KB Home rounds out rough fourth quarter, year
National home builder KB Home saw a net loss of $772.7 million in the fourth fiscal quarter, a deeper loss than the $49.6 million recorded in the same period last year.
Net revenue for the quarter was $2.07 billion, down 31 percent from $3.01 billion in the same period last year.
This decline reflected a 22 percent year-over-year decrease in new home deliveries to 8,132 in the fourth quarter from 10,386 in the 2006 fourth quarter, and a 12 percent year-over-year decrease in the average selling price to $247,800 in 2007 from $280,000 in 2006. During the quarter, the company took charges of $917.6 million for write-downs and tax expenses.
For the full year, the company saw a net loss of $929.4 million, swinging from net earnings of $482.4 million last year. Net revenue for the year was $6.4 billion, down 46.5 percent from $9.38 billion in 2006.
“The challenging market conditions we experienced through the first three quarters of 2007 continued during the fourth quarter,” said Jeffrey Mezger, president and CEO of KB Home.
Mezger listed several factors detrimental to KB Home’s business throughout 2007, including an oversupply of new and resale homes, increased foreclosure activity, heightened competition for home sales, reduced home affordability, turmoil in the mortgage and credit markets and decreased consumer confidence in purchasing homes.
Firm recalls pressure cookers
Importer Manttra has recalled about 38,250 pressure cookers, according to the Consumer Product Safety Commission, because of a flaw that can cause hot contents to spill from the item.
The pressure cookers were sold in Sears stores, as well as department stores including Kohl’s, Robinson’s and Carson Pirie Scott, from June 2003 through April 2007 for $70 to $100.
According to reports, the lid on the cooker can separate and allow hot contents to spill out if the item is not closed properly. Manttra has received two reports of minor burn injuries.
The cookers were manufactured by TTK Prestige of India.
Sherwin-Williams acquires stake in Mexico-based firm
Cleveland-based Sherwin-Williams has acquired certain assets of Monterrey, Mexico-based Flex Recubrimientos, a group of companies with products primarily in the automotive refinish market.
Terms of the deal were not disclosed.
The privately owned companies under Flex Recubrimientos include manufacturers and distributors of automotive after-market body fillers, putties, primers and other vehicle refinish products. The group currently operates a manufacturing facility in Monterrey with distribution warehouses in Monterrey, Mexico City, Guadalajara and Tijuana.
“We are pleased to bring the Flex group, a well-respected Mexican company, and their employees into the Sherwin-Williams family,” said Christopher Connor, chairman and CEO of Sherwin-Williams.