KB Home Narrows Loss, Is Uncertain About Recovery

Los Angeles, CA, Sept. 25, 2009--KB Home said its losses narrowed as orders rose 62% from the year-earlier quarter, but the home builder warned that a weak economy will delay a meaningful recovery in residential real estate.

The company said its fiscal third-quarter net loss narrowed to $66 million, or $0.87 a share, from $144.7 million, or $1.87 a share, in the year-ago period.

Total revenue for the August quarter dropped 33% to $458.5 million, while net orders jumped 62% to 2,158.

"We are encouraged by the positive net order results we achieved in the quarter but remain cautious given the current economic climate," said Chief Executive Jeff Mezger in the earnings release.

"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."