KB Home records $35.6 million in losses
Los Angeles-based KB Home was hit with a tough third quarter, showing $35.6 million in net losses compared with earnings of $153 million in last year’s second quarter.
Sales dropped 32 percent to $1.54 billion from $2.28 billion in the year-ago period.
“Our third-quarter results reflect the seriously challenging market conditions that prevail for homebuilders across most of the nation,” said Jeffrey Mezger, president and CEO. Mezger said a combination of tough factors has made selling homes much more difficult — including an oversupply of unsold homes and resale homes, “downward pressure’” on home values, tightened lending standards, high foreclosure rates and greater buyer caution.
The company incurred $690.1 million in charges related to inventory and joint venture impairments and the abandonment of land option contracts.
“Despite the disappointing third-quarter loss, we are making steady progress on strengthening our balance sheet and aligning our operations and investment strategy with current market conditions and our longer-term expectations for the business,” Mezger said.
KB Home is one of country’s largest homebuilders, with operating divisions in 15 states.
Tembec announces temporary shutdown of mills
Temiscaming, Quebec-based Tembec has announced temporary shutdowns at its sawmills in Elko and Canal Flats, British Columbia.
“These shutdowns are due to a combination of factors,” said Dennis Rounsville, executive vp and president of Tembec’s Forest Products Group. “These include the sharp decline in demand and prices for lumber and the impact of the high value of the Canadian dollar.”
The Elko sawmill/planer mills will close for a minimum of two weeks starting Oct. 1, and the Canal Flats sawmill/planer mills will take downtime beginning Oct. 15.
The Canal Flats and Elko sawmills and planer mills have an annual production capacity of 420,000 Mfbm of SPF lumber and employ about 480 people.
Tembec has already shut down facilities in Timmins and Kirkland Lake, Ontario, and La Sarre and BZarn, Quebec.
Canfor acquires assets of Chesterfield Lumber
Vancouver-based wood products company Canfor has acquired the assets of South Carolina-based Chesterfield Lumber for $18 million. The acquisition will be made by Canfor’s wholly owned subsidiary, New South.
The Darlington, S.C.-based Chesterfield mill has the capacity to produce 140 million board feet of southern yellow pine annually.
The mill is located between two existing mills owned by New South — at Conway and Camden, S.C.
The transaction is subject to closing conditions and is expected to close in the fourth quarter of 2007.