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PULTE CORPORATION REPORTS THIRD QUARTER EARNINGS

 BLOOMFIELD HILLS, Mich., Oct. 20 /PRNewswire/ -- Pulte Corporation (formerly PHM Corporation), (NYSE: PHM), (Contact: Michael D. Hollerbach, 313-647-2750) announced today its consolidated revenues and earnings for the third quarter and nine months ended September 30, 1993.
 Net income for the quarter ended September 30, 1993 was $19,744,000 or $.71 per share, compared with record net income reported in the third quarter of 1992 of $21,374,000 or $.78. A new standard of accounting for income taxes (FAS No. 109) was implemented in the first quarter of 1993. The Company recorded a 33 percent effective tax rate for financial statement purposes in the third quarter of 1993 (which resulted in tax expense of $9,564,000 or $.34 per share), compared with a 6 percent effective tax rate in the third quarter of 1992 (which resulted in tax expense of $1,350,000 or $.05 per share).
 On a pre-tax basis, for the quarter ended September 30, 1993, Pulte Corporation's earnings increased 21 percent to $29,308,000, from $24,198,000 in the same quarter of 1992.
 Revenues from homebuilding operations in the third quarter of 1993 increased 30 percent to a record high for a third quarter of $367,792,000, from $283,883,000 in the third quarter of 1992. The increase resulted primarily from a 23 percent increase in closings to 2,575 from 2,101 in 1992. Pre-tax income from homebuilding operations increased 49 percent to $22,076,000 in the third quarter of 1993, from $14,840,000 in the third 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 6.0 percent in the third quarter of 1993 from 5.2 percent in the same 1992 quarter.
 Net new orders during the quarter ended September 30, 1993 increased 16 percent to a record high for a third quarter at $369,000,000 (2,660 units), from $317,000,000 (2,380 units) during the quarter ended September 30, 1992, which in turn had increased 61 percent from the quarter ended September 30, 1991. Housing unit backlog at September 30, 1993 was a record high of $515,000,000 (3,605 units), and compares to housing unit backlog of $442,000,000 (3,154 units) at September 30, 1992.
 The Company's financial services subsidiaries (mortgage banking, financing and thrift operations) had pre-tax income of $7,770,000 for the quarter ended September 30, 1993, compared with $12,216,000 for the quarter ended September 30, 1992. The decline in earnings was due principally to lower security sale gains.
 However, this decrease was partially offset by the sale of mortgage servicing rights in the third quarter of 1993 which resulted in pre-tax gains of $2,886,000. No such servicing sale occurred in the third quarter of 1992. ICM Mortgage Corporation's mortgage servicing portfolio was $2.345 billion at September 30, 1993, which was 15 percent higher than at September 30, 1992.
 Pulte Corporation is the parent of the Pulte group of companies. Pulte Home Corporation, one of the nation's largest builders, operates in 18 states and 28 markets across the country.
 ICM Mortgage Corporation provides mortgage banking services nationally in 22 markets, and First Heights Bank, fsb, provides banking and financial services in the greater Houston, Texas market.
 Pulte Corporation
 (formerly PHM Corporation)
 Three Months Ended
 September 30,
 -------------------------
 1993 1992
 ---------- ----------
 (000's omitted, except per share data)
 CONSOLIDATED RESULTS:
 Revenues $ 431,683 $ 357,288
 Income before income taxes
 and extraordinary item 29,308 24,198
 Income taxes (9,564)(A) (1,350)
 ------- ------
 Income before extraordinary
 item 19,744 22,848
 Extraordinary loss from
 early extinguishment
 of debt - (1,474)
 ------- ------
 Net income $ 19,744 $ 21,374
 ======= ======
 INCOME PER SHARE:
 Income before extraordinary
 item $ .71 $ .83
 Extraordinary item (.05)
