Centex 8-K Centex Reports Record Third Quarter Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

For additional information, contact at (214) 981-5000:
Leldon E. Echols, Executive Vice President and Chief Financial Officer
Matthew G. Moyer, Vice President—Investor Relations
http://www.centex.com

CENTEX REPORTS RECORD THIRD QUARTER RESULTS

Earnings per diluted share from continuing operations increase 38% to $2.52
Fiscal Year 2007 earnings from continuing operations guidance confirmed in the range
of $10.75 to $11.25 per diluted share

DALLAS- January 24, 2006: Centex Corporation(NYSE: CTX)today announced record third quarter revenues, operating earnings and diluted earnings per share.

Highlights of the quarter ended December 31, 2005 (compared to last year’s third quarter):

• Revenues increased 25% to $3.74 billion

• Net earnings grew 30% to $329 million

• Home Building operating margin was 16.8%, up 130 basis points

• Home Building unit backlog rose 13%, dollar value grew 22%

• Home closings increased 18%, new orders rose 4%

     “We achieved strong results in our fiscal third quarter, posting solid revenue and earnings growth with improved operating margins,” said Tim Eller, Chairman and CEO of Centex Corporation. “We expect to achieve record results in the fourth quarter of fiscal 2006 and in the coming fiscal year. The long-term fundamentals driving the industry remain strong, and we continue to see opportunities to gain market share in a more normalized housing environment. Our sharpened focus on home building, our diverse geographic and product mix, and our leadership in customer satisfaction provide a solid foundation for continued growth and improvement.”

HOME BUILDING

     Fiscal 2006’s third quarter revenues from Centex Homes were $3.00 billion, 34% higher than the same quarter last year. Operating earnings from Centex Homes were $505 million for the quarter, 45% higher than the same quarter a year ago.

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CENTEX REPORTS RECORD THIRD QUARTER RESULTS, Page 2 of 3

     This 45% increase in operating earnings was achieved on an 18% increase in closings to 9,504 homes and a 130-basis-point improvement in operating margin to 16.8%. The operating margin improved primarily due to an increase in the average sales price of delivered homes, SG&A leverage and continuing process improvements.

     For the nine months, revenues from Centex Homes were $8.29 billion, 32% higher than the same period in fiscal 2005. Operating earnings from Centex Homes were $1.30 billion for the nine-month period this year, 53% higher than the year-ago period.

OTHER BUSINESSES

CTX Mortgage

     Operating earnings from CTX Mortgage totaled $21 million for this year’s third quarter, flat compared to the same quarter a year ago. Total originations increased 7%, driven by a 21% increase in originations from Centex’s home building operations. CTX Mortgage provided loans to 75% of Centex Homes’ buyers during the third quarter.

Centex Home Equity Company

     Centex Home Equity Company (CHEC) reported operating earnings of $34 million for the third quarter of fiscal 2006, a 37% improvement over last year’s third quarter. The increased earnings were driven by the growth in the loan portfolio and an increase in whole loan sales. CHEC’s loan servicing portfolio, on which it earns an interest margin, reached $8.76 billion, growing 13% over last year.

Construction Services

     Operating earnings from Construction Services were $6 million for the third quarter this year, resulting in an operating margin of 1.6%, up 16 basis points from last year’s third quarter. New contracts for the quarter were approximately $555 million, increasing the backlog of uncompleted construction contracts at December 31, 2005 to $2.95 billion, 47% more than a year ago.

ADDITIONAL DEVELOPMENTS

     Over the past four months, Centex has repurchased approximately 5% of its outstanding shares. Centex repurchased 5,000,000 shares in the third fiscal quarter at an average price of $71.10 per share. Additionally, in January the company completed its previously announced repurchase plan for another 1,500,000 shares at an average price of $75.03. The company has 3,500,000 shares remaining in its current repurchase authorization.

     As previously announced, Centex has been exploring strategic alternatives for CHEC, including a possible sale. Centex has received expressions of interest concerning the possible sale of CHEC and is currently in discussions with one or more bidders that may or may not lead to a sale. If Centex consummates a sale of CHEC, the Board of Directors will determine the use of net proceeds, which may include investment in home building operations and additional share repurchases.

