J.M. Peters Reports Drop in Profits

J.M. Peters Co. Inc., the Newport Beach home builder, said profits dropped to $3.5 million in the second quarter on housing sales of $56.6 million, compared to $7.3 million in profits on $86.1 million in sales last year.

The lower earnings disappointed stock analysts, who had projected profits of as much 75 cents a share earlier this year. That was far higher than the 25 cents a share the company actually earned in its fiscal second quarter, which ended Aug. 31. Last year the company earned 53 cents a share, or 53% more.

The analysts attributed the problems to construction delays, particularly in J.M. Peters’ Los Angeles markets. That meant the company sold fewer homes even though orders for homes increased: Buyers ordered 322 homes during the second quarter compared to 277 last year.

For the first half of its fiscal year, Peters earned $8.5 million on sales of $112.1 million, compared to $14.5 million on sales of $173 million. New orders for the first half were down by nearly 200 homes, the company reported, or 25%. From 758 last year, orders dropped to 572 this year.