Revenue Sinks at KB Home

Updated from 9:18 a.m. EDT

KB Home (KBH Quote) became the second U.S. homebuilder this week to post dismal numbers, saying its third-quarter revenue slumped 32% from the same period a year earlier.

Owing to the slowdown in the housing market, revenue totaled $1.54 billion for the quarter ended Aug. 31, compared with $2.28 billion a year ago. Home deliveries declined 28% year over year to 5,699, and the average selling price of houses fell to $267,700 from $288,000.

KB had a loss from continuing operations, net of an income tax benefit, of $478.6 million, or $6.19 a share. The results reflect $690.1 million in pretax noncash charges related to inventory and joint-venture impairments and the abandonment of land option contracts, along with $107.9 million for a goodwill impairment. ...