Ryland Group's profits down for quarter, year

February 07, 1992|By Ellen James Martin

Earnings for the Columbia-based Ryland Group were off sharply during the fourth quarter and year, as the company's booming financial-services group continued to cushion a severe slide in homebuilding operations.

Nationally, the recession drove housing starts to a 46-year-low in 1991. But Ryland is already predicting that its homebuilding business is due for a rebound, said Nancy L. Smith, a Ryland Group vice president.

"We're already seeing an improvement in consumer confidence, based on an improvement in new home orders in January," Ms. Smith said.

"January was a surprisingly strong month," Roger W. Schipke, Ryland's chairman and chief executive officer, said in a prepared statement. "New home orders totaled 983 compared with 487 a year earlier."

Ryland's homebuilding operations reported a 1991 pretax loss of $16.3 million, primarily because of a 12 percent decline in the number of homes settled and losses from joint-venture projects in Southern California, a company statement said.

Ryland's homebuilding group earned $22.2 million in 1990, the company said.

The homebuilding industry is going through a shake-out that is causing the demise of many smaller players, Ms. Smith said. As a result, prospects for larger companies should improve, she said.

Financial-service revenues were up nearly 80 percent in the quarter, to $28.4 million and produced operating profits of $11.6 million, more than triple comparable 1990 results.

For the full year, the financial group's revenues were up 45 percent, to $78.8 million, and operating earnings were $28.4 million, again more than triple 1990 levels.

Three months ended 12/31/91

... ... ... ... ...Revenue... ... ... ... ... Net... ... ... Share

'91... ... . $343,835,000... ... ... 1,694,000... ... ... $0.08

'90... ... . $335,630,000... ... ... 3,887,000... ... ... .$0.24

% change... ... ... . +2.4... ... ... ... ..-56.4... ... ... -66.6

Year ended 12/31/91

... ... ... ... ...Revenue... ... ... ... ... Net... ... ... Share

'91... .. $1,214,295,000... ... ... 9,451,000... ... ... .$0.52

'90... ... $1,312,670,000... ... ... 21,797,000... ... ... $1.42

% change... ... ... ..-7.5... ... ... ... ..-56.6... ... ... -63.3

fTC

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.