CALIFORNIA : Kaufman & Broad Profit Up 36% for Quarter : Housing: Acquisitions, sales fueled by bustling economy are credited. French unit may be sold.

Kaufman & Broad Home Corp. said Thursday that its fiscal-third-quarter earnings rose a greater-than-expected 36% as it benefited from a hot housing market and acquisitions.

The Los Angeles-based company also said it’s considering selling its operations in France, where it is one of the country’s biggest home builders. Proceeds would be used to reduce debt or repurchase stock in an attempt to boost its sagging stock price, the company said.

For the quarter ended Aug. 31, Kaufman & Broad’s net income rose to $38.2 million, or 78 cents a share, from $28.1 million, or 68 cents, a year earlier.

Excluding a previously disclosed charge of $18.2 million for losses from unauthorized trading by an employee in its mortgage unit, Kaufman & Broad said net income would have been $1.02, above the average analysts’ estimate of 93 cents a share.

“Our third quarter reflects the strength of the housing market,” Bruce Karatz, chairman and chief executive, said in a statement.

Revenue increased 60%, to $1.06 billion from $659 million. The earnings include Lewis Homes, which Kaufman & Broad purchased for $593 million in January.

The number of homes sold and delivered rose 47% from a year earlier to 6,103. The average selling price of the homes increased 10.4% to $167,100.

Karatz said the company expects to post record revenue and earnings in fiscal 1999 and 2000.

Kaufman & Broad and other home builders are reaping the benefits of low interest rates, low unemployment and high consumer confidence, which have the housing market on track for another record year.

Even so, the shares of home builders are down on concerns that the good times won’t last much longer. Kaufman & Broad’s shares are off 36% so far this year. The shares rose 25 cents to close at $18.38 on the New York Stock Exchange.