Newhall Land Reports 7% Drop in Quarterly Earnings
Newhall Land & Farming Co., a Valencia land developer, said its earnings for the fourth quarter that ended Dec. 31 were $8.9 million, down 7% from $9.6 million the previous year.
Revenues for the quarter were up 14% to $55.6 million from $49 million in the fourth quarter the prior year.
For the year, earnings were up 22% to $15.6 million from $12.8 million in 1993. The increase was on revenue of $134.3 million, up 27% from $105.5 million in 1993.
The company said its earnings were lower in the recent quarter because it borrowed $30 million in the fourth quarter, thereby increasing interest costs. Also, agricultural properties sold in the fourth quarter of 1993 yielded higher margins than residential properties, which made up the bulk of sales in the fourth quarter of 1994.
For the whole year, the company cited the region’s economic recovery and new forays into the Arizona land development market for its improved performance.
The company also said it plans to purchase in the open market up to 600,000 units of depositary receipts because the company’s board of directors believes that the units are undervalued.