Ryland sees net loss for third quarter
Ryland Group, the Calabasas, Calif.-based home builder, reported a consolidated net loss of $65.7 million for the third quarter ended Sept. 30, 2008, compared to a loss of $54.7 million for the same period last year.
The home builder saw inventory valuation adjustments and option deposit and feasibility write-offs of $64.7 million, in addition to a non-cash income tax charge of $16.5 million.
Consolidated revenues were $543.8 million, down 26.2 percent from last year’s third quarter.
New orders totaled 1,284 units, down 31.6 percent, compared to new orders of 1,876 units for the same period in 2007. Closings for the quarter amounted to 2,017 units, down 19.2 percent from the same period in the prior year. Inventory of houses started and unsold decreased to 719 units at Sept. 30, 2008, down 12.6 percent from 823 units at Dec. 31, 2007.
Builders FirstSource posts $19 million loss
Builders FirstSource reported a net loss of $18.9 million for its third quarter, which ended Sept. 30, 2008, an improvement over the previous quarter’s loss of $45.9 million. The net loss for the third quarter of 2007 was $12 million.
Sales for the third fiscal quarter were $288.3 million, a 30.3 percent drop from sales of $413.9 million in the same quarter last year.
The company said it closed two facilities during the third quarter, although it did not specify where. Last week, Builders FirstSource announced it had exited the New Jersey market by shuttering five facilities: a distribution center, a manufacturing facility and three showrooms. Altogether, these closures will add $5 million to $7 million in liquidity in 2009, according to the company.
“We are more than two years into the downturn, and our cash remains strong at $131.2 million,” said CEO Floyd Sherman in a prepared statement. “Accordingly, we believe we are well positioned to withstand the challenging conditions facing our industry.”
Ranked No. 9 on the Home Channel News Top 350 Pro Dealer List, Builders FirstSource operates 61 lumberyards in 11 states.
HCN Index limps into the weekend
The HCN Stock Index declined 4.68 percent on Friday to finish the week at 646.58. Since Monday, the index has steadily deteriorated, shedding 14.2 percent in four straight days of downward movement.
Also on Friday, the Dow Jones Industrial Average declined 3.59 percent, dropping 312.3 points to finish at 8,378.95.
Among the 20 home channel companies on the HCN index, BMHC suffered the highest percent decline on Friday – 40.9 percent. It finished the day at $0.42, after announcing the day before that it would no longer be traded on the New York Stock Exchange. Other big decliners were BlueLinx, down 9.1 percent; Fastenal, down 8.0 percent; and Builders FirstSource, down 7.74 percent.
Shares of Louisiana Pacific rose 20 cents to $3.48, a 6.1 percent gain.