National Builder Reports $773 Million Fourth Quarter Loss
- Jan 09, 2008
Los Angeles–Troubled by the ongoing U.S. housing decline, Los Angeles-based homebuilder KB Home announced a $773 million fiscal fourth quarter loss Tuesday, The Los Angeles Times reports.In the same period in 2006, KB’s loss was just under $50 million. KB Home Chief Executive Jeffrey Mezger told analysts Tuesday that the housing market would see more unrest, citing “oversupply, foreclosures, reduced affordability and declining consumer confidence.””Current conditions are not improving enough to clear inventories,” Mezger said.KB Home has cut jobs, reduced home construction and reduced its debt by $759 million. The company increased its cash balance by $625 to $1.3 billion. KB shares fell 9 percent Tuesday to a six-year low after the announcement.Damaged by falling home sales and prices, KB’s fourth quarter revenue dropped from $3.01 billion in 2006 to $2.07 billion. KB posted a fiscal 2007 loss of $929.4 million. The company showed a profit of $482.4 million in fiscal 2006. Revenue dropped 32 percent to $6.42 billion.