Newhall Land’s Profit Down 66% for Quarter

Newhall Land & Farming Co., a Valencia real estate and agricultural concern, said its second-quarter profit fell 66% from a year earlier on a 10% decline in revenue.

In the three months that ended June 30, Newhall’s net income dropped to $3.08 million from $9.13 million a year earlier, while revenue fell to $31.1 million from $34.5 million. For the first half of 1989, Newhall’s profit was off 48% to $11.5 million from $22 million, and revenue dipped 2% to $67.3 million from $68.4 million.

Newhall is developing the master-planned community of Valencia, and year-to-year comparisons of its financial results often are erratic depending on Newhall’s schedule of selling land, new houses and commercial properties.

Newhall said most of its house and land sales would be concentrated in the second half of this year. For instance, Newhall said a previously announced, $43-million proposed sale of 238 residential lots is scheduled to close in the fall. The sale is expected to add $23 million to Newhall’s 1989 earnings.