Centex Narrows Loss on Fewer Charges

Dallas, TX, Oct. 29, 2008--Centex Corp. reported a fiscal second-quarter loss of $172 million, vs. a net loss of $644 million in the year-earlier period.

The loss from continuing operations for the second quarter was $202 million, or $1.62 a share, less than last year's second quarter loss of $645 million, or $5.27 a share, the company said.

The loss from continuing operations included $103 million of impairments and other land-related charges. That was down from $983 million of impairments and other land-related charges in last year's second quarter.

The builder said its sales backlog stood at 6,953 units at the end of September, down 28% from a year earlier.

Centex is the latest home builder to announce dismal quarterly results as consumer confidence continues to weaken on fears of recession and job losses.

"The home-building industry continues to grapple with unprecedented economic conditions," Tim Eller, chief executive of Centex, said in a press release.

"We improved our gross margins and generated positive cash from operations despite the extreme weakness in the housing market."

"We continue to believe months of supply needs to decline significantly before markets can stabilize and anticipate that months of supply could rise again in the coming months if builders do not remain aggressive in responding to shifting market conditions," Anna Torma at Soleil Securities Group wrote in a research note this week.