KB Home earnings up 21 percent

Thursday, Jan. 10, 2002 | 9:47 a.m.

SUN STAFF AND WIRE REPORTS

KB Home, the third largest U.S. home builder by homes sold and the largest in Las Vegas, today said its fiscal fourth quarter earnings rose a better-than-expected 21 percent as low mortgage rates boosted home sales.

KB closed on 3,027 homes in 2001 in the Las Vegas area, where its biggest competitor is Pulte Home Corp., which last year bought Del Webb Corp.

Net income rose to $88.5 million, or $2.03 a share, for the three months ended Nov. 30, from $73.4 million, or $2.00, a year earlier, the company said. The per share earnings reflect an increase in shares outstanding. Revenue rose 17 percent to $1.45 billion.

The 30-year mortgage rate averaged 1.13 percentage point lower in the three months than a year earlier, helping push U.S. new home sales to a record in 2001, according to the National Association of Realtors.

KB Home, which changed its name from Kaufman & Broad Corp. last year, was expected to earn $1.82 a share, according to a survey of analysts by Thomson Financial/First Call.

KB's home sales rose 10 percent in the quarter, to 7,814 homes, including 1,320 homes in France, where its Kaufman & Broad S.A. unit is one of the largest builders.

Bloomberg News contributed to this report