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CENTEX REPORTS RECORD THIRD QUARTER RESULTS, Page 3 of 3

OUTLOOK

     Based on its strong operating performance in the third quarter and the strength of the backlog, the company is confirming its guidance for fiscal 2006 earnings from continuing operations to a range of $9.65 to $9.85 per diluted share, which would represent earnings per share growth of 32% to 35% over last fiscal year. Additionally, the company is confirming its fiscal 2007 earnings per diluted share guidance of $10.75 to $11.25, which is based upon the estimated delivery of 43,000 to 44,000 homes.

     Centex’s senior management will conduct a conference call to discuss the third quarter fiscal year 2006 financial results at 10 a.m. Eastern Time (9 a.m. Central Time) on Wednesday, January 25. The conference call, accompanied by a slide presentation, will be webcast simultaneously on the Centex Web site athttp://www.centex.com. A replay of the call, as well as the presentation, will be archived on that site.

# # #

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Centex is discussing its beliefs, estimates or expectations. Such statements include projections, forecasts, and plans and objectives of management for future operations and operating and financial performance, as well as any related assumptions. These statements are not historical facts or guarantees of future performance but instead represent only Centex’s belief at the time the statements were made regarding future events, which are subject to significant risks, uncertainties and other factors, many of which are outside of Centex’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. These risks and uncertainties are described in greater detail in Centex’s most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2005 (including under the captions “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), as well as recent Quarterly Reports on Form 10-Q, which are on file with the SEC and may be obtained free of charge through the Web site maintained by the SEC at http://www.sec.gov. The factors discussed in these reports include, but are not limited to, changes in national or regional economic or business conditions, including employment levels and interest rates, competition, shortages or price changes in raw materials or labor, and other factors that could affect demand for our homes, mortgage loans or construction services or the profitability of our operations. With respect to a possible sale of CHEC, although Centex is currently in discussions with one or more bidders, there can be no assurance that an agreement will be reached or a sale of CHEC will be completed, or if completed, as to the nature of the buyer or the terms or timing of the transaction. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. Centex makes no commitment, and disclaims any duty, to update or revise any forward-looking statement to reflect future events or changes in Centex’s expectations.

NOTE ATTACHMENTS:
(1) Revenues and Earnings by Lines of Business
(2) Condensed Consolidated Balance Sheets
(3) Condensed Consolidated Cash Flows
(4) Supplemental Home Building Data
(5) Housing Activity by Geographic Area
(6) Housing Activity Dollar Values by Geographic Area
(7) Supplemental Financial Services Data
(8) Supplemental Financial Data

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Attachment 1

Centex Corporation and Subsidiaries
Revenues and Earnings by Lines of Business
(Dollars in thousands, except per share data)

