DOW JONES NEWSWIRES
Ryland Group Inc.'s (RYL) first-quarter loss widened as revenue
fell more than expected amid a steep drop in closings.
The builder has reported just a single profitable quarter since
the fourth quarter of 2006. It has seen revenue decline of late
from year-earlier periods boosted by homebuyers' rush to take
advantage of a government tax credit.
The U.S. housing market recovery is proving to be a prolonged,
painful process. Builders face price competition from deeply
discounted foreclosed properties, and consumers are jittery about
falling values and having a hard time qualifying for mortgages.
Earlier this month, KB Home (KBH) and NVR Inc. (NVR) reported their
bottom lines deteriorated in the latest quarter.
Ryland posted a loss of $19.5 million, or 44 cents a share,
compared with a year-earlier loss of $14.3 million, or 33 cents a
share. The latest period included $9.9 million, or 22 cents a
share, in pretax charges related to inventory and other valuation
adjustments and write-offs. The prior-year result included $5
million in such charges.
Revenue plunged 30% to $174.9 million.
Analysts polled by Thomson Reuters had predicted a loss of 31
cents on $187 million in revenue.
Housing gross margin, excluding inventory and other valuation
adjustments, rose to 15.2% from 13.9%.
New orders fell 17% by number of units as closings dropped 30%.
The average closing price was unchanged.
Shares closed at $17.55, down 0.6%. Through the close, the stock
is down 28% the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com