Calabasas, CA, July 19, 2006--Home builder Ryland Group Inc., said its second-quarter net income fell 9% from the year-ago period, and lowered its 2006 profit outlook for the second time as the housing market continues to wind down.
The company said quarterly earnings came in at $94.8 million, or $2.03 a share, compared with $104.3 million, or $2.10 a share in the year-earlier period. Ryland, the eighth-largest U.S. builder by 2005 deliveries, said revenue was $1.2 billion versus $1.16 billion the previous year.
Analysts were expecting earnings of $93.9 million, or $1.93 a share, on sales of $1.24 billion.
The company reduced its earnings forecast for 2006, saying it now expects profit between $7.75 and $8.25 a share. Ryland said second-quarter orders plunged nearly 40% to 3,023 homes.
In late May, Ryland cut its 2006 profit forecast to a range of $8.50 to $9 a share, saying its second-quarter sales at that time were 35% lower than the previous year. Through Tuesday's close, the stock is down 51% year to date.
Ryland said the average closing price of a home in the second quarter rose 8.5% from last year to $295,000. At the end of the quarter, the company's backlog of homes awaiting construction was 8,151 homes with a sales value of $2.52 billion, versus 10,534 homes and $3.07 billion the previous year.
