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KAUFMAN AND BROAD FOURTH QUARTER EARNINGS RISE FOURFOLD ON IMPROVING CALIFORNIA RESULTS

 KAUFMAN AND BROAD FOURTH QUARTER EARNINGS
 RISE FOURFOLD ON IMPROVING CALIFORNIA RESULTS
 LOS ANGELES, Jan. 9 /PRNewswire/ -- Kaufman and Broad Home Corp. (NYSE: KBH), a major home builder and commercial real estate developer, today reported sharply higher fourth quarter earnings on improved results in the company's California operations.
 For the quarter ended Nov. 30, 1991, earnings increased to $13.3 million, more than four times the $3.2 million earned in the fourth quarter of 1990. Primary earnings per share were $.40 vs. $.11 in the prior year's period. Revenues for the quarter totaled $317.8 million, down 15 percent from $375.2 million in the fourth quarter of 1990, primarily due to lower commercial revenues in France.
 For the year, Kaufman and Broad's earnings totaled $26.5 million, or $.80 per primary share, down 34 percent from $39.9 million, or $1.25 per primary share, in 1990. Revenues for the year totaled $1.22 billion, down 11 percent from $1.37 billion in 1990.
 Bruce Karatz, president and chief executive officer of Kaufman and Broad, said the company's fourth quarter earnings rose largely as a result of higher unit volume and substantially improved margins in its California housing operations. These improvements more than offset a decline in profitability from both French housing and commercial development activities. For the quarter, the company's construction gross margin increased to 21.6 percent from 16.0 percent in the fourth quarter of 1990.
 Karatz said the company's full year financial results reflected the difficult market conditions in which the company has operated throughout 1991. Overall profitability declined due to lower unit housing volume as well as a lower gross margin in both the company's residential and commercial businesses. For the year, the company's construction gross margin decreased to 17.0 percent from 20.0 percent in 1990.
 Worldwide, Kaufman and Broad delivered 4,456 new homes in 1991, down 10 percent from 4,937 in 1990. The average price of the company's new homes decreased to $178,900 from $185,400 in 1990. In California, new home deliveries increased to 3,095 units in 1991 from 3,026 in the prior year; deliveries in France declined to 1,140 units from 1,626.
 Financial results for the company's commercial development activities, all located in metropolitan Paris, also declined in 1991, with revenue and earnings contributions from the company's two largest office projects tapering off throughout the year as the projects neared completion. Commercial development contributed $354 million to consolidated revenues in 1991, down slightly from $362 million in 1990.
 In response to uncertain market conditions worldwide, the company continued to exercise tight control over operating expenses and capital expenditures. Selling, general and administrative expenses during the year were reduced $30 million or 19 percent from 1990 levels, compared to an 11 percent decline in construction revenues. Inventories at Nov. 30, 1991, totaled $654 million, down 12 percent from the year earlier level of $746 million. Construction debt declined 41 percent to $231 million from $390 million a year ago.
 A strong surge in new home orders both in California and France during the fourth quarter boosted the company's total new orders for 1991 to 4,374 units, up from 4,347 in 1990. For the year, California orders rose nearly 5 percent, to 2,950 units from 2,817 in 1990. New orders for French housing in 1991 declined 14 percent to 1,164 units from 1,356 in the previous year.
 During the fourth quarter, California new home orders rose 41 percent as first-time buyers took advantage of lower interest rates and Kaufman and Broad's new generation of affordably priced homes -- a compelling combination. New orders for French housing units rose 64 percent in the fourth quarter as the company's Bati-Service division reported the remainder of a large institutional order for employee housing.
 Despite the fourth quarter improvement in new orders, the value of Kaufman and Broad's residential backlog at Nov. 30, 1991, declined 20 percent, to $150 million from $188 million a year ago.
 Entering the first quarter of 1992, Karatz said the company continues to operate cautiously given persistent uncertainty in the economic conditions prevailing in both California and France. For all of 1992, Kaufman and Broad management anticipates a meaningful improvement in earnings over those of the past year as the company's well-situated land base, innovatively designed entry level homes and substantial capital resources allow it to gain a greater share of the California housing market.
 Los Angeles-based Kaufman and Broad Home Corp. is the largest producer of single-family housing in California and the largest builder in metropolitan Paris, where the company develops commercial office properties and a variety of residential investment properties in addition to single-family homes.
 KAUFMAN AND BROAD HOME CORP.
 Consolidated Income Statement


For the Twelve Months and Three Months Ended Nov. 30, 1991 and 1990
 (In Thousands, Except Per Share Amounts)
 Twelve Months Three Months
 1991 1990 1991 1990
 Total revenues $1,220,995 $1,366,264 $317,751 $375,164
 Construction:
 Revenues $1,176,386 $1,315,259 $306,355 $362,460
 Costs and
 expenses (1,100,349) (1,206,934) (277,319) (347,554)
 Operating income 76,037 108,325 29,036 14,906
 Interest income 3,654 6,383 1,204 880
 Interest expense (16,086) (19,250) (3,958) (4,937)
 Minority interests
 in pretax income
 of consolidated
 joint ventures (21,263) (31,343) (5,256) (8,110)
 Equity in pretax
 income (loss) of
 unconsolidated
 joint ventures (3,258) 710 (1,954) 935
 Construction
 pretax income 39,084 64,825 19,072 3,674
 Mortgage banking:
 Revenues:
 Interest income 37,327 42,962 9,151 10,110
 Other 7,282 8,043 2,245 2,594
 Total 44,609 51,005 11,396 12,704
 Expenses:
 Interest 36,679 41,857 9,073 9,827
 General and
 administrative 3,494 3,930 1,145 1,077
 Mortgage banking
 pretax income 4,436 5,218 1,178 1,800
 Total pretax income 43,520 70,043 20,250 5,474
 Income taxes (17,000) (30,100) (7,000) (2,300)
 Net income $26,520 $39,943 $13,250 $3,174
 Earnings per common
 share:
 Primary $.80 $1.25 $.40 $.11
 Fully diluted .79 1.21 .38 .11
 Average common
 shares
 outstanding:
 Primary 33,351 31,983 33,535 28,629
 Fully diluted 33,625 37,938 39,839 28,786
 -0- 1/9/92
 /CONTACT: Eileen Rose of Kaufman and Broad, 310-443-8041/
 (KBH) CO: Kaufman & Broad Home Corp. ST: California IN: CST SU: ERN


CH-EH -- LA009 -- 8059 01/09/92 08:32 EST
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