Sunday, September 28, 2008

KB Home posts third quarter net loss


Homebuilder KB Home recorded a higher net loss in the third quarter, as market volatility led to a decline in home sales when compared to the previous year.

Los Angeles-based KB Home (NYSE:KBH), which has a significant homebuilding presence in Dallas-Fort Worth, recorded a third quarter net loss of $144.7 million, or $1.87 per diluted share, up from $35.6 million, or 46 cents per diluted share for the same period last year.
KB Home’s third quarter financial report included a pre-tax, non-cash charge of $82.2 million for inventory and joint venture impairments, the company said.

A charge of $58.1 million on a valuation allowance against net deferred tax assets also hit in the third quarter.

KB’s revenue for the third quarter was $681.6 million, down significantly from $1.54 billion for the third quarter of last year. The revenue drop is attributed mostly to a decline in housing sales.

Also, I was told Choice laid off 28 employees. Portrait Homes also shut is doors last week.

Residential new home builders are feeling the pain of the market and negative media on real estate.

Brad Holden
Holden New Homes

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