Ryland Warns of Q2 Loss

Los Angeles, CA, July 11, 2007–The Ryland Group warned that it expects to post a second quarter net loss of $1.25 to $1.35 per share due to continued deterioration in the housing market.

The home builder expects to book additional pre-tax charges of $145 million to $155 million related to inventory impairments and write-offs related to assets in Arizona, California, Florida and Nevada.

Excluding inventory impairments and write-offs, the company expected to earn 70 cents to 80 cents per share during the second quarter.

Analysts, on average, had been looking for the company to post a second quarter profit, excluding items, of 46 cents per share.

Ryland said preliminary closings totaled 2,461 units in the period compared with 3,803 units in the second quarter of 2006, a decline of 35.3 percent.

Preliminary sales for the second quarter fell 16.6 percent from the year-ago period to 2,521 units.

Cancellations were about 34 percent of gross orders for the quarter, compared with 35.9 percent in the second quarter of 2006.