UPDATE 1-KB Home reports narrower quarterly loss

Published: 25 Sep 2009 04:18:47 PST

* Loss of 87 cents/shr vs. year ago loss of $1.87/shr

* Revenue down 32.8 pct

* CEO warns not to expect "meaningful improvement" soon

BOSTON, Sept 25 - Homebuilder KB Home reported a narrower quarterly loss, though its chief executive cautioned that he does not expect to see "meaningful improvement" in the U.S. housing market in the near future.

KB on Friday reported a third-quarter net loss of $66 million, or 87 cents per share, compared with a loss of $144.7 million, or $1.87 per share, a year earlier.

Revenue fell 32.8 percent.

"It will likely be some time before we see meaningful improvement in the economic conditions that are essential to our industry's future growth," said CEO Jeff Mezger.

Homebuilder shares have been on a tear over the past three months, as the industry that was one of the first to be sucked into the worst U.S. economic downturn since the Great Depression starts to show signs of stabilization.