The Housing Chronicles Blog: Homebuilder Standard Pacific for sale?

Wednesday, May 14, 2008

Homebuilder Standard Pacific for sale?

According to Peter Hong in the L.A. Times, Irvine-based homebuilder Standard Pacific may be considering putting itself up for sale after a sixth straight quarterly loss. I personally have always liked Standard Pacific's designs and quality (my cousins have owned an SP home in Corona for over 10 years and seem very happy with it), so it'd be interesting to see which builders have the financial strength to make such a purchase, and even if such a match would make sense:

Irvine home builder Standard Pacific Corp. raised the prospect of selling itself Monday as it reported its sixth straight quarterly loss. Its shares plunged 21%.

Standard Pacific Chief Executive Jeffrey V. Peterson told analysts in a conference call that falling house prices accounted for much of the company's losses and will continue to dog the builder for the rest of the year.

In a regulatory filing, the firm said a sale of the company was among six options it was considering, including a merger or sales of non-core assets...

The company delivered 42% fewer new homes in Southern California in the three months ended March 31 than it did in the same period last year. In all of California, new-home deliveries for the quarter were down 30% from a year earlier.

The company's average home price for California was down 19% in the first quarter of 2008 from a year earlier. In Southern California, the average home price fell 10% for the quarter compared with a year earlier.

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