KB Home had wider losses
National home builder KB Home saw wider losses in the second quarter, a further testament to weakness in the housing market throughout the United States.
Total revenues declined significantly, down 54 percent to $639.7 million from $1.41 billion in the same period last year. Losses for the second quarter were $255.9 million, wider than the $148.7 million in losses recorded in the same period last year.
The builder delivered 2,810 homes at an average selling price of $226,600 in the second quarter of 2008. Strikingly, in last year’s second quarter, KB Home delivered 4,776 homes at an average selling price of $271,600.
KB Home was hit with numerous charges, including a $176.5 million charge for inventory and joint venture issues, as well as the abandonment of land options contracts.
“Housing market conditions remain difficult for the home-building industry, with inventories of unsold homes expanding as foreclosures rise to record highs, and consumer confidence continuing to deteriorate amid signs of weakness in the general economy,” said Jeffrey Mezger, president and CEO. “Despite substantially lower home prices, relatively low interest rates and an abundance of choices, potential new home buyers remain reluctant to purchase a home.”
Los Angeles-based KB Home has operating divisions in nine states.