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CENTEX REPORTS RECORD QUARTERLY RESULTS; CITES GAINS IN HOME BUILDING AND MORTGAGE BANKING

CENTEX REPORTS RECORD QUARTERLY RESULTS; CITES GAINS IN HOME BUILDING
 AND MORTGAGE BANKING
 DALLAS, Oct. 16 /PRNewswire/ -- Centex Corporation (NYSE: CTX) today announced the highest quarterly revenues, net earnings and earnings per share in company history for the quarter ended Sept. 30, 1992, the second quarter of the company's 1993 fiscal year. The company also reported improved results for the first half of the current fiscal year. Centex, the nation's largest home builder, said record home closings with improving margins and continued strong mortgage banking earnings accounted for most of the gains and also cited more favorable results from the company's Construction Products operation.
 Corporate revenues for the second quarter this year totaled $644,799,000, 17 percent above $551,511,000 for the same quarter last year. Current quarter net earnings of $18,104,000 were 96 percent greater than $9,230,000 for the same quarter a year ago. Earnings per share of $.57 in the current quarter were 90 percent higher than $.30 per share for the same quarter last year and rose at a slightly higher pace than earnings per share due to an increase in the average number of outstanding shares in the current quarter.
 For the six months ended Sept. 30, 1992, corporate revenues totaled a record $1,203,057,000, 10 percent above $1,096,316,000 for the same period last year. Net earnings for the current period were $28,106,000, an 87 percent improvement over the same period a year ago. Earnings per share for the six month period this year were $.89 or 82 percent above $.49 reported a year earlier.
 Centex noted that quarterly and six month results for both fiscal years reflect the company's two-for-one stock split which was effected in August 1992. Centex is a Dallas-based New York Stock Exchange Company (symbol: CTX) with operations in home building and mortgage banking, contracting and construction services, construction products and savings and loan.
 Revenues from Centex's home building and mortgage banking division were a record $410.2 million for the current period, a 45 percent improvement over $283.0 million for the same quarter last year. Operating earnings from home building and mortgage banking rose 73 percent to an all-time high of $33.1 million from $19.1 million for the same quarter a year ago. Centex said its Home Building operation contributed $21.3 million or about 64 percent of the division total for the current quarter.
 Mortgage Banking contributed a record $11.8 million or approximately 36 percent of the division's total operating earnings for the current quarter, vs. $2.7 million or about 14 percent of division earnings for the same quarter a year ago.
 For the current six months, revenues from home building and mortgage banking were $725.6 million, up 34 percent from $543.2 million for the similar period last year. Operating earnings from home building and mortgage banking were $55.1 million, 67 percent higher than $32.9 million for the same period a year ago. Centex said its mortgage banking operation earned $21.0 million or approximately 38 percent of the division's total earnings for the first half of fiscal 1993, compared to $5.1 million or approximately 15 percent of division earnings for the similar period in fiscal 1992.
 Home closings for the quarter of 2,743 were up 38 percent from the prior year's 1,981 closings. New orders for the current quarter were 2,635 units, a 61 percent increase over 1,633 units for the same quarter a year ago. Orders for the six months totaled 5,332 units, a 32 percent gain over 4,053 units reported for the similar period a year earlier. Home closings for the six months were 4,882 units, 31 percent above 3,740 units for the same period last year. The backlog of homes sold but not closed at Sept. 30, 1992 totaled 4,459 units, 52 percent higher than 2,937 units at Sept. 30, 1991.
 Mortgage originations for the quarter totaled an all-time high of 10,465, 119 percent higher than 4,789 originations for the same period a year ago. Originations for Centex-built homes rose 36 percent for the quarter over the same quarter last year while third-party originations grew 158 percent in the current quarter.
 For the current six months, mortgage banking originations totaled 18,362, an 81 percent increase over 10,123 originations during the same period last year. Originations of Centex-built homes rose 29 percent, while third-party originations increased by 102 percent compared to the first six months of the prior fiscal year.
