KB Home reports strong third quarter
KB Home reported third-quarter revenues increased 16% to $424.5 million, compared with $367.3 million in the third quarter of 2011. The company cited growth in the number of homes delivered and a higher average selling price for the increase.
Net income for the quarter ended Aug. 31 totaled $3.3 million, up $12.9 million from a net loss of $9.6 million in the year-earlier quarter.
The company’s home-0building operating income increased to $10.9 million in the current quarter, up from $1.4 million in the year-earlier quarter.
The home builder delivered 1,720 homes, up 7% from the year-earlier quarter, with three of its four home-building regions posting year-over-year increases. The overall average selling price of $245,100 rose by $17,700, or 8%, from $227,400 for the year-earlier quarter.
For the nine months ended Aug. 31, revenues totaled $981.9 million, up 17% from $836.0 million for the year-earlier period. The company’s net loss of $66.7 million improved from the net loss of $192.7 million for the nine months ended Aug. 31, 2011.
Homes delivered increased 9% to 4,160, up from 3,817 in the year-earlier period.
The overall average selling price of $234,100 was up 8% from $217,400 for the corresponding period of 2011.
Home prices continue upward trend
The S&P/Case Shiller Index, a bellwether for the new housing market, reported that all 20 cities that it tracks on its home-price composites recorded positive monthly changes for the third consecutive month. Excluding a slight dip for Detroit last April, the composites are on a four-month roll for home price increases.
The average home price in July 2012 grew by 1.5% for the 10-city composite and by 1.6% for the 20-city composite versus June 2012.
Fifteen of the 20 MSAs and both composites posted better annual returns in July as compared with June 2012. Dallas and Washington, D.C., saw no change in their annual rates; and Cleveland, Detroit and New York saw their rates worsen in July, with respective returns of +0.4%, +6.2% and -2.6%. After nine consecutive months of double-digit annual declines, Atlanta finally improved to a single-digit decline of 9.9%.
Hurd in national spotlight
Hurd Windows and Doors was featured on ABC World News with Diane Sawyer in a Sept. 20 feature that highlighted U.S.-based businesses that are making a domestic and global economic impact. The 90-year-old custom window and door manufacturer was recognized for competing on a worldwide basis out of its Midwestern manufacturing facilities in Medford and Merrill, Wisconsin.
As part of the segment, Hurd’s VP product and service Stu Brown cited examples of windows that were being exported to China and Canada. Hurd has exported products to more than 30 countries around the world, including Japan, Turkey, Israel, Philippines, Argentina, Ireland, Poland, India and Thailand.
Hurd nationally markets all wood and wood-clad widows and patio doors through a network of more than 400 distributors serving the residential and light commercial construction markets. Hurd’s sister company, Superseal, markets vinyl replacement and new construction windows that are manufactured in the Merrill facility.
A large group of Hurd’s Medford-based employees were also featured in the piece, showcasing some of the products they helped manufacture. “Our workforce has grown 10% in the last year,” explained Hurd president Dominic Truniger. “In fact, in the past 18 months, we’ve grown our workforce by 25%.”
ABC reported that, for the first time since the 1930s, U.S. manufacturers have the export advantage in the global marketplace. U.S. workers are considered the most productive workers in the world, according to the report, which makes them as much as 45% less expensive than foreign competitors. Energy costs are being lowered by new technologies and previously untapped energy reserves, the segment noted. Shipping from U.S. ports is cheaper than from its international counterparts, according to the report.