Weak Housing Market Prompts Losses for Two Large Homebuilders
- Apr 24, 2008
Calabasas, Calif.–As the housing market continues to soften, two of the biggest U.S. homebuilders–Calabasas, Calif.-based Ryland Group Inc. and Bloomfield Hills, Mich.-based Pulte Homes Inc.–announced quarterly losses this week, CNNMoney.com reports. Ryland and Pulte released their first-quarter results after the closing bell on Wednesday. Ryland posted a first quarter loss of $29.3 million, after a loss of $32.2 million last year. Pulte had a net loss of $696.1 million; in the same period last year, the company posted a net loss of $85.7 million. Revenues fell 23 percent to $1.4 billion in the first quarter compared to 2007.Ryland’s revenue for the three months ended March 31 declined from $711.1 million to $416.2 million. New orders in the first quarter dropped to 2,159 units–a 27.8 percent decline–from 2,989 units in 2007.To try to clear out its home supply, Ryland has aggressively reduced its prices, CNNMoney.com said.