Profit declines for big LV homebuilder

Kaufman and Broad Home Corp. of Los Angeles, the largest homebuilder in Las Vegas, today reported a second quarter profit of $27.7 million, down slightly from the $28.6 million earned in the year-ago quarter.

Per share earnings, however, increased from 58 cents to 68 cents as fewer shares were outstanding in the latest quarter.

The results beat analyst expectations as reported by Zacks Investment Research of 63 cents per share.

K&B said income decreased from its mortgage banking operations because of recent interest rate hikes and increased competition from Internet mortage lending.

K&B said its e-commerce subsidiary, e.KB Inc., is working to lower costs while building long-term relationships with customers.

"The sales rates within our core homebuilding business continue to keep pace with last year's record highs, while we hope that our new business, e.KB, will help propel us to the next level of financial performance," Kaufman and Broad Chairman and Chief Executive Bruce Karatz said in a statement.

archive