Centex swings to loss in first quarter
Centex swung to a loss in the first quarter on drooping home sales and lower revenue from financial services.
Losses for the first quarter were $195.66 million, down from earnings of $278.46 million in last year’s first quarter.
Net revenue, including home-building sales and revenue from Centex’s financial services business fell 31 percent to $1.94 billion, compared with $2.65 billion last year.
Home-building sales were $1.8 billion, down 32 percent from the same quarter last year. Home closings were down 27 percent to 6,095 total homes.
Revenue from financial services was down 35 percent to $15 million. Centex’s CTX Mortgage group originated loans for 78 percent of Centex home buyers during the first quarter.
“In the quarter, we reduced overhead expenses and unsold inventory,” said Tim Eller, Centex chairman and CEO. “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."
Dallas-based Centex, founded in 1950, builds homes in 25 states.