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Saturday, Sep 23, 2023

Ryland Losses Worse Than Expected

Homebuilder Ryland Group reported expanded losses in the second quarter with the hole growing to $241.6 million, or $5.70 per share, from $52.4 million, or $1.25 in the same period of 2007. The Calabasas-based company included $180.4 million in markdowns and write-offs and a non-cash tax charge of $124 million. Home-building revenue for Ryland, the No. 9 U.S. home builder, fell 35 percent to $472.3 million, as closings dropped 26 percent to 1,828 homes, the average selling price declined 13 percent to $254,000, and new orders fell 19 percent to 2,045. The company’s financial services segment, which includes mortgage, title, escrow and insurance services, reported pretax earnings of $5.5 million for the second quarter, compared to pretax earnings of $9.8 million for the same period in 2007. This decrease was attributed to a 23.5 percent decline in the number of mortgages originated and to a 13.8 percent decrease in average loan size. The company announced it will be paying a third-quarter dividend of $0.12 per share.

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