KB Home loss narrows in second quarter to $24.1 million
Los Angeles builder KB Home lost just over $24 million in the second quarter, a substantially narrower loss than during the same period last year.
New-home sales have struggled in the face of the difficult economy. Builders have also faced competition from foreclosures. But sales have picked up this year after hitting a low in 2011.
KB Home posted a loss of $24.1 million, or 31 cents a share, compared with a $68.5-million loss, or 89 cents, in the second quarter last year. The company reported revenue of $302.9 million, compared with $271.7 million last year.
Over the last 12 months, KB Home has been the worst performer of the 11-member Standard & Poor’s 1500 home-building index, according to Bloomberg News. It has posted losses in eight of the last 10 quarters. On Friday, KB Home shares rose $1.10, or 12.6%, to $9.80.
Chief Executive Jeffrey T. Metzger said the company expected to return to profitability by the fourth quarter and to be profitable in 2013. In a conference call with investors, Metzger said “the overall housing market appears to have largely stabilized and is moving into a period of recovery.”
The company delivered 1,290 homes in the second quarter compared with 1,265 last year.
The West Coast was KB Home’s second-largest market, delivering 600 homes in the region. The company’s central division was its largest, with 900 homes delivered.