1-KB Home posts deeper loss in 2nd qtr
June 27, 2008
BOSTON (Reuters) - KB Home , the No. 5 U.S. home builder, posted a deeper quarterly loss Friday on tumbling revenue as the United States faced its deepest housing slump in decades.
KB reported a net loss of $255.9 million, or $3.30 per share, in its second quarter, compared with a loss of $148.7 million, or $1.93 per share, last year.
Factoring out a $98.9 million valuation allowance charge, the loss came to $2.03 per share in the quarter, compared with the average Wall Street loss estimate of 90 cents a share, according to Reuters Estimates.
Revenue plunged by more than one-half, to $639.1 million from $1.41 billion, hurt by a 41 percent decrease in the number of homes sold and a 17 percent decline in average price.
"Persistently poor demand for new homes during the second quarter amplified pricing pressures and diminished asset values in many of our served markets," said Jeffrey Mezger, the company's president and chief executive. "Potential new home buyers remain reluctant to purchase a home."
The company said net new home orders fell 42 percent in the quarter to 4,200.
KB shares fell 2.6 percent to $17.65 in premarket trading.
As of Thursday's close, the company's shares were down 16 percent this year, a slightly sharper decline than the 14.6 percent slide of the Dow Jones U.S. home builder index .
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