Pulte Homes Research

Topics: Mortgage loan, Mortgage, Income tax in the United States Pages: 75 (22532 words) Published: July 10, 2008
Pulte Homes, Inc.

Table of Contents

Company Analysis
1.History of Pulte Homes
2.What They Do Now
Lines of Business
Homebuilding Operations by Geographic Regions
Customer Service
Sources of Supply
3. Financial Analysis
Financial Overview – Stock Overview
Sales, Revenues, Operating Income
Two Year Comparison
Ratio Analysis
Sizes, Varieties, Prices
Explanation of how Pulte makes money
Break Even Point
4.Industry Analysis
Description of industry
Critical Success Factors
5.External Environmental Analysis
6.Customer/Target Market Analysis
7.Competitor Analysis

Company Analysis
Material for this section came from Pulte Homes Website 2007; Pulte Homes’ Profile 2007; and Wikipedia Website 2007 Pulte Homes, Inc. is the largest homebuilder in the United States. The company also builds and sells homes in Mexico, Argentina, and Puerto Rico. Over the course of its half century in business, it has remained consistently profitable and has completed some 277,000 homes in the form of single-family residences, townhouses, condominiums, and duplexes. Pulte offers a wide variety of home models, and customers can vary the model's style by choosing from a number of facades and interior options. In addition, the company operates Pulte Mortgage, a financial services company that originates loans to buyers of Pulte properties. Inception and Rapid Growth: 1950s-70s

The company originated when William J. Pulte built his first house in Detroit, Michigan, in 1950. He incorporated his home-building activities in 1956 under the name William J. Pulte, Inc. In 1961, the company had one subdivision in Detroit; by 1969 it had 12 active subdivisions in six states. The company recorded $5 million in sales in 1964. That figure nearly tripled by 1967, and sales exceeded $20 million by 1968. Pulte entered the Washington, D.C., market in 1960, the Chicago market in 1961, and the Atlanta market in 1968. On March 4, 1969, William J. Pulte, Inc. was reincorporated through a merger with American Builders, Inc. of Colorado Springs, Colorado. The newly formed Pulte Home Corporation became a publicly owned company, and 200,000 shares of common stock were issued. The reorganization allowed Pulte entry into the low-cost Federal Home Administration (FHA) and Veterans Administration (VA) housing markets. At the same time, Pulte opened its first subdivision of medium-priced homes and began its first subdivision in the state of Virginia. The company also built high-priced conventionally mortgaged homes, student apartments, and turnkey multifamily housing. To control its construction costs, it implemented a computerized critical path program. During 1970 Pulte evolved from primarily a supplier of high-priced single family homes to a builder of single family homes across price ranges. For the first time, the company's sales of low- and medium-priced houses exceeded those of high-priced houses in both sales dollars and units. The company completed and delivered 1,000 housing units for the first time, reaching $31.2 million in sales. The company also increased its capital base by selling preferred convertible stock for the first time. In the early 1970s Pulte architects developed the first Quadrominium project, a single building that resembled large, custom-built, high-priced homes, but contained four separate two-bedroom units with separate entrances and garages. Pulte opened its first Quadrominiums in Chicago in 1971, providing buyers with homes for less than $20,000. To increase quality control and shorten the time period between the first rough carpentry work and the closing in of the exterior against the elements, Pulte started to make extensive use of component parts. It used rebuilt trusses; refinished cabinets, windows, and doors; and factory-built floor and wall sections. The company extended its presence into new housing markets and...
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