Centex Corp. is reporting a $172 million operating loss in home building for its fiscal first quarter ending June 30. The announcement came on Tuesday afternoon shortly after the New York Stock Exchange closed. According to the Dallas-based public builder, home building revenue for the quarter is $1.80 billion, 32 percent lower than this time last year.
In a company statement, Tim Eller, Centex Chairman and CEO, said, "In the quarter, we reduced overhead expenses and unsold inventory, and we saw an improving cancellation rate in a difficult market. We remain focused on the fundamentals: selling homes, minimizing inventory, generating cash and attacking costs."
Other highlights of the report include:
- Loss from continuing operations was $1.08 per diluted share
- Sales (orders) decreased 22 percent to 6,474
- Reduced homebuilding SG&A expenses by 20 percent, or $80 million
- Reduced inventory of unsold homes by 17 percent to 4,815
- Homebuilding cancellation rate improved 150 bps to 31.2 percent
Centex, ranked No. 4 in the 2006 BUILDER 100 will hold a teleconference Wednesday morning to address their first quarter results. BUILDER Online will continue to follow this and other quarterly reports throughout the week.
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