	Quarter Ended									Nine Months Ended
	December 31,									December 31,
	(unaudited)									(unaudited)
	2005			2004(B)			Change			2005			2004(B)			Change
Revenues
Home Building (A)	$	3,003,650		$	2,239,451			34	%	$	8,291,236		$	6,270,124			32	%
Financial Services		326,077			266,701			22	%		956,145			817,945			17	%
Construction Services		402,927			445,468			(10	%)		1,160,904			1,331,913			(13	%)
Other		5,713			38,075			(85	%)		53,570			121,792			(56	%)
Total	$	3,738,367		$	2,989,695			25	%	$	10,461,855		$	8,541,774			22	%
Operating Earnings
Home Building (A)	$	504,923		$	347,175			45	%	$	1,304,463		$	853,929			53	%
Financial Services		53,949			46,003			17	%		155,410			156,829			(1	%)
Construction Services		6,466			6,398			1	%		13,192			16,378			(19	%)
Other		(2,558	)		6,338			(140	%)		(8,206	)		11,378			(172	%)
Total Operating Earnings		562,780			405,914			39	%		1,464,859			1,038,514			41	%
Corporate General Expenses		(26,775	)		(23,137	)					(70,935	)		(61,741	)
Interest Expense		(3,009	)		(4,961	)					(8,705	)		(14,078	)
Earnings from Continuing Operations Before Income Taxes		532,996			377,816			41	%		1,385,219			962,695			44	%
Income Taxes		(200,247	)		(135,858	)					(490,498	)		(345,531	)
Earnings from Continuing Operations		332,749			241,958			38	%		894,721			617,164			45	%
Earnings (Loss) from Discontinued Operations, net (A)		(3,405	)		11,813						2,823			24,452
Net Earnings	$	329,344		$	253,771			30	%	$	897,544		$	641,616			40	%
Earnings Per Share — Basic
Earnings per Share — Continuing Operations	$	2.63		$	1.93			36	%	$	7.00		$	4.96			41	%
Earnings (Loss) per Share — Discontinued Operations		(0.03	)		0.09						0.02			0.20
Earnings Per Share — Basic	$	2.60		$	2.02			29	%	$	7.02		$	5.16			36	%
Earnings Per Share — Diluted
Earnings per Share — Continuing Operations	$	2.52		$	1.82			38	%	$	6.68		$	4.69			42	%
Earnings (Loss) per Share — Discontinued Operations		(0.03	)		0.09						0.02			0.18
Earnings Per Share — Diluted	$	2.49		$	1.91			30	%	$	6.70		$	4.87			38	%
Average Shares Outstanding:
Basic		126,572,663			125,593,379			1	%		127,933,898			124,404,141			3	%
Diluted		132,077,763			132,547,190			—	%		133,954,277			131,702,753			2	%

(A)	Home Building excludes the United Kingdom Home Building operations which was sold in September, 2005 and is reflected in discontinued operations.
(B)	Certain prior year items have been reclassified to conform to current period classifications.

Attachment 2

Centex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions)
(unaudited)

	Centex Corporation and Subsidiaries				Centex Corporation*				Financial Services
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
	2005		2005		2005		2005		2005		2005
Assets
Cash —
Unrestricted	$	79	$	503	$	66	$	491	$	13	$	12
Restricted		469		378		75		53		394		325
Receivables —
Residential Mortgage Loans Held for Investment		8,759		7,914		—		—		8,759		7,914
Residential Mortgage Loans Held for Sale		1,728		1,775		—		—		1,728		1,775
Other Receivables		743		792		540		594		203		198
Inventories —
Homebuilding		8,673		6,439		8,673		6,439		—		—
Land Held Under Option Agreements not Owned		553		457		553		457		—		—
Other		10		33		5		27		5		6
Investments		344		164		1,045		736		—		—
Property and Equipment, net		162		160		120		117		42		43
Goodwill		218		217		207		205		11		12
Deferred Charges and Other Assets		686		502		398		333		288		169
Assets of Discontinued Operations		—		677		—		677		—		—
	$	22,424	$	20,011	$	11,682	$	10,129	$	11,443	$	10,454
Liabilities and Stockholders’ Equity
Accounts Payable and Accrued Liabilities	$	2,445	$	2,109	$	2,288	$	1,950	$	177	$	114
Debt
Non-Financial Services		4,107		3,108		4,107		3,108		—		—
Financial Services		10,583		9,721		—		—		10,583		9,721
Liabilities of Discontinued Operations		—		334		—		334		—		—
Minority Interests		539		458		537		456		2		2
Stockholders’ Equity		4,750		4,281		4,750		4,281		681		617
	$	22,424	$	20,011	$	11,682	$	10,129	$	11,443	$	10,454

* In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries balance sheets. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning.

Attachment 3

Centex Corporation and Subsidiaries
Condensed Consolidated Cash Flows
(Dollars in millions)
(unaudited)

