Industry News

KB Home reports $50 million net loss in Q4

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Home builder KB Home today reported a net loss of $49.6 million, or 64 cents per diluted share in the fourth quarter, compared with net income of $304.4 million, or $3.44 per diluted share, in fourth-quarter 2005. For the full year in 2006, KB Home reported a net income of $482.4 million, down 41 percent compared with $823.7 million in 2005. On Nov. 12, 2006, the company reported the preliminary findings of an independent review of its stock-option grant practices, and the company is restating prior-period financial statements as a result of this stock-option review. The company announced that it will file its third-quarter report and final year report today with the Securities and Exchange Commission. "Both reports include restated financial statements for prior periods," according to the announcement. In November, KB Home announced the resignation of CEO Bruce Karatz, who had led the building company for 34 years. Karatz agreed to pay $13 million to KB Home after an inves...