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| KB Home posts quarterly loss Los Angeles-based KB Home, one of America's largest homebuilders, reported financial results for its second quarter ended May 31, 2007. KB's revenues totaled $1.41 billion in the second quarter of 2007, down from $2.20 billion in the year-earlier quarter, due to a decline in housing revenues that was partly offset by an increase in land sale revenues. KB reported a loss from continuing operations of $174.2 million or $2.26 per diluted share in the second quarter of 2007, largely due to a pretax, non-cash charge of $308.2 million related to inventory and joint venture impairments and the abandonment of land option contracts. In the second quarter of 2006, the company generated income from continuing operations of $184.4 million or $2.20 per diluted share. KB posted a net loss in the current quarter of $148.7 million or $1.93 per diluted share, compared to net income of $205.4 million or $2.45 per diluted share generated in the year-earlier quarter. For the six months ended May 31, 2007, revenues totaled $2.80 billion, down 31% from $4.08 billion in the six months ended May 31, 2006. Unit deliveries in the first six months of fiscal 2007 declined 28% year-over-year to 9, 912, and the average selling price decreased 8% year-over-year to $269, 400. For the current six-month period, KB generated a loss from continuing operations of $163.5 million or $2.12 per diluted share, including a pretax, non-cash charge of $316.9 million for impairments and abandonments. In the same period a year ago, the company reported income from continuing operations of $343.5 million or $4.04 per diluted share. "Our second quarter results reflect the current oversupply of new and resale housing inventory, a difficult situation compounded by aggressive competition and continued weak demand, " said Jeffrey Mezger, president and chief executive officer. Company-wide revenues (excluding the French discontinued operations) totaled $1.41 billion for the quarter ended May 31, 2007, a 36% decline from $2.20 billion for the quarter ended May 31, 2006, the result of lower revenues from homebuilding operations. KB's construction business generated an operating loss of $263.0 million in the second quarter of 2007, a decrease of $556.5 million from operating income of $293.5 million in the second quarter of 2006, reflecting losses from both homebuilding operations and land sales. In May, KB announced it would sell its entire 49% equity interest in its French subsidiary, Kaufman & Broad SA. The transaction is expected to close in the third quarter of 2007 and generate total gross proceeds of approximately $800 million. write your comments about the article :: © 2007 Construction News :: home page |