Serving The KoolAid
Yesterday #3 homebuilder Lennar's fourth straight quarterly loss
as revenue plunged and it wrote down more than $100 million worth of land and deposits.
Today, KB Home, #5 U.S. homebuilder, reported
a wider loss than analysts projected. Fiscal Q1 net loss was $268.2 million vs Q107 net income of $27.5 million.
KB wrote down $223.9 million in pretax expenses for the value of land, joint ventures and options on property.
Revenue fell 43% to $794.2 million; net orders -75%; homes sold -43%;. backlog -59%; average price -7.2%.
CEO Jeffrey Mezger:
"Our industry continues to confront a growing oversupply of new and resale homes, tight mortgage lending conditions and a highly competitive pricing environment.
We do not anticipate meaningful improvement in these conditions in the near term, as it is likely to take some time
for the market to absorb the current excess housing supply and for consumer confidence to improve. "
as revenue plunged and it wrote down more than $100 million worth of land and deposits.
Today, KB Home, #5 U.S. homebuilder, reported
a wider loss than analysts projected. Fiscal Q1 net loss was $268.2 million vs Q107 net income of $27.5 million.
KB wrote down $223.9 million in pretax expenses for the value of land, joint ventures and options on property.
Revenue fell 43% to $794.2 million; net orders -75%; homes sold -43%;. backlog -59%; average price -7.2%.
CEO Jeffrey Mezger:
"Our industry continues to confront a growing oversupply of new and resale homes, tight mortgage lending conditions and a highly competitive pricing environment.
We do not anticipate meaningful improvement in these conditions in the near term, as it is likely to take some time
for the market to absorb the current excess housing supply and for consumer confidence to improve. "
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