KB Home (NYSE: KBH) announced Tuesday that the homebuilder turned a profit this quarter for the first time since early 2007, citing the federal tax credit for homebuyers, according to Associated Press.
The company earned $100.7 million, or $1.31 a share, in their fiscal fourth quarter, which included a tax gain of $191.7 million. On a pretax basis, KB Home lost $91 million as it abandoned land contracts and wrote down the value of joint ventures and inventory. In the fourth quarter of 2008, the builder lost $307.3 million, or $3.96 a share.
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Revenue dropped to $674.6 million from $919 million in the previous year.
Analysts polled by Thomson Reuters expected a loss of 42 cents a share on revenue of $577.8 million.
KB said its new home orders increased 12 percent to 1,446 in the quarter compared with the prior year, while the number of buyers canceling contracts fell to 31 percent from 46 percent.
New homes sales dropped 11 percent in November from October to the lowest level since last spring. The number of people preparing to buy a home in November also dropped.
For the year, KB Home lost $101.8 million, or $1.33 per share, compared to a 2008 loss of $976.1 million, or $12.59 per share.
Yearly revenue fell to $1.82 billion from $3.03 billion in 2008.
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