Golden West Homes Has Net Income of $425,000

Golden West Homes, the Santa Ana-based manufactured housing firm that builder William Lyon is seeking to buy, posted an operating loss of $1.39 million for the third quarter of its 1986 fiscal year. But because of a $1.86-million gain on the sale of excess land in Sunnymead, the company realized net income of $425,000 for the quarter ended March 1. Golden West posted a net loss of $4.98 million for the same period a year ago.

Sales for the third quarter were $10.68 million, down 10.7% from $11.95 million for the year-ago quarter. Lawrence E. Wessel, Golden West’s vice president and chief financial officer, attributed the decline to the company’s implementation of stricter credit policies in the sale of its manufactured conventional homes. In addition, he said, manufactured home sales are historically lower during the third fiscal quarter because of winter weather conditions.

For the first nine months of fiscal 1986, Golden West had net income of $427,000, contrasted with a net loss of $7.29 million for the same period of fiscal 1985. Sales for the nine months were $45.7 million, compared to $44.16 million for the year-ago period.