Dallas, TX, January 24, 2007--Centex reported a third quarter loss of $235.4 million, or $1.96 a share. In the year-ago quarter, Centex delivered earnings of $313.2 million, or $2.37 a share.
The company said total revenue was $3.28 billion versus $3.53 billion a year earlier. Analysts surveyed by Thomson First Call had been forecasting, on average, a quarterly loss of $2 a share on revenue of $3.12 billion.
Home building reported a quarterly operating loss of $292 million, after the write-off of $138 million of option deposits and land pre-acquisition costs, and $297 million of land valuation adjustments, including $97 million from joint ventures.
The company also recorded a $52.9 million income tax benefit. In the prior year's quarter, Centex recorded a $186.8 million income tax charge.
For the fiscal 2007, Centex now sees earnings of 25 a share. That view includes $3.50 per share of land inventory adjustments and option walk-away costs, as well as a 50-cent per share increase in the company's tax reserve.
For the fourth quarter, the company expects breakeven, a result that includes option walk-away costs of 65 cents per share.
Earlier this month, Centex warned it anticipated reporting a loss of about $2 a share on land charges and lower orders. At the time, the company said it was facing "one of the most challenging housing environments in the past 25 years." It said net sales orders fell 24% from a year earlier to 6,139 homes.
Centex had expected to take quarterly charges of $150 million related to options on land it planned not to exercise. It also planned book land-valuation adjustments of about $300 million.
