Builders report rise in earnings

Jennifer Shubinski

Friday, Jan. 23, 2004 | 11:23 a.m.

Two home builders with interests in Las Vegas, D.R. Horton Inc. and The Ryland Group Inc., reported strong earnings results this week.

Arlington, Texas-based D.R. Horton reported a 40 percent jump in profit to $185.6 million, or 78 cents per share, in its fiscal first quarter from $111.8 million, or 50 cents, in the year-ago quarter.

Revenue for the period ended Dec. 31 rose 21 percent to $2.16 billion from $1.71 billion.

The company, which is the fourth-largest home builder in Las Vegas, attributed the improvement to double-digit sales increases along with the company's $3.6 billion backlog of homes.

D.R. Horton closed escrow on 1,794 homes in the Las Vegas area in 2003, up from 1,307 closings in 2002, according to Home Builders Research Inc.

The Ryland Group reported a 22 percent increase in fourth-quarter profit to $86.1 million, or $3.29 per share, up from $67.5 million, or $2.50, in the year-ago quarter. For the year, Ryland reported a profit of $241.7 million, or $9.11 per share, up from $185.6 million, or $6.64, in 2002.

Revenue for the Calabasas, Calif.-based company grew 13 percent in the fourth quarter to $1.07 billion from $929.7 million. Year-end revenue grew 16 percent to $3.44 billion from $2.88 billion.

The company said the strong results follwed higher closing volume on home sales, higher average closing prices of homes sold and increased profit margin on home sales.

Ryland, one of the nation's largest builders, announced plans during the fourth quarter to expand its home building operations into Las Vegas.

Ryland owns more than 700 lots in the Las Vegas Valley and will begin selling homes in five local communities this year. Ryland will offer mostly first-time and first-move-up homes.