Industry News

KB reports $35.6 million loss in Q3

Sale of French subsidiary staves off deeper loss

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Home builder KB Home (NYSE: KBH) on Thursday reported a net loss of $35.6 million in the third quarter ended Aug. 31, compared with net earnings of $153.2 million in the same quarter last year. And those losses were minimized by KB's sale of its French home-building subsidiary Kaufman & Broad SA, which generated total gross proceeds of $807.2 million and an after-tax gain of $438.1 million for the quarter. Without that boost, the quarterly net loss would have been $478.6 million, or $6.19 per diluted share, the company reported. The bulk of the loss was due to pretax noncash charges of $690.1 million relating to inventory and joint venture impairments and the company's abandonment of land-option contracts, KB Home reported in its earnings announcement. Revenues for the quarter totaled $1.54 billion, down 32 percent from $2.28 billion in third-quarter 2006, the company reported. Unit deliveries in the third quarter dropped 28 percent, falling from 7,893 units in third-qua...