KB Home Q2 net loss narrows
Los Angeles-based KB Home reported a second quarter net loss of $24.1 million, compared with a net loss of $68.5 million in the year-earlier quarter.
For the second quarter ended May 31, revenues totaled $302.9 million, up 11% from $271.7 million for the second quarter of 2011. The company pointed to an increase in the number of homes delivered and a higher average selling price.
Three of the company’s four home-building regions posted year-over-year growth, with revenues up 24% in the West Coast region, 5% in the Southeast region and 4% in the Central region.
KB Home delivered 1,290 homes, up 2% from the year-earlier quarter, with increases of 13% and 5% in the company’s Central and Southeast regions, respectively, partly offset by decreases in the West Coast and Southwest regions.
"Our second-quarter results reflect the continued repositioning of our operations and investments to stronger, highly desirable, land-constrained submarkets that support sales of larger, higher-priced homes to our core first-time and first move-up customers," said Jeffrey Mezger, president and CEO. "The impact of our strategic product and community placement can be seen in our improved financial and operating results in the quarter as we pursue our goal of returning to profitability.
"Entering the second half of 2012, we have a strong backlog of homes with higher selling prices and better margins to help restore profitability, and we anticipate achieving further gains in our margin performance as our revenue growth and cost-management efforts take hold.”
For the six months ended May 31, the company reported a net loss of $69.9 million, compared with a net loss of $183.0 million in the first six months of 2011. Revenues totaled $557.4 million, up 19% from $468.7 million for the year-earlier period.
Homes delivered increased 10% to 2,440, up from 2,214 homes delivered in the year-earlier period.
The home builder was recently recognized by the U.S. Environmental Protection Agency with a company-record 14 Energy Star Leadership in Housing Awards. The company has built more than 68,000 Energy Star homes since joining the program in 2000.
GSC becomes stocking distributor for Georgia-Pacific engineered lumber
Georgia Structural Components (GSC), the newly formed wholesale division of Short & Paulk Supply in Tifton, Ga., has recently become a stocking distributor for Georgia Pacific engineered lumber products.
"We’ve been making roof trusses in our Tifton Truss plant for years," said S&P CEO Jay Short. "It just makes sense to expand our offering to the wholesale trade with engineered wood products like GP’s Wood I Beam joists and Laminated Veneer Lumber. Now we have our customers’ needs covered from floor to roof with these trustworthy structural wood products."
GSC distributes roof trusses and Georgia-Pacific engineered wood products through the four Short & Paulk retail locations and its growing network of dealer locations. There are currently more than 15 dealer locations within 150 miles of GSC’s Tifton manufacturing facility.
In addition to its Tifton location, Short & Paulk operates lumberyards in Albany, Sylvester and Dawson.
Improving housing markets grows by four
The list of U.S. housing markets that showed measurable and sustained improvement rose by four to include 84 metro areas in July, according to the National Association of Home Builders/First American Improving Markets Index (IMI). This number includes representatives from 32 states plus the District of Columbia.
The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. This month’s IMI includes 73 metros that held their positions on the list from June, as well as 11 newly added markets. Notable new entries include Prescott, Ariz.; Springfield, Mass.; St. Cloud, Minn.; and Houston.
"The geographic diversity and growing number of metros on the latest IMI help spotlight the improvements we have begun to see in terms of home prices and job market conditions across certain parts of this country, which in turn are spurring more demand for new homes," said NAHB chairman Barry Rutenberg, a home builder from Gainesville, Fla. "That said, our members continue to assert the need for more reasonable credit standards and more accurate appraisal methods to perpetuate this positive momentum."
"The modest increase in the July IMI is encouraging because it indicates that individual housing markets continue to regain their footing despite some recent reports of weakening in the broader economy," added NAHB chief economist David Crowe. "This is evidence that the housing recovery is slowly but surely taking root, one market at a time."
The three indicators that are analyzed to generate the IMI list are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. A complete list of all 84 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in July, is available at nahb.org/imi.