- The homebuilder PulteGroup posted an 8 percent drop in first-quarter profit Thursday as revenue from sales of land and new houses dropped.

The company said home closings fell 10 percent fewer houses in the first three months of the year. At the same time, the average selling price climbed 10 percent to $317,000.

Similarly, the company reported a 6 percent drop in net new home orders while the value of those orders increased 2 percent to $1.6 billion.

Recent reports on the housing market have raised concerns about a slowdown. The Commerce Department said Wednesday that sales of new homes dropped 14.5 percent in March to a seasonally adjusted annual rate of 384,000, the slowest pace in eight months.

In a statement accompanying the results, Richard Dugas, PulteGroup's CEO, said he sees signs that sales will pick up, with demand improving over the quarter. He said PulteGroup is confident that the housing industry "is in the early stages of a multiyear recovery."

PulteGroup Inc. reported first-quarter net income of $74.8 million, or 19 cents per share. That's a penny less than analysts expected and down from $81.8 million, or 21 cents per share, in the same period of last year. The company's income tax expense came to $55 million in this year's quarter, from $1 million the year before.

Sales of houses, land and financial services brought in $1.12 billion in revenue, down from $1.16 billion. Analysts predicted $1.17 billion, according to FactSet.

Shares in PulteGroup added 30 cents to $18.87 in morning trading.