KB Home Charges Off $343M

One of Northeast Florida's largest home builders will take a nearly $350 million charge against fourth-quarter earnings.

Los Angeles-based KB Home said the value of its housing stock dropped $255 million. In addition, the company will record $88 million in penalties as the result of canceling land purchases.

In the Jacksonville area, the company built 800 homes during 2005 for a total value of $170 million, making it the fifth-largest home builder in the area.

The non-cash charges will affect earnings for the company's fiscal quarter ended Nov. 30.

The charge-offs come as the U.S. housing marking continues to slip. KB Home (NYSE: KBH) reports that home sales were down 4.1 percent for the three-month period ending Aug. 31.

Source: Jacksonville Business Journal