Tags: Earns | KB Home

KB Home's Loss Widens on Fewer Home Deliveries

Tuesday, 05 Apr 2011 09:05 AM

KB Home said Tuesday that its fiscal first-quarter loss widened, as the homebuilder delivered fewer homes and net orders declined.

But the Los Angeles company said it is encouraged by higher traffic at the beginning of spring selling season.

The company had a loss of $114.5 million, or $1.49 a share, for the three months ended Feb. 28. That compares with a loss of $54.7 million, or 71 cents a share, a year ago.

The quarter included a $45.1 million charge.

Analysts expected a loss of 25 cents a share.

Revenue dropped 25 percent to $196.9 million from $264 million, missing Wall Street's $225 million estimate.

Net orders fell 32 percent to 1,302 from 1,913, while homes delivered dropped 28 percent to 949.

In premarket trading, KB Home shares fell 8 percent, or 99 cents, to $11.21.

KB Home builds homes to order for entry level, move-up buyers and seniors in 12 states.

Home builders are hoping for a sales lift this spring after a dismal 2010, the fifth consecutive year that new home sales declined. Sales sank last year to the lowest level on records going back 47 years.

New home sales tumbled in January and February. Winter weather received some of the blame, but other signs also point to a soft start to this spring's home sales.

Last week, builder Lennar Corp. reported new home orders fell 12 percent from a year earlier for the three-month period ended in February.

Builders got a spring sales lift last year. This year, however, the industry doesn't have the aid of federal homebuyer tax credits to spur sales. And many would-be homebuyers remain deterred by high unemployment, strict lending standards and concerns that home values could drop further.

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KB Home said Tuesday that its fiscal first-quarter loss widened, as the homebuilder delivered fewer homes and net orders declined. But the Los Angeles company said it is encouraged by higher traffic at the beginning of spring selling season. The company had a loss of...
Earns,KB Home
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2011-05-05
 

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