DOW JONES NEWSWIRES
Ryland Group Inc. (RYL) swung to a fourth-quarter loss as the
builder recorded a big tax benefit in the year-earlier quarter and
saw revenue decline by more than half and new orders slide by
one-fifth in the most recent period.
Ryland, which operates in 15 states, has reported just a single
profitable quarter--the one in the year-earlier period--over the
past several years, though it had narrowed its losses in recent
quarters because of fewer write-downs. Still, the expiration of a
government tax credit that boosted sales last year has left
builders struggling and orders low. In the most recent quarter,
orders dropped 20%.
Ryland posted a fourth-quarter loss of $19.1 million, or 43
cents a share, compared with a profit of $39 million, or 88 cents a
share, a year earlier. The most-recent quarter included charges
totaling $15.4 million related to inventory and valuation
adjustments, while the year-earlier quarter included a tax benefit
of $97.6 million.
Revenue dropped 52% to $227.1 million.
Analysts polled by Thomson Reuters had most recently forecast a
35-cent loss and $234 million in revenue.
Housing gross margin edged upward to 14.3% from 14.2%.
Backlog at the end of the quarter fell 31% from a year earlier.
The average closing price increased 2.5%.
Shares closed at $18.24 and were inactive after hours. The stock
has fallen 13% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;