KB Homes: No Improvement on the Housing Front Any Time Soon

Home builder KB Homes (NYSE:KBH) today reported financial results for its 3Q ended August 31, 2009.

The California based builder, which sells built-to-order homes in 10 states, said it lost $66 million during the quarter, or $0.87 per share, which was $0.29 worse than consensus that called for a loss of $0.58 per share. Revenues totaled $458.5 million, down 33% from $681.6 million – y/y basis, due to lower housing revenues.

Third quarter housing revenues were $454.2 million, down 32% from $668.3 million in the year-earlier quarter. The company said its backlog at the end of the 2009 third quarter decreased 22% to 3,722 homes from 4,774 homes at the end of 3Q08. Meanwhile, the average selling price fell 15% y/y to $202,800 from $239,700.

In the nine-month period ended August 31, 2009, the builder’s revenues totaled $1.15 billion, down 46% from $2.11 billion in the year-earlier period.

“The housing market overall remains in a transition where it will likely be some time before we see meaningful improvement in the economic conditions that are essential to our industry’s future growth,” said CEO Jeff Mezger. “While tentative indications are that some negative economic trends are slowing or leveling out to varying degrees in certain markets, the ongoing impact of and the potential for increased foreclosures and mortgage delinquencies, higher unemployment, tighter credit standards, and relatively weak consumer confidence make the timing and extent of a sustained rebound still uncertain.” [emphasis added]

KB Home has reported a loss for nine consecutive quarters, going back to its fiscal 2Q in 2007.

Tables: KB Home

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