Standard-Pacific Posts Record Net

Standard-Pacific Corp., a Costa Mesa builder of medium priced homes, said Tuesday that competitive pricing, company-financed mortgages and a general rebound in the California real estate market contributed to record sales and net income in the firm’s second quarter and first six months of fiscal 1985.

The company posted net income of $4.2 million for the second quarter ended June 30, up 49% from $2.8 million for the same quarter of 1984. Sales for the period rose nearly 29% to $65.9 million from $51.2 million a year earlier.

For the first half of 1985, Standard-Pacific said it had net income of $7.1 million, up 58% from $4.5 million for the year-ago period. Sales increased 27% to $109.5 million from $86.5 million the previous year.

Standard-Pacific chairman Arthur Svendsen said the company expects to continue its record growth in earnings and revenue through the second half of 1985.

Robert J. St. Lawrence, Standard-Pacific’s chief financial officer, said he believes the company has benefited from concentrating its home building in the exceptionally vigorous California market. “Most of our production is in California, and California has been doing very well,” he said.

Also, Lawrence said, the company has been able to competitively price its houses in part because most of them of them were built on land bought at relatively low prices as long as 12 years ago.

Another boon to Standard-Pacific, he said, has come from the company’s expanding participation in a program whereby it writes low-interest-rate mortgages for its home buyers that are pledged against triple-A rated bonds. In the second quarter, he said, the company provided half of the mortgages for its home sales.