Home builder Standard Pacific Corp. credited strong sales in California and expanded operations in the Southeastern U.S. for a 39% increase in first-quarter profit and a large jump in new orders.
The Irvine-based company reported net income rose to $24.8 million, or 75 cents a share, from $17.8 million, or 59 cents, a year earlier. First-quarter revenue grew 40% to $399.7 million from $286 million. The company reported its results Monday.
Nationwide, Standard Pacific delivered 1,351 homes in the quarter, a 55% increase that related primarily to the addition of newly acquired home building companies in Florida and the Carolinas. In California, home deliveries were up 12% to 456 while the average selling price of their homes in the state also rose 12% to $503,000.
"Our earnings growth is being driven by the continued strength of the California housing market, particularly in Southern California," said Chairman Stephen J. Scarborough.
Standard Pacific sells homes in the San Francisco Bay Area, Thousand Oaks, Valencia, Ladera Ranch in Orange County and Carlsbad. The company ended the quarter with a backlog of 4,019 pre-sold homes valued at $1.3 billion. New orders surged 41% to 2,293 homes.
Standard Pacific estimates that its earnings for the year will be $4.65 to $4.75 a share, a potential increase of nearly 30% compared with 2002.
On Tuesday, Standard Pacific shares rose 10 cents to $29.99 on the New York Stock Exchange.