Homebuilder PulteGroup, Inc. (PHM) said Friday that it will relocate its corporate offices to Atlanta, Georgia in 2014, from its current location in Bloomfield Hills, Michigan. However, the company's Michigan-based homebuilding operations will remain in Oakland County, Michigan, and continue to provide sales and service in the Michigan market.
Richard Dugas, Jr., PulteGroup Chairman, President and CEO said, "We have historically managed our growth from Michigan, but the Company has reached a point where we must pursue a strategy that better fits with the long-term growth trends for our company and industry. This relocation will bring us closer to our customers and a larger portion of our investment portfolio. This was not an easy decision but I am confident that it is the right choice, at the right time, for the ongoing success of the organization."
PulteGroup was founded in Michigan in 1950 by William Pulte, who retired from the business in March 2010. In 2000, about 72 percent of the company's business investments were located outside of its Michigan and related Midwest markets. The company noted that the re-weighting of its portfolio to south and west has continued, as its investments outside of its Michigan and Midwest markets increased to 92 percent in 2012.
In 2012, PulteGroup's operations in Northern Virginia down through Florida represented 37 percent of its home closings and 43 percent of its year-end invested capital. The company has previously announced plans to increase its authorized investment in land and development for 2013 and 2014 to $1.4 billion, compared to the $924 million that it invested in 2012.
PulteGroup employs about 380 individuals in the state of Michigan, of which 54 work in its local homebuilding operations and will not be affected by the move. The company expects 300 to 350 employees at its corporate offices in Georgia, when fully staffed.
James Ellinghausen, Executive Vice President of Human Resources said, "It is too early to determine how many employees will ultimately assume positions in Georgia, but for those individuals who do not relocate we will offer a very fair severance package and related outplacement services to help locate a new position in Michigan as the surrounding economy continues to improve."
In late April, PulteGroup reported a turnaround to profit in the first quarter. The company's net income for the quarter was $81.76 million or $0.21 per share, compared to net loss of $11.67 million or $0.03 per share in the prior-year period.
Home sale revenues for the quarter increased 35 percent to $1.1 billion. The higher revenues resulted from a 23 percent increase in closings to 3,833 homes, combined with a 10 percent increase in average selling price to $287,000.
PHM closed Thursday's trading at $22.11, up $0.06 on a volume of 4.85 million shares.
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