by Calculated Risk on 3/22/2007 09:17:00 AM

"We entered 2007 with a backlog substantially lower than the year-earlier level and consequently delivered fewer homes in the first quarter than in the same period of 2006. ... profit margins ... were constricted due to the persistent imbalance in housing supply and demand that is fueling intense competition and pricing pressure among homebuilders and other participants in the new home and resale markets. We believe these conditions will likely continue for at least the remainder of 2007, reducing our quarterly and full-year revenues and earnings compared to 2006 results."
Jeffrey Mezger, president and chief executive officer. KB Home, March 22, 2007

From KB Home Reports First Quarter 2007 Results