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Standard Pacific Says Net Income Fell 14%

October 24, 2002|Daryl Strickland | Times Staff Writer

Homebuilder Standard Pacific Corp. said Wednesday that third-quarter profit declined 14% because of one-time charges stemming from slowing sales in Texas and Colorado. But the Irvine-based company raised its earnings forecast for this year thanks to its recent expansion into the Southeast.

Standard Pacific reported that net income fell to $22.6 million, or 68 cents a share, from $26.3 million, or 86 cents, a year earlier. Revenue rose 38% to $462 million from $334 million.

The results included charges of $1.8 million, or 5 cents a share, from a previously announced decision to close its Houston division, and $3.7 million, or 11 cents a share, from projects that needed incentives or price markdowns to sell in the Denver area.

"We have felt the effects of regional economic slowdowns," said Chairman Stephen Scarborough. Without the set-asides, the builder said, it would have reported a 7% increase in earnings.

Still, the number of new homes the company delivered jumped 41% to 1,565 in the period; the number of consumers that ordered new homes climbed 78% to 1,731; and the backlog of houses sold that are under construction more than doubled to 3,964 from 1,890 last year.

Expansion into the Southeast will help boost fourth-quarter earnings per share to $1.32 to $1.42, compared with $1.04 a year earlier, said Andrew Parnes, a senior vice president. That, in turn, will elevate full-year profit to $3.40 to $3.50 a share.

Standard Pacific shares rose $1.27 to $25.39 on the New York Stock Exchange. Results were announced after markets closed.

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