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KB Home had wider losses

BY HBSDEALER Staff

National home builder KB Home saw wider losses in the second quarter, a further testament to weakness in the housing market throughout the United States.

Total revenues declined significantly, down 54 percent to $639.7 million from $1.41 billion in the same period last year. Losses for the second quarter were $255.9 million, wider than the $148.7 million in losses recorded in the same period last year.

The builder delivered 2,810 homes at an average selling price of $226,600 in the second quarter of 2008. Strikingly, in last year’s second quarter, KB Home delivered 4,776 homes at an average selling price of $271,600.

KB Home was hit with numerous charges, including a $176.5 million charge for inventory and joint venture issues, as well as the abandonment of land options contracts.

“Housing market conditions remain difficult for the home-building industry, with inventories of unsold homes expanding as foreclosures rise to record highs, and consumer confidence continuing to deteriorate amid signs of weakness in the general economy,” said Jeffrey Mezger, president and CEO. “Despite substantially lower home prices, relatively low interest rates and an abundance of choices, potential new home buyers remain reluctant to purchase a home.”

Los Angeles-based KB Home has operating divisions in nine states.

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Big players offer fourth of July promotions

BY HBSDEALER Staff

The fourth of July is a time for strong barbecue sales and, many retailers hope, a time for a significant spike in DIY activity. Home Depot, Lowe’s and Menards are offering a number of promotions around the holiday to capitalize on the holiday week.

The fourth of July is a time for strong barbecue sales and, many retailers hope, a time for a significant spike in DIY activity. Home Depot, Lowe’s and Menards are offering a number of promotions around the holiday to capitalize on the holiday week.

Home Depot also is offering the 10 percent military discount, from July 3 through July 6, on purchases up to $2,000. The countryOs largest home channel retailer is also offering a 10 percent discount on appliances, and a similar rebate promotion on Behr paint — $5 off one gallon and $20 off a five-gallon container. Other items and services being promoted over the holiday include $200 off Kampar patio sets; $199 whole-home carpet installation; 10 percent off various kitchen countertops, sinks and cabinets; and free shipping for certain air conditioners.

At Menards, the Midwestern retailer is putting a heavy emphasis on patriotic items, including American flag lawn chairs and T-shirts. Flag kits and red, white and blue lights also are being promoted. The retailer is offering 15 percent off Coleman camping gear for the holiday, as well as 20 percent off certain barbecue tools and sale prices on all grills.

Other promotions at Menards include a $7 rebate on a gallon of Dutch Boy paint and a $35 rebate on a five-gallon purchase. UltraDeck decking is on sale over the holiday season, and the retailer is offering 14 percent off Crestline and PeachTree brand windows.

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Thieves use display tools to rob Home Depot store

BY HBSDEALER Staff

A Miramar, Fla., Home Depot store was robbed this weekend by thieves who used power tools displayed in the store to break into a safe in the store’s vault room, according to a report by the Associated Press.

The amount of money stolen from the store has not yet been released. The thieves reportedly used the power tools to open the door to the vault room and cut the hinges off the store’s safe.

According to a local CBS affiliate, employees discovered the robbery when reporting for work at 5 a.m. on Sunday.

The employees also discovered the store’s alarm system had been disabled, and it was unclear whether the store’s surveillance system was able to capture the incident.

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