US homebuilder KB home saw its net second quarter loss widen to US$ 68.5 million compared to the US$ 30.7 million net loss it reported for the same period in 2010, but said the worst of the crisis in the market appeared to be behind it.
Nevertheless, the prospect of a recovery is still some way off, according to the company. KB Home president and CEO Jeffrey Mezger said uncertainty and caution about the economy were keeping many potential homebuyers from entering the market.
"We believe the current housing market conditions will likely continue until there are meaningful and sustained improvements in job growth and consumer confidence," he said.
"Although a broad-based housing recovery remains stalled, it appears that the worst of the crisis is behind the homebuilding industry as select markets for new homes are showing signs of stability."
Land option abandonments
The company's first quarter loss was compounded by charges of US$ 20.6 million relating to land option contract abandonments, as well as a US$ 14.6 million loss on a loan guaranty relating to the company's South Edge project joint venture - a residential development in Las Vegas which has gone bankrupt.
Revenues for the period were US$ 271.7, down -27% year-on-year. The decrease was mainly due to lower housing revenues, reflecting a -29% decrease in the number of homes completed in the second quarter to 1265.
At May 31, 2011, the Company had 2422 homes in backlog, representing projected future housing revenues of approximately US$ 501.5 million, compared to a backlog of 3175 homes at the same point last year, representing projected future housing revenues of US$ 648.2 million.
Nevertheless, the company said it expected to see increases in its deliveries and revenues for the remaining quarters of the year.