Business Briefs: Pulte Homes to Acquire Rival Centex Corp. in Deal Worth $1.3 Billion

Pulte Homes Inc. has agreed to buy rival Centex Corp. in a $1.3 billion deal combining two of the three most widely known home builders in the Raleigh-Durham area and in the Southeast, for the most part. That leaves Beazer Homes standing alone and becoming more and more vulnerable. The all-stock transaction, in which Pulte also will assume $1.8 billion in Centex debt, will create the nation's largest home builder.

According to Triangle Business Journal's 2009 Book of Lists, Dallas, Texas-based Centex (NYSE: CTX) ranks No. 2 and Bloomfield Hills, Mich-based Pulte (NYSE: PHM) is No. 3 among the top residential builders in the Raleigh-Durham market. The move is a smart one on their part. As a combined force, they will be better able to navigate through the treacherous waters of the current housing downturn.

Upon closing of the transaction, Pulte shareholders will own approximately 68 percent of the combined company, and Centex shareholders will own approximately 32 percent. Now if only Beazer Homes could find someone to merge with, despite the ongoing FBI investigation, then they would be in a better position.

Beazer Homes Rewards Top Execs Ian McCarthy, Michael Furlow, Allan Merrill With Bonuses Totalling $1.4 Million, While Losses Top 131 Percent

While the housing market has literally collapsed and many homebuilders are going out of business, Beazer Homes has rewarded its executives handily despite mounting losses. It is really unconscionable that after a year in which the company's losses topped 131 percent to more than $951 million, the company doled out $1.4 million in bonuses to its top three executives.

Ian McCarthy, CEO of the struggling Atlanta-based builder, received a $600,000 bonus. McCarthy’s base pay is $1.2 million.

Executive Vice President and Chief Operating Officer Michael Furlow was awarded $400,000, 50 percent of his base pay.

And Executive Vice President and Chief Financial Officer Allan Merrill received $400,000. Merrill’s base pay is $600,000.

“These awards were appropriate in light of the importance of having met the performance targets and the need to continue to motivate our executives by tying compensation to individual performance,” Beazer says in a Securities and Exchange Commission filing. Merrill’s bonus includes $100,000 “in light of his efforts in completing a restatement of the company’s financial statements.” In May, Beazer released several periods of restated earnings after an internal investigation found “accounting errors and irregularities.”

The bonuses were for fiscal year 2008, which ended Sept. 30. During those 12 months, Beazer’s losses grew from $411.1 million to $951.9 million. Its stock price fell 27 percent to less than $6.

Low consumer confidence, falling prices, high levels of unsold homes and more restrictive lending are all hurting home sales, Beazer says. Completed sales contracts plummeted 38 percent compared to fiscal year 2007. Source: Atlanta Journal Constitution

Let's not forget that this is the same company currently under investigation following complaints about an inordinate number of foreclosures in the Charlotte area. Seems like their priorities are misguided to me. The company said that it is working to cut its expenses and inventory, as well as boosting its cash position. The company, according to the Atlanta Journal Constitution, now employs about 1,400 people after cutting its workforce by 45 percent, or 1,175 employees, in fiscal year 2008. So, the workers suffer while the top executives hit pay dirt for the holidays. The middle class gets crapped on while the top executives get richer.

Beazer Homes Rewards Top Execs Ian McCarthy, Michael Furlow, Allan Merrill With Bonuses Totalling $1.4 Million, While Losses Top 131 Percent

While the housing market has literally collapsed and many homebuilders are going out of business, Beazer Homes has rewarded its executives handily despite mounting losses. It is really unconscionable that after a year in which the company's losses topped 131 percent to more than $951 million, the company doled out $1.4 million in bonuses to its top three executives.

Ian McCarthy, CEO of the struggling Atlanta-based builder, received a $600,000 bonus. McCarthy’s base pay is $1.2 million.

Executive Vice President and Chief Operating Officer Michael Furlow was awarded $400,000, 50 percent of his base pay.

And Executive Vice President and Chief Financial Officer Allan Merrill received $400,000. Merrill’s base pay is $600,000.

“These awards were appropriate in light of the importance of having met the performance targets and the need to continue to motivate our executives by tying compensation to individual performance,” Beazer says in a Securities and Exchange Commission filing. Merrill’s bonus includes $100,000 “in light of his efforts in completing a restatement of the company’s financial statements.” In May, Beazer released several periods of restated earnings after an internal investigation found “accounting errors and irregularities.”

The bonuses were for fiscal year 2008, which ended Sept. 30. During those 12 months, Beazer’s losses grew from $411.1 million to $951.9 million. Its stock price fell 27 percent to less than $6.

Low consumer confidence, falling prices, high levels of unsold homes and more restrictive lending are all hurting home sales, Beazer says. Completed sales contracts plummeted 38 percent compared to fiscal year 2007. Source: Atlanta Journal Constitution

Let's not forget that this is the same company currently under investigation following complaints about an inordinate number of foreclosures in the Charlotte area. Seems like their priorities are misguided to me. The company said that it is working to cut its expenses and inventory, as well as boosting its cash position. The company, according to the Atlanta Journal Constitution, now employs about 1,400 people after cutting its workforce by 45 percent, or 1,175 employees, in fiscal year 2008. So, the workers suffer while the top executives hit pay dirt for the holidays. The middle class gets crapped on while the top executives get richer.