|
LOS ANGELES (AP) - KB Home, one of the nation's largest homebuilders, said Thursday that first-quarter profit plunged as the company felt pressure from a slowing housing market and rising defaults of subprime mortgages.
KB warned it expects the sector's problems, most notably a glut of homes on the market and intense price competition, to continue at least through 2007, resulting in lower sales and profits for the year.
Still, management sounded upbeat, saying steps it has taken to reduce inventory and exposure to subprime loans will help it weather the housing downturn.
|