Increased Sales Boost Kaufman & Broad Profit

Kaufman & Broad Corp., the largest U.S. home builder, said Thursday that its fiscal fourth-quarter earnings rose 54%, beating estimates, on increased homes sales and lower expenses.

Los Angeles-based Kaufman & Broad said net income rose to $64.5 million, or $1.36 a share for the period ended Nov. 30, from $41.8 million, or $1.02 a share, in the year-earlier period. Revenue rose 48% to $1.22 billion from $826.6 million.

The company was expected to earn $1.29, based on the average estimate of analysts polled by First Call/Thomson Financial.

Kaufman & Broad said an increase in sales and a reduction in its selling, general and administrative costs boosted profit. Construction income and earnings from mortgage banking also rose.

Kaufman & Broad rose $1.19 to close at $24.13 on the New York Stock Exchange.

Other earnings, excluding one-time gains and charges unless noted:

* San Marino-based East West Bancorp, the parent of community lender East West Bank, reported record fourth-quarter net income for the period ended Dec. 31 of $7.9 million, or 35 cents a share, compared with $6.5 million, or 27 cents, a year ago. Net interest income rose 22% to $19.7 million from $16.1 million.

For the full year, East West net income was $28 million, or $1.22 a share, compared with $18 million, or 76 cents, the previous year. Interest income rose to $72 million from $55.6 million.

East West also said it was buying Los Angeles-based American International Bank for about $30 million. American, with eight branches and $200 million in assets, will give East West its first presence in the San Fernando Valley and downtown Los Angeles, East West Chief Executive Dominic Ng said.

East West shares rose $1.69 to close at $12.19 on Nasdaq.