KB Home stung by weak home orders and charges (AP)

LOS ANGELES – House shares fell more than 15 KB per cent on Wednesday, after the homebuilder reported its second-quarter loss more than doubled among mediocre sales and higher costs, and the company reported examined by tapping the capital markets to raise money.

The company said it might consider the sale of stocks, bonds or obtain a credit line because it anticipates having to pay 100 million dollars to cover a maturity bond later this year in addition to more than 200 million dollars, the manufacturer agreed to pay to settle a dispute by joint venture.

Management pointed out that the company has enough money, at this point and still has some time to evaluate its options.

This guarantee did little to offset the results as investors scale House KB of worse than expected. Shares ended the regular session down $1,84 to $ 10.08 and slipped another penny in aftermarket trading.

New home of the marching orders for KB to the period from may, coinciding with the spring home selling season, fell to 11 percent from a year earlier, when federal tax incentives helped boost sales. Home deliveries, a vital source of income, fell on 29 percent.

President and CEO Jeffrey Mezger said that a change of housing remains hampered by consumer concerns about jobs and the American economy.

"Many of the recent national reports on the housing activities reflect today's soft case environment and demonstrate that we have a way forward on the road to a housing recovery," said Mezger.

Sales of new homes in the United States fell 2.1 percent in the month of May to a seasonally adjusted annual rate of 319.000 homes. New home sales had risen two months earlier, but remain well below the 700,000 a month economists consider healthy.

And consumer confidence hit a minimum of seven months, this month on continuing concerns over high unemployment and stagnant wages.

Trends in sales for the quarter of those of other great KB homebuilders echo this year. Many have seen a seasonal bump in traffic of the customer this spring, the traditional peak period for sales of homes, but the intensified interest in strong sales do not translate.

A factor is the first time buyers haven't been showing up as they did last year, when the tax credits were in effect. This market segment represents more than half of KB customers.

First time buyers also tend to have a harder time for home loans, amid tight lending standards of qualification. And many of those who receive funding have chosen to buy cheaper, resale homes.

"This is a big negative, not only for KB, but a big negative for the industry," said Gjokaj Demir, a senior analyst of ITG Investment Research in New York. "It shows us that, without doubt, the first time homebuyer is back."

Buyers who decide to buy a House often are taking months, not days or weeks, to take the plunge.

"They are exploring all options and are nervous," said Mezger.

Still, some markets, including parts of coastal California and Texas, are showing signs of stability, with house prices remain flat or even increasing, Mezger said.

Assuming that these markets and others remain stable, KB expects that it will be profitable in the fourth quarter.

KB Home headquarters in Los Angeles, said it lost $ 68.5 million, or 89 cents per share, in the three months that ended on 31 May. That compares with a loss of $ 30.7 million, or 40 cents per share, in the same period last year.

The results include $ 20.6 million in expenses to inventory impairments and land contract installategli and a loss of $ 14.5 million on a loan guarantee related to southern Edge LLC, a joint venture in Las Vegas. Earlier this month, the manufacturer has reached a settlement deal with JPMorgan Chase & Co. and several other large banks that made loans to the company.

Quarterly turnover slumped 27 percent KB, 271.7 million from $ 374.1 million the year before.

Analysts polled by FactSet were expecting a loss of 31 cents per share on approximately 291.4 million dollars in revenue.

KB Home builds homes in 12 States and was ranked the fifth homebuilder in the nation last year, according to closures.

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