Newport Beach home builder J.M. Peters Co. Inc., which rode a hot real estate market to record earnings last year, on Thursday reported that its revenue plunged 36% and earnings fell 31% during the three months ended May 31.
Peters said that revenue for the first quarter of its 1990 fiscal year dropped to $57.5 million from $89.6 million during the same period a year ago. Earnings fell to $5 million from $7.3 million.
A prepared release issued by the company did not discuss reasons for the decline, but home sales in Southern California have fallen significantly in recent months in response to rising interest rates and higher prices. Peters officials could not be reached for comment.
The company said it closed sales on 142 homes during the quarter, compared to 317 for the same quarter a year ago. The company received 250 home orders during the quarter, compared to 481 for the comparable period a year ago. On May 31, the firm's backlog stood at 385 new units, compared to 621 a year earlier and 277 units on Feb. 28, Peters said.