Centex swings to 3Q loss |
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Tue, 23 Jan 2007 23:21
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DALLAS (AFX) - Centex Corp., one of the nation's largest homebuilders, said Tuesday it swung to a loss in its fiscal third-quarter on charges to write down the value of assets and forfeit deposits on land options.Centex reported a loss of $228.1 million, or $1.90 per share, in the quarter ended Dec. 31. The loss included write-offs of $138 million for option deposits and $297 million for asset impairments. The loss from continuing operations came in at $1.96 per share.Centex joined many of its peers in writing down assets, an admission that it cannot develop and sell those holdings at a profit. The move scrubs the balance sheet, causing a near-term hit, but ostensibly better positions the company for when market conditions improve.Last week, the company warned investors it would post a loss of $2 per share because of the anticipated charges. Analysts, who had been looking for a profit, adjusted their estimates accordingly, leaving the average Wall Street forecast in line with the company forecast.Revenue fell 7 percent to $3.28 billion, as home closings dropped 12 percent to 8,360 units. Homebuilding revenue fell 14 percent to $2.59 billion.Backlog shrank by 32 percent as orders declined 24 percent.Centex shares lost 33 cents to $53.77 in after-hours trading.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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