Builder Standard Pacific posts wider loss in quarter
Reeling from the ongoing real estate meltdown, Irvine home builder Standard Pacific Corp. on Wednesday reported a wider second-quarter loss of $248.2 million.
The red ink, amounting to $3.82 a share, was 50% greater than last year’s loss of $165.9 million, or $2.56. Revenue fell 38% to $410.6 million.
“It is clear that the housing market and the broader U.S. economy remain challenged and continue to deteriorate,” Standard Pacific Chairman Jeffrey V. Peterson said.
“Nonetheless, we will remain focused on generating sales and deliveries, reducing inventory levels, carefully managing cash and optimizing our overhead structure,” he said.
Recently, Standard Pacific picked up a $530-million equity commitment from MatlinPatterson Global Advisors, helping it to pay down debt and pad its available cash.
The additional equity “will meaningfully strengthen the company’s balance sheet, enabling us to more effectively weather the current downturn and positioning us to better compete as market conditions improve,” Peterson said.
Standard Pacific shares fell 3 cents to $3.30. Results were released after the close of trading. The stock has lost 76% of its value since reaching a 52-week high a year ago.