US housing market improvements continue
27 December 2012
US homebuilder KB Home expects the country’s housing market to continue to strengthen after reporting solid improvements for the 12 months ending November 30, 2012.
The contractor reported full-year revenues of US$ 1.6 billion, up +19% compared to last year, while its full-year net loss also narrowed to US$ 59 million from US$ 120 million a year ago.
Potential future housing revenues in the company's backlog at November 30, 2012, rose to US$ 619 million, up +35% from the same point in 2011 and reaching the highest fourth quarter-end level since 2007.
President and CEO Jeffrey Mezger said KB Home benefitted from better housing market conditions and increased demand for larger homes, driving its average selling prices higher in all of its regions.
He said the company expected housing demand to continue to strengthen, particularly as more households facing rising rental costs consider the benefits of homeownership and emerge from the sidelines.
"Although the strength of the economy and pending federal budget decisions are important considerations that could potentially disrupt the housing recovery and cause us to shift our current plans, we believe that, with our higher backlog, more community openings on the horizon, and the continued improvement we are expecting in our performance as we move ahead, we are well positioned to be profitable for 2013," Mr Mezger said.