The Ryland Group Inc.'s board of directors voted yesterday to elevate R. Chad Dreier, its chief executive and president since November 1993, to chairman.
Mr. Dreier, who will replace Andre W. Brewster as chairman of the Columbia-based homebuilder, will retain his current titles. Mr. Brewster, who stepped in as chairman last year after the abrupt departure of Chairman and Chief Executive Roger W. Schipke, will remain on the board.
"If someone would have told me when I was a senior in college that someday I'd be the head of a company on the New York Stock Exchange, I wouldn't have believed it," Mr. Dreier said. "I think it shows the board felt comfortable with what we've been doing in the past year."
Under Mr. Dreier, the nation's third-largest homebuilder has restructured to focus primarily on residential operations and its supporting mortgage business. In announcing the appointment, the 10-member board cited the success of his initiatives, including improving land acquisition methods, marketing and cost-control measures.
In the first nine months of this year, Ryland posted net income of $22.2 million on revenues of $1.2 billion, reversing a net loss of $10.3 million on revenues of $1.04 billion the year before.
"It gives me comfort because it means now he's really running the show," said Ivy Schneider, a Salomon Bros. Inc. analyst. "If you believe in Chad, as I do, it's a real positive."
Mr. Dreier, 47, joined Ryland from Kaufman & Broad Home Corp., California's largest homebuilder, where he was executive vice president and headed the company's mortgage operations.
He becomes the fourth chairman in Ryland's 27-year history.
Mr. Brewster had been chairman since July 1993, when Mr. Schipke left for the top position at Sunbeam-Oster, a Florida-based appliance manufacturer. Mr. Brewster, 68, is expected to resume work full-time at the law firm of Piper & Marbury, where he is a partner.
Ryland also announced that yesterday marked the last board meeting for retiring Chief Financial Officer Alan P. Hoblitzell Jr. Last month, the company announced it had hired Michael Mangan, a former GMAC Corp. executive, to fill the position. A replacement for Mr. Hoblitzell's seat on the board is expected soon.
Despite the board's confidence, Mr. Dreier acknowledged Ryland still has a long way to go to improve its homebuilding profit margins, which are far below the industry's average.
"We need to get back to being an industry leader, which we haven't done yet," Mr. Dreier said.