William Lyon Homes’ Profit Triples in Quarter

William Lyon Homes said Thursday that third-quarter profit more than tripled as the average price of its homes jumped 43%.

The Newport Beach company reported net income for the period ended Sept. 30 of $44.9 million, or $4.51 a share, compared with $14.9 million, or $1.49, a year earlier.

Operating revenue jumped to $474.9 million from $214 million a year earlier. Revenue included $153.2 million from consolidated joint ventures with no comparable amount last year.

Lyon builds homes in California, Nevada and Arizona -- three of the strongest housing markets in the U.S. During the period, the firm closed, or completed and sold, 864 homes -- a record for the third quarter and up 25% from the same period in 2003.

The average price of a Lyon home was $549,000, versus $383,000 a year earlier; in California, the average was $640,000, compared with $450,000. Gross margins rose to 26% from 17%.

Because of a cooling housing market in California and other markets, and because the company had booked a record amount of new homes during the first and second quarters, net new-home orders dropped 33% during the third quarter. In California, the company’s largest market, orders were down 52%.

Still, Lyon’s net new-home orders for the first nine months of the year totaled a record 2,878, up 7% from the same period a year ago.

“Our strategy of building in three of the top markets has been validated by our record results for the first nine months of 2004,� said William Lyon, the company’s founder, chairman and chief executive.

William Lyon Homes shares fell $2.12 to $67.58 on the New York Stock Exchange after industry leader Lennar Corp. warned of delayed closings in the fourth quarter. Lyon executives have scheduled a conference call with investors today.