The L.A.-based homebuilder reported a first-quarter loss of $58.1 million, but at least that was improved from the net loss of $268.2 million a year earlier. KB also showed a 26 percent increase in new home orders (it's been pushing smaller, more affordable homes that can compete with all the foreclosures on the market). "Our progress on improving our performance was evident in the first quarter," CEO Jeff Mezger said in a statement. But he warned that the housing market was still in shambles: oversupply of homes, declining prices, tight lending standards, rising unemployment and weak consumer confidence. From the WSJ:

Net new orders for the quarter outpaced the number closed on by KB Home, a promising sign. But the year-to-year increase was in part due to the cancellation rate plunging to 28% from the prior year's 53%. The company's backlog, in terms of number of homes, was down 45%.

AP also has an account.