KB, Like Other Builders, Sees Loss in Quarter

Los Angeles, CA, March 28, 2008--KB Home swung to a loss in the fiscal first quarter as the company was forced to take a large write-down related to falling home prices.

For the quarter ended Feb. 29, the company posted a loss of $268.2 million, or $3.47 per share, compared with a profit of $27.6 million, or 34 cents per share, a year ago.

The results included a charge of $223.9 million in write-downs related to falling home prices.

Revenue fell 43 percent to $794.2 million from $1.39 billion last year.

"Until prices stabilize and consumer confidence returns, we believe inventory levels will remain significantly out of balance with demand," CEO Jeffrey Mezger said in a statement.

"We do not anticipate meaningful improvement in these conditions in the near term, as it is likely to take some time for the market to absorb the current excess housing supply and for consumer confidence to improve."

KB's deliveries fell 43 percent to 2,928, and the average selling price dropped 7 percent to $248,200.