Pulte Homes

Pulte Homes, Inc (NYSE: PHM) is a Bloomfield Hills, MI based company founded by Bill Pulte. Announced April 8, 2009, Pulte Homes has agreed to acquire Centex - creating the nation's largest homebuilding company in a stock transaction worth $3.1 billion, including $1.8 billion of debt. The companies said that, after the merger, Pulte shareholders will own 68% of the combined company, and Centex shareholders will own 32%. The two companies said they each have about $1.7 billion in cash, so that the newly combined company will have more than $3.4 billion in liquidity. Pulte completed the acquisition of Centex February 23, 2010.^[1]

Pulte's company motto is "Homeowner for Life," signifying that their business goals are to provide first time homeowners with their first homes and work them up through their signature communities up to an estate size home and even to their retirement homes. Pulte's customer devotion ranks high and records show that compared to other public homebuilders, their repeat buyer business is the highest.

The company has three main parts to its business model: Sales, Construction, and Customer Service. The company also has forward planning as the Land department as well as Finance. The Mortgage department also helps to support the main Sales department. All departments are expected to work together as a team to ensure that potential and actual homeowners are happy with their homes.

Operations

Pulte Homes operates through two segments, Homebuilding and Financial Services.

Homebuilding

The Homebuilding segment engages in the acquisition and development of land principally for residential purposes within the continental United States, as well as the construction of housing on such land targeted for the first-time, first and second move-up, and active adult home buyers. Pulte has subsidiaries that include Del Webb, which builds retirement communities, and Palm Beach Gardens-based Divosta Homes, a pioneer in the mass-market construction of cast concrete houses. Pulte Homes Leads All Homebuilders With Highest Customer Satisfaction Rankings in 11 Markets, As Reported by J.D. Power and Associates(R)

Financial Services

Financial Services segment provides mortgage banking and title operations services. The company serves its customers through its sales team and brokers. YOPLA

Key Statistics

• Pulte lost $2.25 billion in 2007, $1.47 billion in 2008 and $1.18 billion in 2009.
• Sixty-three percent of Pulte or Del Webb homeowners surveyed in Arizona, California and Nevada reported construction defects with their home.
• Pulte operates in 51 markets and 26 states.
• Pulte has built nearly 500,000 homes during its 57-year history.
• In 2006, the company delivered 41,487 homes in the U.S.
• Pulte's product mix includes single family detached and attached homes, condominiums and townhomes with an average sales price of $337,000 in 2006.
• Pulte Homes received a public reprimand, $500.00 fine and one year of probation from the South Carolina Department of Labor, Licensing and Regulation on May 26, 2010.
• Pulte Mortgage Corporation provides lending services.
• Founder William Pulte owns about 16% of the company as of the year 2009.
• Pulte Homes' West Coast branch is in Indio, California after buying a few communities built by the defunct Del Webb Company.

References

1. ^ Wotapka, Dawn (August 19, 2009).Pulte Buys Centex, Tries Branding Strategy.Wall Street Journal, p. B3.

External links

• Corporate Site