Ryland 2Q Loss Narrows Amid Fewer Charges, Jump In Closings

Ryland Group Inc.'s (RYL) second-quarter loss narrowed, and adjusted results beat analysts' estimates, as the home builder said new orders slumped 44% amid a now-expired government tax credit.

Shares were down 0.8% to $16.22 after hours. As of the close, the stock had fallen 20% in the past year.

Meanwhile, total closings jumped 38% to 1,505 while the average sale price fell 0.8%. Home builders' results had been buoyed of late by tax credits given by the federal government to first-time homebuyers. Before a last-minute extension, closings had to have taken place by June 30 or the credit would be lost.

Ryland, which operates in 15 states, has seen its results improve of late. The company posted its first profit in years in the fourth quarter, like many builders, and it narrowed its first-quarter loss, helped by fewer write-downs.

Ryland reported a loss of $21.8 million, or 49 cents a share, compared with a year-earlier loss of $73.7 million, or $1.70 a share. The results included write-downs and other impacts of $27.7 million and $47.3 million, respectively. Excluding charges, earnings in the latest quarter were 14 cents while revenue jumped 37% to $373.3 million.

Analysts polled by Thomson Reuters had most recently forecast a loss of 25 cents and $302 million in revenue.

Housing gross margin, which excludes inventory and other valuation adjustments, rose to 15.9% from 7.8%.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail];