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| KB Home's 2007 1Q results reflect downturn in the housing market  KB Home, one of the largest homebuilders in the United States and France, said that net profit for its fiscal first quarter fell 84% due to sharp decline in the U.S. housing market. Net income in the 2007 first quarter totaled $27.5 million, or $.34 per diluted share, down from $173.3 million, or $2.01 per diluted share, in the prior year's first quarter. For its fiscal first quarter that ended Feb. 28, consolidated revenues totaled $1.77 billion, down 19% from $2.19 billion in the same quarter of 2006, reflecting a 16% decrease in unit deliveries and a 5% decline in the average selling price.Company-wide first quarter net orders decreased 12% to 7,677 in 2007 from 8,719 in 2006 with most of the decline occurring in the Southwest and Central regions. The company's cancellation rate improved sharply in the first quarter of 2007 to 31% compared to 48% in fourth quarter of 2006 and 53% in the third quarter of 2006. Backlog at February 28, 2007 totaled 18,406 units, representing potential future housing revenues of approximately $4.78 billion. Backlog levels declined 31% and 34%, respectively, from the company's 26,536 backlog units and $7.24 billion in backlog value, which were at record first quarter levels, at February 28, 2006. write your comments about the article :: © 2007 Construction News :: home page |