Dallas-based homebuilder Centex Corp. said Thursday that it is suspending its cash stock dividend because of deteriorating economic conditions.
The company said that during the last four quarters it has paid about $20 million in dividends.
On Thursday, Centex’s stock closed at down 14 percent for the day at $10.17 – a new low for the year.
Moody’s Investors Service on Wednesday downgraded of Centex’s debt ratings.
Just Last Week Dallas-based homebuilder Centex Corp. said Wednesday that it has sold an insurance subsidiary. Centex said it sold its Westwood Insurance Agency to ZC Sterling of Atlanta for $55 million in cash and other undisclosed terms.
The transaction closed on Sept. 30. Westwood is a California-based firm which provides insurance to homebuilder customers. Under terms of the sale agreement, Westwood will continue to provide insurance services to Centex customers, the companies said.
The Westwood transaction is the latest in a series of sales by Centex which is focusing on its core building business. The big builder lost $150 million in the quarter ended June 30.
Showing posts with label centex stock. Show all posts
Showing posts with label centex stock. Show all posts
Friday, October 10, 2008
Monday, May 5, 2008
Centex Posts Huge Losses - Decline in US Home Prices to Blame
Centex saw a quarterly loss of $910.5 million, or $7.36 a share, compared to net income of $198.9 million, or $1.65 a share, a year ago. The loss from continuing operations for the fourth quarter was $7.34 a share. Revenue slid to $2.31 billion from $3.64 billion in the year-ago period.
Analysts polled by FactSet Research had expected a loss of $2.14 a share on revenue of $2.09 billion. Home closings during the period decreased 33% to 7,100 homes and average sales price slid 15% to $267,953.
Centex management is scheduled to hold a conference call Thursday morning to discuss its fiscal fourth-quarter results. Analysts will be looking for any color on how the key spring sales season is progressing.
More bad news came out of the housing market this week.
The decline in U.S. home prices quickened in February, with prices down a record 12.7% in the past year for 20 key cities, according to the Case-Shiller home price index released Tuesday by Standard & Poor's.
"We continue to believe it is too soon to say the potential for future price declines has abated," said Soleil Securities Group analysts in response to the report.
"The spring selling season is once again likely to be a bust as deteriorating economic conditions and fear of declining prices keep would-be buyers on the sidelines," wrote Morningstar Inc. analyst Eric Landry in an investor note this week.
Shares of Centex and the builder sector traded lower Wednesday after the Federal Reserve cut the key lending rate by a quarter-point. "Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters," the Federal Open Market Committee said in its statement. See The Fed.
The government continues to mull ways to help pressured homeowners and the tattered mortgage market.
Members of the House Financial Services Committee went back to work Wednesday on a multibillion-dollar housing-aid bill that is intended to help stem the foreclosure crisis. The bill would allow the Federal Housing Administration to back as much as $300 billion in refinanced loans for homeowners who are facing foreclosure. Financial Services Committee Chairman Rep. Barney Frank, D-Mass., said he expects a vote on the bill Thursday. Is now the time to buy Centex Stock?
Analysts polled by FactSet Research had expected a loss of $2.14 a share on revenue of $2.09 billion. Home closings during the period decreased 33% to 7,100 homes and average sales price slid 15% to $267,953.
Centex management is scheduled to hold a conference call Thursday morning to discuss its fiscal fourth-quarter results. Analysts will be looking for any color on how the key spring sales season is progressing.
More bad news came out of the housing market this week.
The decline in U.S. home prices quickened in February, with prices down a record 12.7% in the past year for 20 key cities, according to the Case-Shiller home price index released Tuesday by Standard & Poor's.
"We continue to believe it is too soon to say the potential for future price declines has abated," said Soleil Securities Group analysts in response to the report.
"The spring selling season is once again likely to be a bust as deteriorating economic conditions and fear of declining prices keep would-be buyers on the sidelines," wrote Morningstar Inc. analyst Eric Landry in an investor note this week.
Shares of Centex and the builder sector traded lower Wednesday after the Federal Reserve cut the key lending rate by a quarter-point. "Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters," the Federal Open Market Committee said in its statement. See The Fed.
The government continues to mull ways to help pressured homeowners and the tattered mortgage market.
Members of the House Financial Services Committee went back to work Wednesday on a multibillion-dollar housing-aid bill that is intended to help stem the foreclosure crisis. The bill would allow the Federal Housing Administration to back as much as $300 billion in refinanced loans for homeowners who are facing foreclosure. Financial Services Committee Chairman Rep. Barney Frank, D-Mass., said he expects a vote on the bill Thursday. Is now the time to buy Centex Stock?
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