Homebuilder Ryland Reports Profit on Tax Boost

Calabasas, CA, Jan. 28, 2010--Homebuilder Ryland Group Inc. reported a $39 million quarterly profit thanks to a tax boost of almost $100 million.

The company said fourth-quarter net income was $39 million, or $0.88 a share, compared to a net loss of $59.9 million, or $1.40 a share, for the same period in 2008.

Analysts polled by Thomson Reuters had forecast a fourth-quarter loss of 26 cents a share, on average.

Ryland's main home-building business suffered a pre-tax loss of $55.1 million during the fourth quarter of 2009, down from a pre-tax loss of $82.7 million in the same period of 2008.

"This reduction in loss was primarily due to higher gross margins, lower selling, general and administrative expenses, and a decrease in loss from land sales, partially offset by higher inventory and other valuation adjustments and write-offs, as well as to declines in closings and home prices," Ryland said in a statement.

Home-building revenue dropped 21% percent to $405.3 million in the fourth quarter of 2009 as Ryland sold fewer homes at lower prices.