 Contracting and construction services revenues for the current quarter were $185.4 million, 16 percent less than $221.7 million for the same quarter last year. Contracting and construction services reported a $1.5 million operating loss for the current quarter vs. earnings of $1.5 million for the same quarter a year ago.
 For the current six months, revenues from contracting and construction services were $383.5 million, 17 percent less than $459.7 million for the same period last year. Contracting and construction services reported a $2.9 million operating loss for the current six months compared to earnings of $3.5 million for the similar period last year.
 The declines were due primarily to less work put in place and continuing pressure on margins. Centex said it has received approximately $568 million of new contracts during the first half of fiscal 1993, a 48 percent increase over approximately $385 million of new contracts for the same period in the prior year. The backlog of uncompleted construction contracts at Sept. 30, 1992 was approximately $975 million, 22 percent higher than the backlog of $800 million reported at Sept. 30, 1991 and 14 percent above the June 30, 1992 backlog of about $855 million.
 Construction products revenues were $44.3 million for the quarter this year, an increase of 10 percent from $40.4 million for the same quarter in the prior fiscal year. Operating earnings from construction products were $3.7 million for the current quarter, 269 percent higher than $1.0 million for the same quarter last year.
 For the six months, revenues from construction products were $83.2 million, an 8 percent improvement over $77.4 million for the same period a year ago. Operating earnings from construction products were $5.4 million, up 154 percent from $2.1 million for the similar period a year earlier.
 The improvement for both the quarter and the six months was due primarily to increased production and higher pricing at certain cement operations combined with reduced losses in the gypsum wallboard business.
 Revenues from the company's savings and loan were $4.9 million for the quarter this year, down 23 percent from $6.4 million for the same quarter in the prior fiscal year. Operating earnings from the savings and loan were $805,000 for the current quarter compared to $146,000 for the same quarter last year.
 For the six months, revenues from the savings and loan were $10.7 million compared to $16.0 million for the same period a year ago. Operating earnings from the Savings and Loan were $1.5 million vs. $251,000 in the period a year earlier.
 Centex said that the company's prospects for the balance of fiscal 1993, relative to last year, continue to improve. The home building backlog at quarter end was at a high level and the mortgage banking operation is benefiting from significant mortgage refinancing activity generated by the current low interest rate environment. This operation has expanded through the addition of mortgage branch locations and increased market penetration. The benefits of the expansion should somewhat replace any future loss of mortgage origination volume caused by reduced refinancing activity.
 In addition, Centex's construction products division is showing indications of a recovery as operational performance improves and prices in certain cement and gypsum wallboard markets begin to increase. The contracting and construction services operation, however, remains under pressure.
 Centex cautioned that despite the positive short-term prospects, a broad economic recovery will ultimately be necessary for the company to maintain its earnings momentum.
