KB Home on October 12 announced that Domenico Cecere, executive vice president and chief financial officer, will be retiring from the company effective May 2008. The company said it was beginning a search for his successor, during which Cecere will continue to serve as CFO.
"Dom's contributions to our success at KB Home are evident in our financial discipline and rigor and the tremendous progress we have made in strengthening our financial position," said Jeffrey Mezger, president and CEO.
Cecere, 58, has served as KB's CFO for the past five years. He joined the company after serving as a financial and operations executive at Honeywell and Owens-Corning. In a prepared statement issued by KB, Cecere was quoted as saying, "While there is never a perfect time to leave, KB Home has one of the strongest balance sheets among our peers, and our strategies are fully in place so I can make this change now and remain confident in the company's future."
In a research note to investors, Carl Reichardt, home building analyst at Wachovia Securities, said, "We believe this is merely a personal transition for Dom and not a reflection of any institutional concern." Reichardt credited Cecere with "significant responsibility for re-focusing KBH on expense reduction even prior to the industry's downturn, the importance of asset turnover and consistent cash flow, and an enhanced shareholder relations effort." He added, "While Dom's retirement is a surprise to us, and even a disappointment, we believe KBH will manage the transition well."