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PHM CORPORATION REPORTS INCREASED EARNINGS FOR THE FIRST QUARTER ENDED MARCH 31, 1993

 BLOOMFIELD HILLS, Mich., April 27 /PRNewswire/ -- PHM Corporation (PHM), (NYSE: PHM), (Contact: William J. Crombie, 313-647-2750) announced today its consolidated revenues and earnings for the first quarter ended March 31, 1993.
 Net income for the quarter ended March 31, 1993 was $15,868,000 or $.57 per share, compared with $9,497,000 or $.37 per share for the first quarter of 1992. However, as was previously announced, net income for the first quarter of 1993 included $5,000,000 or $.18 per share of income from the cumulative effect of implementing the new accounting standard for income taxes, FAS No. 109. Also as a result of implementing FAS No. 109, the Company recorded a 30 percent effective tax rate for financial statement purposes in the first quarter of 1993 (which resulted in tax expense of $4,658,000 or $.17 per share), compared with a 6 percent effective tax rate in the first quarter of 1992 (which resulted in tax expense of $650,000 or $.03 per share).
 On a pre-tax basis, for the quarter ended March 31, 1993, PHM's earnings increased 53 percent to $15,526,000, from $10,147,000 in the same quarter of 1992.
 Revenues from homebuilding operations in the first quarter of 1993 increased 38 percent to $249,895,000, from $180,460,000 in the first quarter of 1992. The increase resulted from a 39 percent increase in closings to 1,870 from 1,342 in 1992. Pre-tax income from homebuilding operations increased 280 percent to $9,212,000 in the first quarter of 1993, from $2,425,000 in the first quarter of 1992. The improvement in operating results was due principally to the volume increase and higher gross profit margins. Pre-tax profit as a percent of sales increased to 3.7 percent in the first quarter of 1993 from 1.3 percent in the same 1992 quarter.
 Also during the quarter ended March 31, 1993, net new orders increased 35 percent to $409,000,000 (2,950 units), from $304,000,000 (2,257 units) during the quarter ended March 31, 1992, which in turn increased 18 percent from the quarter ended March 31, 1991. Housing unit backlog at March 31, 1993 was a record high of $499,000,000 (3,496 units), and compares to housing unit backlog of $363,000,000 (2,587 units) at March 31, 1992.
 The Company's financial services subsidiaries (mortgage banking, financing and thrift operations) had pre-tax income of $7,041,000 for the quarter ended March 31, 1993, compared with $9,728,000 for the quarter ended March 31, 1992. In the first quarter of 1993, gains from the sale of mortgage collateral related to bond redemptions (PFCI) were approximately $4,187,000. There were no such gains in the first quarter of 1992. Additionally, the sale of thrift owned (First Heights Bank, fsb) mortgage-related securities resulted in gains of approximately $2,400,000 in the first quarter of 1993; such gains were approximately $9,800,000 in the same quarter of 1992.
 PHM is the parent of the Pulte group of companies. Pulte Home Corporation, one of the nation's largest builders, operates in 15 states and 25 markets across the country. ICM Mortgage Corporation has grown to become one of the nation's leading mortgage banks. First Heights Bank, fsb, provides a full range of banking and financial services in the Houston, Texas market.
 PHM Corporation
 Three Months Ended
 March 31,
 1993 1992
 (000's omitted, except per share data)
 CONSOLIDATED RESULTS:
 Revenues $ 315,585 $ 257,113
 Income before income taxes
 and cumulative effect
 of change in accounting
 principle 15,526 10,147
 Income taxes (4,658)(A) (650)
 After-tax income before
 cumulative effect of
 change in accounting
 principle 10,868 9,497
 Cumulative effect of change
 in accounting for
 income taxes 5,000(B) -
 Net income $ 15,868 $ 9,497
 Net income per share:
 After-tax income before
 cumulative effect of
 change in accounting
 principle $ .39 $ .37
 Cumulative effect of change
 in accounting for
 income taxes .18 -
 Net income $ .57 $ .37
 Shares used in per share
 calculations 27,858 25,415
 (A) Higher effective income tax expense rate in the first quarter
 of 1993, 30 percent versus 6 percent in first quarter of 1992
 due to implementation of new standard of accounting for income
 taxes, FAS No. 109.
 (B) Income results from implementation of new standard of
 accounting for income taxes, FAS No. 109.
 PHM Corporation
 Segment Data
 Three Months Ended
 March 31,
 1993 1992
 ($000's omitted)
 HOMEBUILDING OPERATIONS:
 Sales (settlements) $ 249,895 $ 180,460
 Income before income taxes $ 9,212 $ 2,425
 FINANCIAL SERVICES OPERATIONS:
 Revenues $ 65,082 $ 75,578
 Income (loss) before income taxes:
 First Heights Bank, fsb $ 3,405 $ 8,940
 ICM Mortgage Corporation (ICM) (2,058) (1,811)
 PFCI 5,694 2,599
 $ 7,041 $ 9,728
 CORPORATE; (Loss) before
 income taxes $ (727) $ (2,006)
 CONSOLIDATED RESULTS:
 Income before income taxes and
 cumulative effect of change
 in accounting principle $ 15,526 $ 10,147
 OTHER INFORMATION:
 Housing unit settlements:
 Mid-Atlantic 437 352
 Central 209 199
 Southeast 310 201
 Southwest 914 590
 1,870 1,342
 Mortgage banking (ICM) originations:
 Loans 2,812 3,271
 Principal $ 277,500 $ 320,300
 -0- 4/27/93
 /CONTACT: William J. Crombie of PHM Corporation, 313-647-2750/
 (PHM)


CO: PHM Corporation ST: Michigan IN: CST SU: ERN

JG -- DE035 -- 1564 04/27/93 16:11 EDT
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Date:Apr 27, 1993
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