Centex Latest Home Builder To Report Huge Loss

Dallas, TX, January 29, 2008—Home builder Centex Corp. said third-quarter loss swelled as it had to take a large charge on unsold homes.

"The housing market continues to correct and tighten mortgage underwriting standards are affecting home prices," said Chief Executive Tim Eller.

Centex posted a loss of $975.2, or $7.94 per share, compared with losses of $228.1 million, or $1.90 per share, a year ago.

The latest report included a charge of $554 million, or $2.79 per share, to write down the value of homes on its books and forfeit deposits on land. Centex took a tax valuation charge of $500 million that cut earnings by $4.07.

Sales fell 30 percent to $1.91 billion from $2.73 billion last year.

The write-downs free up cash that will allow the company to buy land and build homes when market conditions improve. Centex cut the number of lots it owns or controls by 36 percent and its inventory of unsold homes by 33 percent.