Builders Report Robust Results

Ryland Group Inc., parent of one of the nation’s largest homebuilders, said Tuesday that third-quarter net income jumped 27% thanks to a record backlog of orders.

The Calabasas-based company, which also has a mortgage-related finance unit, said net income climbed to $47.4 million, or $1.70 a share, for the three-month period ended Sept. 30, up from $37.2 million, or $1.30, a year earlier.

Revenue from homebuilding rose 3% to $714 million from $695.2 million; total revenue rose 2.7% to $732.7 million. The increase reflected a higher average home-closing price of $209,000.

The company’s backlog of homes -- those units sold in a previous period but not yet delivered -- rose 15% to 6,687; orders for new homes in the third quarter climbed 30% to 3,558; and the number of home sales closed in the quarter edged up less than 1% to 3,362.

Boosted by the latest results, Ryland said it expects earnings for the year to exceed $6 a share, up 50 cents a share from a previous estimate. Analysts were expecting 2002 earnings of $5.74 a share, according to Thomson First Call.

Low mortgage rates have helped boost profits for Ryland and other builders as more first-time buyers enter the market.

But Tuesday, shares of Ryland fell $1.96 to close at $40.50 in New York Stock Exchange trading on concerns that interest rates are starting to creep higher.

Also posting robust results was Bloomfield Hills, Mich.-based Pulte Homes Inc. The nation’s largest builder reported that third-quarter earnings rose 49% to $123.4 million, or $1.99 a share, from $82.8 million, or $1.52, a year earlier.

Excluding income from discontinued operations, profit was $113.5 million, or $1.83 a share. Revenue rose 25% to $1.86 billion.

Centex Corp., another major builder, said quarterly profit jumped 24% to $115.6 million, or $1.83 a share, from $93.3 million, or $1.50, a year earlier. Revenue rose 11% to $2.1 billion.