KB Home Post Wider Loss in Fiscal Q3
The fifth largest US homebuilder KB Home on Friday said its net loss has widen to $9.6 million in the quarter that ended August 31, compared to just $1.4 million a year ago.
KB Home on Friday reported a wider loss in its fiscal third quarter, noting the significant drop in new home deliveries from a year ago when tax credit to home buyers helped inflate purchases.
In a report, KB Home said its net loss has widen to $9.6 million in the quarter that ended August 31, compared to just $1.4 million a year ago. The homebuilder also said that its revenue dropped 27 percent to $367.3 million from $501 million.
Many homebuilders in the United States suffered the fate as that of KB Home with much of the reported increases in home orders were just hangover effects of the expired tax credit program by the government.
But many economists remained confident that the US housing market would soon recover from the blows of recession, noting that the losses suffered by KB Home were stronger than the projected 16 cents per share on revenue of $390.4 million.
Also, the company’s shares rose by 5.6 percent or 32 cents per share to $6.04 on Friday’s trading.
During the period, KB Home delivered some 1,603 new houses, which is lower than the 2,320 recorded in the same quarter in 2010.
To date, the company ranks as the fifth-largest homebuilder in the US with home orders available in 12 states.