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JACKSONVILLE, FL-Lagging sales in the St. Joe Co.'s existingresidential resort business has pulled down first-quarter profitsbut the commercial and retail segments of Florida's largestlandowner remain strong, says company chairman and CEO Peter S.Rummell. The company plans to introduce a new primary residentialproduct throughout the remainder of 2006.<pNet income for thefirst three months of this year total $3.7 million or five centsper diluted share, down 76% from $15.4 million or 20 cents pershare in first quarter 2005. Revenue of $167.4 million was down9.4% from $184.7 million in the same period last year.

"While we are seeing weaker sales in our existing resortresidential business, there are signs of relative strength in otherproduct categories, including our primary residential, commercialand rural land businesses," Rummell says in a prepared statement."We are moving quickly to capitalize on these business segments bytaking advantage of the flexibility provided by the entitlements inour development pipeline."