DOW JONES NEWSWIRES
Ryland Group Inc.'s (RYL) second-quarter loss narrowed as the
company reported fewer charges and lower operating expenses, though
homebuilding revenue continued to fall.
The home builder, which operates in 15 states, has reported just
one profitable quarter in recent years. It has seen revenue decline
of late from year-earlier periods boosted by homebuyers' rush to
take advantage of a government tax credit.
High unemployment rates and competition with foreclosed homes,
which typically sell at a steep discount, continue to weigh on the
battered housing market. Builders NVR Inc. (NVR) and KB Home (KBH)
both reported their bottom lines deteriorated in the latest
quarter.
Ryland posted a loss of $10.7 million, or 24 cents a share,
compared with a year-earlier loss of $21.8 million, or 49 cents a
share. The latest period included $8.6 million in charges related
to writedowns and other items, while the prior-year result included
$19.1 million in charges. Revenue fell 40% to $225.2 million.
Analysts polled by Thomson Reuters had most recently predicted a
loss of 21 cents on $227 million in revenue.
Gross margin rose to 15.4% from 13.4% as operating expenses fell
37%.
Homebuilding revenue fell 40%. Housing gross margin, excluding
inventory and other valuation adjustments, fell to 14.5% from
15.9%.
New orders increased 11.2% by number of units as closings
dropped 42%. The average closing price rose 2.9% to $245,000.
Shares closed at $14.97 on Wednesday, down 4.2%, and were
inactive in after-hours trading. The stock is down 13% over the
past 12 years.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com