 Note attachments:
 (1) Summary of Consolidated Earnings
 (2) Revenues and Earnings by Lines of Business (Quarter)
 (3) Revenues and Earnings by Lines of Business (Six Months)
 (4) Housing Activity by Geographic Area
 Centex Corporation and Subsidiaries
 Summary of Consolidated Earnings
 (unaudited)
 (dollar amounts in thousands, except per share data)
 Quarter Ended
 September 30,
 1992 1991 Pct change
 Revenues $644,799 $551,511 17
 Operating Earnings $ 27,418 $ 13,054 110
 Net Earnings $ 18,104 $ 9,230 96
 Earnings Per Share $ 0.57 $ 0.30 90
 Average Shares
 Outstanding 31,796,925 30,929,428 3
 Six Months Ended
 September 30,
 1992 1991 Pct change
 Revenues $1,203,057 $ 1,096,316 10
 Operating Earnings $ 41,991 $ 20,696 103
 Net Earnings $ 28,106 $ 15,017 87
 Earnings Per Share $ 0.89 $ 0.49 82
 Average Shares
 Outstanding 31,731,383 31,015,298 2
 Centex Corporation and Subsidiaries
 Revenues and Earnings by Lines of Business
 (dollars in thousands)
 Quarter Ended
 September 30,
 1992 1991 Pct Change
 Revenues
 Home Building and
 Mortgage Banking $410,207 $282,966 45
 Percent 63 51
 Contracting and
 Construction
 Services 185,373 221,742 -16
 Percent 29 40
 Construction
 Products 44,275 40,368 10
 Percent 7 8
 Savings and Loan 4,944 6,435 -23
 Percent 1 1
 Total $644,799 $551,511 17
 Percent 100 100
 Operating Earnings
 Home Building and
 Mortgage Banking $ 33,096 $ 19,132 73
 Percent 92 88
 Contracting and
 Construction
 Services (1,526) 1,461 -204
 Percent -4 7
 Construction
 Products 3,657 992 269
 Percent 10 4
 Savings and Loan 805 146 451
 Percent 2 1
 Total Lines of
 Business 36,032 21,731
 Percent 100 100
 Corporate General
 Expenses (3,339) (3,127)
 Interest Expense (5,275) (5,550)
 Total $27,418 $13,054 110
 Centex Corporation and Subsidiaries
 Revenues and Earnings by Lines of Business
 (dollars in thousands)
 Six Months Ended
 September 30,
 1992 1991 Pct Change
 Revenues
 Home Building and
 Mortgage Banking $ 725,640 $ 543,218 34
 Percent 60 50
 Contracting and
 Construction
 Services 383,453 459,713 -17
 Percent 32 42
 Construction Products 83,247 77,388 8
 Percent 7 7
 Savings and Loan 10,717 15,997 -33
 Percent 1 1
 Total $1,203,057 $1,096,316 10
 Percent 100 100
 Operating Earnings
 Home Building and
 Mortgage Banking $ 55,055 $ 32,926 67
 Percent 93 85
 Contracting and
 Construction Services (2,876) 3,502 -182
 Percent -5 9
 Construction Products 5,396 2,121 154
 Percent 9 5
 Savings and Loan 1,454 251 479
 Percent 3 1
 Total Lines of
 Business 59,029 38,800 52
 Percent 100 100
 Corporate General
 Expenses (6,472) (6,388)
 Interest Expense (10,566) (11,716)
 Total $ 41,991 $ 20,696 103
 Centex Corporation and Subsidiaries
 Housing Activity by Geographic Area
 Closings
 Three Months Ended Six Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 West 382 191 654 381
 Midwest 309 231 510 379
 East 547 400 1,022 772
 Southeast 652 506 1,180 932
 Southwest 853 653 1,516 1,276
 Total 2,743 1,981 4,882 3,740
 Sales (Orders) Backlog
 9/30/92 6/30/92 9/30/91
 West 550 587 457(a)
 Midwest 548 573 349
 East 907 875 534
 Southeast 1,085 1,156 771
 Southwest 1,369 1,376 826
 Total 4,459 4,567 2,937(a)
 Sales (Orders)
 Three Months Ended Six Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 West 345 135 623 403
 Midwest 284 164 571 405
 East 579 314 1,141 794
 Southeast 581 464 1,243 1,067
 Southwest 846 556 1,754 1,384
 Total 2,635 1,633 5,332 4,053
 (a) The backlog at Sept. 30, 1991 has been restated to reflect the addition of 169 units related to Centex's November 1991 acquisition of the Mangano Company, Inc.
 -0- 10/16/92
 /CONTACT: Laurence E. Hirsch, chairman and chief executive officer, or Sheila E. Gallagher, vice president-corporate communications, 214-559-6500, both of Centex/
 (CTX) CO: Centex Corporation ST: Texas IN: CST SU: ERN


KD -- NY016 -- 0839 10/16/92 10:10 EDT
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