Builder KB Home’s fiscal first-quarter loss widened sharply as plunging orders fueled a steep revenue drop and charges weighed on the bottom line, according to earnings reported today.
KB Home is based in Los Angeles and builds in cities nationwide, including in seven Colorado communities.
Like most builders, Los Angeles-based KB Home faced a tough year-over-year comparison because the federal tax credit that expired in early 2010 pulled demand forward.
Since then, the industry has seen sales fall off dramatically.In the latest period, KB Home’s deliveries tumbled 28 percent, while net orders dropped 32 percent.
Still, builders say they’re optimistic because consumer visits to model homes and sales centers have picked up recently.
“As this year’s spring selling season has commenced, we are encouraged by the higher traffic we experienced in the first quarter compared to a year ago,” Chief Executive Jeff Mezger said in the pre-market release.
For the quarter ended Feb. 28, KB Home reported a loss of $114.5 million, or $1.49 a share, compared with a year-earlier loss of $54.7 million, or 71 cents a share.
