KB Home’s loss widens in 3rd quarter
Los Angeles home builder KB Home’s loss widened slightly in its fiscal third quarter as the nation’s housing market continued to show weakness, although the company said orders for new homes increased.
The company reported a loss Friday of $9.6 million, or 13 cents a share, for the quarter ended Aug. 31, compared with a loss of $1.4 million, or 2 cents, a year earlier.
Revenue was $367.3 million, down 27% from $501 million during the year-earlier period.
One bright spot: The company said its orders for new homes jumped 40% to 1,838 from 1,314 in the third quarter of 2010.
“We achieved encouraging operational and financial results in the third quarter despite the ongoing difficult housing environment,” KB Home Chief Executive Jeffrey Mezger said in a statement.
Home builders are facing intense pressure as investors rich with cash and first-time buyers compete for bargains. Those buyers have mostly been buying foreclosures and other so-called distressed properties.
KB Home shares rose 19 cents, or 3.3%, to $5.91.
