DOW JONES NEWSWIRES
Ryland Group Inc.'s (RYL) third-quarter loss narrowed on lower
write-downs and higher margins, but orders dropped 37%.
Shares slid 1% to $15.75 in after-hours trading as the home
builder's results were worse than Wall Street expected. The stock
was down 19% this year as of the close.
Ryland, which operates in 15 states, has reported only one
profitable quarter in the past few years, although its losses have
narrowed in recent quarters on fewer write-downs. However, the end
of a federal home-buyer tax credit has left builders struggling to
boost sales from near rock-bottom levels amid high unemployment and
depressed home values. They also face competition from a glut of
foreclosed homes on the market.
For the latest quarter, Ryland reported a loss of $29.9 million,
or 68 cents a share, compared with a year-earlier loss of $52.5
million, or $1.20 a share. Write-downs fell to $16.7 million from
$39.1 million. Revenue dropped 35% to $212.7 million as closings
slid 36% following a rush to finish deals by June 30, the original
closing deadline to qualify for the tax credit.
Analysts estimated a loss of 27 cents on revenue of $214
million, according to a poll by Thomson Reuters.
Gross margin, excluding write-downs, rose to 14.2% from
10.8%.
Backlog at the end of the quarter was down 46% from a year
earlier.
In its financial-services segment, the company posted a 41%
decline in the number of mortgages originated.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com