Ryland 3Q loss narrows on fewer charges

Ryland posts narrower 3rd-quarter loss on reduced write-offs, valuation adjustments

• On 6:49 pm EDT, Wednesday October 28, 2009

CALABASAS, Calif. (AP) -- Homebuilder Ryland Group Inc. on Wednesday said its third-quarter loss narrowed on shallower losses at its home building businesses.

Ryland posted a loss of $52.5 million, or $1.20 per share, compared with a loss of $65.7 million, or $1.54 per share, for the same quarter in 2008. Revenue fell 40 percent to $327.8 million from $543.8 million.

The loss was deeper than Wall Street expected. Analysts polled by Thomson Reuters expected a loss of 88 cents per share on $354 million in revenue.

The recent quarter's results included pretax charges for inventory and other valuation adjustments, and write-offs that totaled $39.1 million, or 89 cents per share, compared with $64.8 million for the same period in 2008.

The homebuilding segments reported a pretax loss of $48.5 million down from a pretax loss of $72.4 million in the year-ago, mainly as a result of the lower inventory valuation adjustments and write-offs.

Homebuilding revenue fell 40 percent to $315.8 million on fewer closings and lower sale prices. The number of closings fell 34 percent to 1,323 units, while the average closing price of a home decreased 6.3 percent to $238,000.

In aftermarket trading, Ryland shares fell 8 cents to $18.70 after dropping $1.39, or 6.9 percent, to $18.66 in the regular session.

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