KB Home Reports 2Q Loss

Citing expanding inventories of unsold homes, Los Angeles-based homebuilder KB Home has reported a net loss of $255.9 million ($3.30 per share) for the fiscal quarter ended May 31, compared with a net loss of $148.7 million ($1.93 per share) a year earlier. The company attributed the current loss largely to pretax noncash charges of $176.5 million for inventory and joint venture impairments and the abandonment of certain land option contracts. It also cited a $98.9 million valuation allowance charge and a $24.6 million goodwill impairment charge. "Persistently poor demand for new homes during the second quarter amplified pricing pressures and diminished asset values in many of our served markets...," said Jeffrey Mezger, the company's president and chief executive officer. "Despite substantially lower home prices, relatively low interest rates, and an abundance of choices, potential new homebuyers remain reluctant to purchase a home." The company can be found online at http://www.kbhome.com.