KB Home Narrows Loss, but Backlog Falls

Los Angeles, CA, Sept. 27, 2010--KB Home said Friday it lost $1.4 million, or 2 cents a share, in the three months ended Aug. 31.

That compares with a loss of $66 million, or 87 cents a share, a year earlier.

However, the company's backlog, which represents future housing revenue, dropped, and net orders fell 39 percent, as demand slowed after federal homebuyer tax credits expired in April.

President and CEO Jeffrey Mezger said orders in June — traditionally one of the builder's best-selling months — fell by half versus the same month last year.

"While we have seen improvement in our net orders over the past few months, sales remain soft and the weak economy continues to be a major impediment to any housing recovery," Mezger said.

Revenue rose 9 percent to $501 million, the first year-over-year increase in almost four years.