Standard Pacific’s ’89 Earnings Up 41%, at Record $106 Million

COSTA MESA — Standard Pacific L.P. said Tuesday that its 1989 earnings hit a record $106.3 million, up 41% from $75.4 million in 1988.

The home builder’s revenue for the year, however, dropped 1.2% to $486.4 million from $492.5 million.

Standard Pacific sold 1,443 homes in 1989, down 17.8% from 1,756 units in 1988, company spokeswoman April J. Morris said.

Profits increased even though the number of units declined, she said, because Standard Pacific concentrated for much of the year on building larger units that have a higher profit margin but take longer to build.

For the fourth quarter, earnings rose 11% to $36 million from $32.4 million a year earlier. Revenue for the period of $171.3 million was up 3.7% from $165.2 million in the fourth quarter of 1988.

Chairman Arthur E. Svendsen attributed 1989 results to strong demand for homes in all four of the company’s market areas: Orange County and the Inland Empire; San Diego County; Ventura County, and the East San Francisco Bay Area.

The company, one of only a handful of limited-partnership home builders in the nation, said its annual earnings represented a profit of $3.87 per limited partner unit.

The cash distribution to investors is to be decided at a meeting today and should be close to $2.32 per share to meet the goal of 60% of net profit established last year, Morris said.

For the first three quarters, Standard Pacific has paid out a total of $1.35 per partnership unit.

In addition to its home building unit, which specializes in moderately priced single-family homes, Standard Pacific owns and operates a savings bank, Standard Pacific Savings in Newport Beach, and manufactures and markets moveable acoustical office partitions and office furniture through its wholly owned subsidiary, Panel Concepts L.P.