Industry News

Several builders report tough times, net losses

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Home builder KB Home on Thursday reported a $148.7 million loss in the second quarter ended May 31, which company officials blamed on a housing oversupply, affordability problems, and tightening credit in the subprime and near-prime mortgage markets. Other large, publicly traded builders have been hit hard by the market downturn, too, which struck more suddenly and severely than some economists and analysts expected. Builder Lennar Corp., for example, on June 26 reported a second-quarter net loss of $244.2 million, compared with net earnings of $324.7 million for second-quarter 2006. KB Home's net loss in the second quarter represents a 172.4 percent decline from its net income of $205.4 million in second-quarter 2006. The company reported $1.41 billion in second-quarter revenues, down 35.9 percent compared to revenues of $2.2 billion in second-quarter 2006. The company's second-quarter loss amounted to $1.93 per share compared to a gain of $2.45 per share in second-quarter 2006. The l...