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THE RYLAND GROUP RECORDS FOURTH-QUARTER EARNINGS CHARGE; COMPANY EXPECTS TO REMAIN PROFITABLE FOR QUARTER AND YEAR

 THE RYLAND GROUP RECORDS FOURTH-QUARTER EARNINGS CHARGE;
 COMPANY EXPECTS TO REMAIN PROFITABLE FOR QUARTER AND YEAR
 COLUMBIA, Md., Dec. 2 /PRNewswire/ -- The Ryland Group, Inc. (NYSE: RYL) today announced a pre-tax fourth quarter earnings charge of $13 million as a result of land and market-related problems with two joint-venture residential developments in California.
 Ryland said it reserved $10 million pertaining to its investment in a joint-venture community in Riverside County due to soil stability conditions in the region, which may require substantial engineering and regrading of the site. The company said the continuing weak market conditions have led to the decision not to continue with the second phase of another joint-venture project in southern California, resulting in an additional $3 million earnings charge.
 Roger W. Schipke, chairman and chief executive officer, said the company expects to be marginally profitable during the fourth quarter. "As a result of the exceptionally strong performance of Ryland's mortgage-related financial services," he said, "we anticipate a profit for the full year, but results will be well below our previous expectations due to these necessary reserves. The trends in California and the drastic drop in national consumer confidence levels continue to pose further uncertainties."
 Housing results generally have improved in many of the company's other major markets. Outstanding contracts as of Oct. 31 were 2,683 units, compared with 2,154 units from comparable operations at the same date in 1990.
 Schipke said California's deepest recession since the early 1970s has led to a declining real estate market. "California is one of our most important markets, and we remain committed to the prospect of long- term growth in the state," he said.
 In its third quarter, Ryland's net earnings rose 20 percent to $6.9 million or 49 cents per share. The company's financial services operations had a pretax earnings gain of 52 percent over the third quarter of 1990 and continues to move toward a record year.
 Ryland is one of the nation's most diversified homebuilders, with operations in 15 states and 26 markets. Its mortgage company and subsidiaries provide mortgage-banking services, issue and administer mortgage-backed securities and manage RAC Income Fund (NYSE: RMF), a closed-end mutual fund and RAC Mortgage Investment Corp. (NYSE: RMR), a real estate investment trust.
 -0- 12/2/91
 /CONTACT: Nancy L. Smith of The Ryland Group, 301-730-4176/
 (RYL RMF RMR) CO: The Ryland Group, Inc. ST: Maryland IN: CST SU: ERN


KA-MP -- PH010 -- 8235 12/02/91 09:38 EST
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Publication:PR Newswire
Date:Dec 2, 1991
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