KB Home, one of the nation’s largest homebuilders, reported a larger second-quarter loss Friday, as weak sales and falling home prices led to a 55% drop in revenue. The San Antonio News also reported that the company also booked charges to lower the value of unsold homes, joint venture deals and land option contracts.
The Los Angeles-based company reported a loss of $255.9 million, or $3.30 per share, for the three months ended May 31. A year ago, it lost $148.7 million, or $1.93 per share.
The latest results included a $176.5 million charge to cut the value of its unsold homes and to abandon some land option contracts.
Revenue plunged to $639.1 million from $1.41 billion in the year-ago period. The decline was driven by lower housing and land sale revenues, the builder said.
Analysts surveyed by Thomson Financial were expecting KB to post a loss of 94 cents per share on revenue of $691.3 million. The earnings estimates typically exclude one-time items.