KB Home's loss widens, but orders for new homes rise
The company reported a net loss of $9.6 million, or 13 cents per share, for the quarter ended Aug. 31. That compared with a net loss of $1.4 million, or 2 cents per share, for the third quarter of 2010.
KB Home's revenue was $367.3 million in the third quarter, down 27% from $501.0 million during the year-earlier period.
One bright spot: The company said that its orders for new homes jumped 40% to 1,838 from 1,314 in third quarter of 2010.
"We achieved encouraging operational and financial results in the third quarter despite the ongoing difficult housing environment," KB Home CEO Jeffrey Mezger said in a statement.
Home builders are facing intense pressure as investors rich with cash and first-time buyers compete for bargains. Those buyers have mostly been buying foreclosures and other so-called distressed properties.
-- Alejandro Lazo
Photo: KB Home says that despite widening losses, orders for new homes rose 40% in the third quarter. Credit: Associated Press