Builders Meritage, Ryland, See Revenues Tumble

Scottsdale, AZ, Jan. 29, 2009–Home builders Meritage Homes Corp. and Ryland saw sales fall significantly in the fourth quarter and losses continued.

Meritage saw fourth-quarter revenue plummet to $400 million from $619 million for the same period a year ago, but did manage to shore up losses.

The Arizona firm eported a net loss of $79.1 million, or $2.58 per share, for the past quarter, compared with $129 million, or $4.91, a year ago.

For the year, Meritage revenue fell to $1.52 billion from $2.34 billion in 2007 as the housing crunch deepened across the country. Net loss for 2008 was $292 billion, compared with $289 million in 2007.

The company also reported that it increased cash position by $87 million during the fourth quarter, to $206 million at year end.

Calabasas, Calif.-based Ryland Group Inc. reported a fourth-quarter loss of $59.9 million Wednesday as revenue dropped 39%.

Sales were $513.5 million during the period of Oct. 1 through Dec. 31, down from $828.8 million a year earlier.

The loss of $1.40 a share exceeded analysts’ average projection of $1.19 a share.