Ryland Posts 2Q Loss

Calabasas, CA, July 26, 2007--Ryland Group posted a loss in its second-quarter on Wednesday due in part to charges for lowering land value as the housing market deteriorates.

Ryland posted a second-quarter net loss of $52.4 million, or $1.25 per share, compared with a profit of $94.8 million, or $2.03 per share a year ago.

The results were at the lower end of the company's forecast for a net loss of $1.25 to $1.35 per share.

Excluding a charge of $147.1 million for the write down in inventory and land, the company would have posted earnings of $0.80 per share, the higher end of its forecast of $0.70 to $0.80 per share.

The company said home sales during the quarter fell 35.3 percent to 2,461 homes.

The decline in the number of homes sold as well as a slight decline in the average selling price to $292,000 from $295,000 sent home-building revenue down 38.3 percent to $722.6 million compared with the second quarter of 2006.

Total gross profit margins, including land sales, fell to negative 1.2% from a positive 23.3% in the second quarter of 2006.

New orders were off 16.6% to 2,521 units and the value of the orders fell 21.8% to $696.8 million.