KB Home records $35.6 million in losses
Los Angeles-based KB Home was hit with a tough third quarter, showing $35.6 million in net losses compared with earnings of $153 million in last year’s second quarter.
Sales dropped 32 percent to $1.54 billion from $2.28 billion in the year-ago period.
"Our third-quarter results reflect the seriously challenging market conditions that prevail for homebuilders across most of the nation," said Jeffrey Mezger, president and CEO. Mezger said a combination of tough factors has made selling homes much more difficult -- including an oversupply of unsold homes and resale homes, “downward pressure’” on home values, tightened lending standards, high foreclosure rates and greater buyer caution.
The company incurred $690.1 million in charges related to inventory and joint venture impairments and the abandonment of land option contracts.
"Despite the disappointing third-quarter loss, we are making steady progress on strengthening our balance sheet and aligning our operations and investment strategy with current market conditions and our longer-term expectations for the business," Mezger said.
KB Home is one of country’s largest homebuilders, with operating divisions in 15 states.