KB Homes Posts $255.9 Million Second Quarter Net Loss
- Jun 27, 2008
Los Angeles–Due to continuing credit and housing problems, KB Home announced a fiscal second quarter loss of $255.9 million, The Wall Street Journal said Friday.The Los Angeles-based homebuilder posted a net loss of $148.7 million in 2007.The 2008 second quarter loss included writedowns of $201.1 million and a $98.9 million impact from reducing the value of deferred tax assets. Revenue fell to $639.1 million–a 55 percent decline.Because of a reduction in active communities, KB’s new home deliveries declined 41 percent to 2,810. Net orders also dropped, declining 42 percent to 4,200. “Persistently poor demand for new homes during the second quarter amplified pricing pressures and diminished asset values in many of our served markets, requiring us to recognize additional non-cash charges for inventory and joint venture impairments, abandonments and the write-off of goodwill, all of which significantly reduced our operating results,” said President and Chief Executive Jeffrey Mezger.