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PULTE CORPORATION REPORTS RECORD SECOND QUARTER EARNINGS

 BLOOMFIELD HILLS, Mich., July 28 /PRNewswire/ -- Pulte Corporation (formerly PHM Corporation), (NYSE: PHM), (Contact: Michael D. Hollerbach, 313-647-2750) announced today its consolidated revenues and earnings for the second quarter and six months ended June 30, 1993.
 Net income for the quarter ended June 30, 1993 increased 41 percent to $22,547,000 or $.81 per share, from $16,043,000 or $.59 per share for the second quarter of 1992. The earnings are the highest for a second quarter in the Company's history. A new standard of accounting for income taxes (FAS No. 109) was implemented in the first quarter of 1993. The Company recorded a 30 percent effective tax rate for financial statement purposes in the second quarter of 1993 (which resulted in tax expense of $9,661,000 or $.35 per share), compared with a 6 percent effective tax rate in the second quarter of 1992 (which resulted in tax expense of $1,000,000 or $.04 per share).
 On a pre-tax basis, for the quarter ended June 30, 1993, Pulte Corporation's earnings increased 89 percent to $32,208,000, from $17,043,000 in the same quarter of 1992.
 Revenues from homebuilding operations in the second quarter of 1993 increased 36 percent to $331,026,000, from $243,428,000 in the second quarter of 1992. The increase resulted from a 31 percent increase in closings to 2,427 from 1,857 in 1992. Pre-tax income from homebuilding operations increased 53 percent to $17,907,000 in the second quarter of 1993, from $11,681,000 in the second 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 5.4 percent in the second quarter of 1993 from 4.8 percent in t he same 1992 quarter.
 Net new orders during the quarter ended June 30, 1993 increased 19 percent to $345,000,000 (2,451 units), from $289,000,000 (2,145 units) during the quarter ended June 30, 1992, which in turn had increased 15 percent from the quarter ended June 30, 1991. Housing unit backlog at June 30, 1993 was a record high of $513,000,000 (3,520 units), and compares to housing unit backlog of $408,000,000 (2,875 units) at June 30, 1992.
 The Company's financial services subsidiaries (mortgage banking, financing and thrift operations) had pre-tax income of $15,243,000 for the quarter ended June 30, 1993, compared with $7,353,000 for the quarter ended June 30, 1992. Included in second quarter 1993 pre-tax earnings were $4,360,000 of gains from the sale of thrift-owned (First Heights Bank, fsb) mortgage-related securities versus $1,100,000 in the second quarter of 1992. In addition, ICM Mortgage Corporation (ICM) sold mortgage servicing rights which resulted in pre-tax gains of $5,786,000 and $2,228,000 in the second quarter of 1993 and 1992, respectively. After the sales, ICM's mortgage servicing portfolio was $2.178 billion at June 30, 1993, which was 25 percent higher than at June 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 16 states and 27 markets across the country.
 ICM Mortgage Corporation provides mortgage banking services nationally in 21 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
 June 30,
 -------------------------
 1993 1992
 ---------- ----------
 (000's omitted, except per share data)
 CONSOLIDATED RESULTS:
 Revenues $ 404,968 $ 316,056
 Income before income taxes 32,208 17,043
 Income taxes (9,661)(A) (1,000)
 ------- ------
 Net income $ 22,547 $ 16,043
 ------- ------
 Net income per share $ .81 $ .59
 Shares used in per share
 calculations 27,858 27,725
 (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 second quarter of 1993 was 30 percent versus 6 percent in second quarter of 1992.
 Pulte Corporation
 (formerly PHM Corporation)
 Six Months Ended
 June 30,
 -----------------------
 1993 1992
 ---------- ----------
 (000's omitted, except per share data)
 CONSOLIDATED RESULTS:
 Revenues $ 720,553 $ 573,169
 Income before income taxes
 and cumulative effect
 of change in accounting
 principle 47,734 27,190
 Income taxes (14,319)(A) (1,650)
 -------- --------
 After-tax income before
 cumulative effect of
 change in accounting
 principle 33,415 25,540
 Cumulative effect of change
 in accounting for
 income taxes 5,000 (B) -
 -------- --------
 Net income $ 38,415 $ 25,540
 -------- --------
 Net income per share:
 After-tax income before
 cumulative effect of
 change in accounting
 principle $ 1.20 $ .96
 Cumulative effect of change
 in accounting for
 income taxes .18 -
 -------- --------
 Net income $ 1.38 $ .96
 -------- --------
 Shares used in per share
 calculations 27,858 26,570
 (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 six months ended June 30, 1993 was 30 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
 June 30,
 --------------------------
 1993 1992
 ----------- ------------
 ($000's omitted)
 HOMEBUILDING OPERATIONS:
 Sales (settlements) $ 331,026 $ 243,428
 Income before income taxes $ 17,907 $ 11,681
 FINANCIAL SERVICES OPERATIONS:
 Revenues $ 73,264 $ 71,690
 Income before income taxes:
 First Heights Bank, fsb $ 6,239 $ 2,769
 ICM Mortgage Corporation (ICM) 6,067 1,991
 PFCI 2,937 2,593
 ----- -----
 $ 15,243 $ 7,353
 CORPORATE; (Loss) before
 income taxes $ (942) $ (1,991)
 CONSOLIDATED RESULTS:
 Income before income taxes $ 32,208 $ 17,043
 OTHER INFORMATION:
 Housing unit settlements:
 Mid-Atlantic 585 482
 Central 361 247
 Southeast 368 263
 Southwest 1,113 865
 ----- -----
 2,427 1,857
 Mortgage banking (ICM) originations:
 Loans 4,698 3,394
 Principal $ 465,000 $ 332,400
 Pulte Corporation
 (formerly PHM Corporation)
 Segment Data
 Six Months Ended
 June 30,
 --------------------------
 1993 1992
 ---------- -----------
 ($000's omitted)
 HOMEBUILDING OPERATIONS:
 Sales (settlements) $ 580,921 $ 423,888
 Income before income taxes $ 27,119 $ 14,106
 FINANCIAL SERVICES OPERATIONS:
 Revenues $ 138,346 $ 147,268
 Income before income taxes:
 First Heights Bank, fsb $ 9,644 $ 11,709
 ICM Mortgage Corporation (ICM) 4,009 180
 PFCI 8,631 5,192
 ----- -----
 $ 22,284 $ 17,081
 CORPORATE; (Loss) before
 income taxes $ (1,669) $ (3,997)
 CONSOLIDATED RESULTS:
 Income before income taxes and
 cumulative effect of change in
 accounting principle $ 47,734 $ 27,190
 OTHER INFORMATION:
 Housing unit settlements:
 Mid-Atlantic 1,022 834
 Central 570 446
 Southeast 678 464
 Southwest 2,027 1,455
 ----- -----
 4,297 3,199
 Mortgage banking (ICM) originations:
 Loans 7,510 6,665
 Principal $ 742,500 $ 652,700
 -0- 7/28/93
 /CONTACT: Michael D. Hollerbach of Pulte Corporation, 313-647-2750/
 (PHM)


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

JG -- DE024 -- 6895 07/28/93 16:08 EDT
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Date:Jul 28, 1993
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