Industry News

Centex reports $644 million Q2 net loss

Company cites 'serious disruptions' in mortgage, credit markets

Home builder Centex Corp. on Tuesday reported that "serious disruptions" in the mortgage and credit markets contributed to a net loss of $643.8 million in the second quarter ended Sept. 30, compared with net earnings of $137.4 million in second-quarter 2006. The net loss for the quarter amounted to $5.26 per diluted share. "Market conditions were extremely challenging during the quarter, reflecting the serious disruptions in the credit and mortgage markets that occurred during that period," said Tim Eller, Centex chairman and CEO, in a statement. "In response, we meaningfully reduced prices in order to improve affordability for our home buyers." The company reported second-quarter home-building revenues of $2.11 billion, down 21 percent compared to the same quarter last year. That is due in part to a 14 percent decline in closings. The company also reported an 8 percent decrease in the unit average sales price and a 13 percent decline in orders compared to second-quarter 20...