Centex 4Q Earnings Drop 49%

Dallas, TX, May 1, 2007--Homebuilder Centex reported fiscal fourth-quarter earnings that dropped 49 percent to $198.9 million, or $1.60 per share, from $391.8 million, or $3.04 per share, in the prior-year quarter.

The company reported a loss from continuing operations of $22.3 million, or $0.18 per share.

Analysts polled by Thomson Financial expected a loss of $0.03 per share.

Revenue dropped 11 percent to $3.67 billion from $4.13 billion in the fourth quarter of 2006. Analysts expected revenue of $3.34 billion.

Revenue from homebuilding fell 12 percent to $3.52 billion. The company said the revenue drop was a result of a 14 percent year-over-year decline in home closings.

In reacting to one of the most difficult markets in 25 years, we accomplished important goals that lay the groundwork for the future," said Tim Eller, chairman and CEO of Centex Corp. "We reduced costs, continued to align our land position with current demand and generated $1 billion in cash. Additionally, we profitably sold our sub-prime mortgage and commercial contracting businesses. Although we still see uncertainty in many of our markets, we are in position to increase our market share and generate additional cash."

For the year, profit fell 79 percent to $268.4 million, or $2.16 per share, from $1.29 billion, or $9.71 per share, in 2006. Revenue dipped 7 percent to $12.01 billion from $12.85 billion.