Forestar swings to a loss in 4th quarter

AUSTIN — Forestar Group Inc. said Wednesday it swung to a loss in the fourth quarter as the real estate and natural resources developer took a write-down on a condominium development and booked a charge for an environmental remediating project.

Forestar lost $7.4 million, or 20 cents a share, in the three months ended in December. That compares with a profit of $1.7 million, or 5 cents a share, in the prior-year period.

Revenue fell to $31.4 million from $37 million a year earlier.

The results included $6.3 million in charges related to a write-down on a condominium development in Austin and costs for environmental remediation at the company's San Joaquin River project near Antioch, Calif.

Analysts polled by Thomson Reuters expected the company would break even for the quarter on revenue of $29.5 million.

Forestar develops real estate and mineral and fiber resources.

Each of those business lines generated lower revenue during the quarter than in the prior-year period.

The real estate segment lost $2.5 million compared with earnings of $3 million a year earlier.

Total quarterly earnings for the three segments fell to $2.2 million from $11.9 million.

For the full year, Forestar earned $59.1 million, or $1.64 a share, compared with $12 million, or 33 cents a share, in 2008. Revenue for the year fell to $146.2 million from $160 million.

Shares fell 75 cents, or nearly 4 percent, to close Wednesday at $18.09.