BLOOMFIELD HILLS, Mich., May 29 /PRNewswire-FirstCall/ -- Pulte Homes
(NYSE: PHM) today announced a restructuring plan designed to reduce costs and
improve operating efficiencies. This step is in response to the challenging
operating environment that continues to exist in the U.S. homebuilding
industry. The restructuring will result in reducing the Company's workforce
by approximately 16 percent.
The Company expects to incur a previously unforecasted pre-tax charge in
2007 in the range of $40 million to $50 million in connection with the
restructuring plan, the majority of which will be incurred in the second
quarter of 2007. This charge primarily consists of severance costs and
includes facility related expenses associated with consolidating certain
administrative activities.
"The homebuilding environment remains difficult and our current overhead
levels are structured for a business that is larger than the market presently
allows," said Richard J. Dugas, Jr., President and CEO of Pulte Homes.
"Despite reducing our workforce by approximately twenty-five percent in 2006
and early 2007, we find it necessary at this time to further reduce overhead
expenditures, including, unfortunately, reducing an additional sixteen percent
of our jobs," Dugas said. "Workforce reductions are an extremely painful
reality in the industry at this time and we wish our former associates the
best."
As a result of this restructuring plan and other planned spending cuts,
Pulte expects a reduction in 2007 pre-tax expenditures of $90 million to $110
million, excluding restructuring charges. On an annualized basis, these
collective actions are expected to save the Company approximately $200 million
on a pre-tax basis.
Certain statements in this release regarding the restructuring plan and
total estimated charges and cost reductions associated with this plan are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are based on current
assumptions and expectations of the Company's management and are neither
promises nor guarantees but involve risks and uncertainties, both known and
unknown, that could cause actual results to differ materially from those
discussed in the forward-looking statements. Important factors that could
cause actual results to differ materially from those presently expected
include, but are not limited to, difficulties in successfully implementing the
restructuring plan, unanticipated delays in the implementation of the
restructuring plan, unanticipated costs and expenses relating to the
implementation of the restructuring plan, declines in the Company's revenues
and earnings, and adverse changes in general economic or market conditions.
See the Company's Annual Report on Form 10-K for the year ended December 31,
2006 for a discussion of other risks and uncertainties applicable to Pulte's
business. Pulte undertakes no duty to update any forward-looking statement,
whether as a result of new information, future events or changes in Pulte's
expectations.
About Pulte Homes
Pulte Homes, Inc., (NYSE: PHM), based in Bloomfield Hills, Mich., is a
FORTUNE 200 company with operations in 50 markets and 26 states. In 2006, it
delivered 41,487 homes and generated consolidated revenues of $14.3 billion.
During its 57-year history, the company has constructed nearly 500,000 homes.
In 2006, Pulte Homes received the most awards in the J.D. Power and
Associates(R) New Home-Builder Customer Satisfaction Study(sm), marking the
seventh-straight year Pulte achieved this distinction. Under its Del Webb
brand, Pulte is the nation's largest builder of active adult communities for
people age 55 and better. Its DiVosta brand is renowned in Florida for its
Built Solid(TM) building system and distinctive master-planned communities.
Pulte Mortgage LLC is a nationwide lender offering Pulte customers a wide
variety of loan products and superior service.
Websites: http://www.pulte.com; http://www.delwebb.com;
http://www.divosta.com
Company Contacts
Investors: Calvin Boyd
(248) 433-4527
email: calvin.boyd@pulte.com
Media: Mark Marymee
(248) 433-4648
email: mark.marymee@pulte.com
SOURCE Pulte Homes
-0- 05/29/2007 P
/CONTACT: Investors, Calvin Boyd, +1-248-433-4527, calvin.boyd@pulte.com,
or Media, Mark Marymee, +1-248-433-4648, mark.marymee@pulte.com, both of Pulte
Homes/
/Web site: http://www.pulte.com
http://www.delwebb.com
http://www.divosta.com /
(PHM)
CO: Pulte Homes
ST: Michigan
IN: CST
SU: RCN
KK
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5975 05/29/2007 19:19 EDT http://www.prnewswire.com