 Net income $ .71 $ .78
 Shares used in per share
 calculations 27,942 27,741
 (A) A new standard of accounting for income taxes (FAS No. 109)
 was implemented in the first quarter of 1993. The effective
 income tax expense rate in the third quarter of 1993 was
 33 percent versus 6 percent in third quarter of 1992.
 Pulte Corporation
 (formerly PHM Corporation)
 Nine Months Ended
 September 30,
 -----------------------
 1993 1992
 ---------- ----------
 (000's omitted, except per share data)
 CONSOLIDATED RESULTS:
 Revenues $1,152,236 $ 930,457
 Income before income taxes,
 cumulative effect of
 change in accounting
 principle and
 extraordinary item 77,042 51,388
 Income taxes (23,883)(A) (3,000)
 -------- --------
 Income before cumulative
 effect of change in
 accounting principle
 and extraordinary item 53,159 48,388
 Cumulative effect of change
 in accounting for
 income taxes 5,000 (B) -
 Extraordinary loss from
 early extinguishment
 of debt - (1,474)
 -------- --------
 Net income $ 58,159 $ 46,914
 ======== ========
 INCOME PER SHARE:
 Income before cumulative
 effect of change in
 accounting principle
 and extraordinary item $ 1.91 $ 1.79
 Cumulative effect of change
 in accounting for
 income taxes .18 -
 Extraordinary item - (.05)
 -------- --------
 Net income $ 2.09 $ 1.74
 ======== ========
 Shares used in per share
 calculations 27,886 26,963
 (A) A new standard of accounting for income taxes (FAS No. 109)
 was implemented in the first quarter of 1993. The effective
 income tax expense rate for the nine months ended
 September 30, 1993 was 31 percent versus 6 percent in the same
 1992 period.
 (B) Income results from implementation of new standard of
 accounting for income taxes, FAS No. 109.
 Pulte Corporation
 (formerly PHM Corporation)
 Segment Data
 Three Months Ended
 September 30,
 --------------------------
 1993 1992
 ----------- ------------
 ($000's omitted)
 HOMEBUILDING OPERATIONS:
 Sales (settlements) $ 367,792 $ 283,883
 Income before income taxes $ 22,076 $ 14,840
 FINANCIAL SERVICES OPERATIONS:
 Revenues $ 63,270 $ 72,557
 Income before income taxes:
 First Heights Bank, fsb $ 2,647 $ 3,830
 ICM Mortgage Corporation (ICM) 3,451 406
 PFCI 1,672 7,980
 ----- -----
 $ 7,770 $ 12,216
 CORPORATE; (Loss) before
 income taxes $ (538) $ (2,858)
 CONSOLIDATED RESULTS:
 Income before income taxes
 and extraordinary item $ 29,308 $ 24,198
 OTHER INFORMATION:
 Housing unit settlements:
 Mid-Atlantic 577 579
 Central 416 313
 Southeast 414 267
 Southwest 1,168 942
 ----- -----
 2,575 2,101
 Mortgage banking (ICM) originations:
 Loans 5,536 3,630
 Principal $ 564,200 $ 369,500
 Pulte Corporation
 (formerly PHM Corporation)
 Segment Data
 Nine Months Ended
 September 30,
 --------------------------
 1993 1992
 ----------- ------------
 ($000's omitted)
 HOMEBUILDING OPERATIONS:
 Sales (settlements) $ 948,713 $ 707,771
 Income before income taxes $ 49,195 $ 28,946
 FINANCIAL SERVICES OPERATIONS:
 Revenues $ 201,616 $ 219,825
 Income before income taxes:
 First Heights Bank, fsb $ 12,291 $ 15,539
 ICM Mortgage Corporation (ICM) 7,460 586
 PFCI 10,303 13,172
 ----- -----
 $ 30,054 $ 29,297
 CORPORATE; (Loss) before
 income taxes $ (2,207) $ (6,855)
 CONSOLIDATED RESULTS:
 Income before income taxes and
 cumulative effect of change
 in accounting principle
 and extraordinary item $ 77,042 $ 51,388
 OTHER INFORMATION:
 Housing unit settlements:
 Mid-Atlantic 1,599 1,413
 Central 986 759
 Southeast 1,092 731
 Southwest 3,195 2,397
 ----- -----
 6,872 5,300
 Mortgage banking (ICM) originations:
 Loans 13,046 10,295
 Principal $1,306,700 $1,022,200
 -0- 10/20/93
 /CONTACT: Michael D. Hollerbach of Pulte Corporation, 313-647-2750/
 (PHM)


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

JG -- DE029 -- 4767 10/20/93 16:32 EDT
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Date:Oct 20, 1993
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