	Centex Corporation and Subsidiaries						Centex Corporation*						Financial Services
	For the Nine Months Ended December 31,						For the Nine Months Ended December 31,						For the Nine Months Ended December 31,
	2005			2004			2005			2004			2005			2004
Cash Flows — Operating Activities
Net Earnings	$	898		$	642		$	898		$	642		$	89		$	98
Adjustments —
Depreciation and Amortization		49			43			36			30			13			13
Other Noncash Adjustments		(33	)		166			(27	)		27			(70	)		80
Decrease in Loans Held for Sale		48			234			—			—			48			234
(Increase) Decrease in Inventories		(2,255	)		(1,776	)		(2,256	)		(1,779	)		1			3
Other Operating Activities		224			(65	)		283			147			6			(230	)
		(1,069	)		(756	)		(1,066	)		(933	)		87			198
Cash Flows — Investing Activities
Increase in Loans Held for Investment		(912	)		(1,297	)		—			—			(912	)		(1,297	)
Other Investing Activities		124			(63	)		71			(37	)		(12	)		(8	)
		(788	)		(1,360	)		71			(37	)		(924	)		(1,305	)
Cash Flows — Financing Activities
Increase in Short-Term Debt, net		1,782			1,501			389			122			1,393			1,379
Issuance of Long-Term Debt, net		114			443			645			681			(531	)		(238	)
Other Financing Activities		(461	)		42			(461	)		42			(25	)		(39	)
		1,435			1,986			573			845			837			1,102
Effect of Exchange Rate on Cash		(2	)		1			(2	)		1			—			—
Net Decrease in Cash and Cash Equivalents		(424	)		(129	)		(424	)		(124	)		—			(5	)
Cash and Cash Equivalents at Beginning of Period		503			179			490			161			13			18
Cash and Cash Equivalents at End of Period	$	79		$	50		$	66		$	37		$	13		$	13

* In the supplemental data presented above, “Centex Corporation” represents the consolidation of all subsidiaries other than those included in Financial Services. Transactions between Centex Corporation and Financial Services have been eliminated from the Centex Corporation and Subsidiaries cash flows. We believe that separate disclosure of the consolidating information is useful because: the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand-alone basis; and Centex Corporation has limited obligations with respect to the indebtedness of its Financial Services subsidiaries. Management uses this information in its financial and strategic planning.

Attachment 4

Centex Corporation and Subsidiaries
Supplemental Home Building Data
(Dollars in thousands, except per unit data)
(unaudited)

	Quarter Ended December 31,										Nine Months Ended December 31,
	2005					2004					2005					2004
HOME BUILDING
Revenues — Housing	$	2,956,351		100.0	%	$	2,172,463		100.0	%	$	8,030,378		100.0	%	$	6,097,874		100.0	%
Cost of Sales — Housing		(2,080,742	)	(70.4	%)		(1,554,807	)	(71.6	%)		(5,676,908	)	(70.7	%)		(4,407,870	)	(72.3	%)
Gross Margin — Housing		875,609		29.6	%		617,656		28.4	%		2,353,470		29.3	%		1,690,004		27.7	%
Revenues — Land Sales & Other		47,299					66,988					260,858					172,250
Cost of Sales — Land Sales & Other		(45,560	)				(54,362	)				(196,115	)				(154,088	)
Gross Margin — Land Sales & Other		1,739					12,626					64,743					18,162
Total Gross Margin		877,348		29.2	%		630,282		28.1	%		2,418,213		29.2	%		1,708,166		27.2	%
Selling, General & Administrative		(421,327	)	(14.0	%)		(326,551	)	(14.6	%)		(1,181,024	)	(14.2	%)		(908,743	)	(14.5	%)
Other Income		48,902		1.6	%		43,444		2.0	%		67,274		0.7	%		54,506		0.9	%
Operating Earnings	$	504,923		16.8	%	$	347,175		15.5	%	$	1,304,463		15.7	%	$	853,929		13.6	%
Units Closed		9,504					8,047					26,896					23,261
Average Unit Sales Price	$	311,064				$	269,972				$	298,571				$	262,150
% Change		15.2	%				10.0	%				13.9	%				8.7	%
Operating Earnings per Unit	$	53,127				$	43,143				$	48,500				$	36,711
% Change		23.1	%				28.8	%				32.1	%				24.2	%
Average Neighborhoods		635					598					618					581
% Change		6.2	%				6.8	%				6.4	%				4.1	%

LOT POSITION

	As of December 31,
	2005		2004		Change
Lot Owned and Controlled:
Lots Owned		106,595		93,919		13	%
Lots Controlled		187,126		164,002		14	%
Total		293,721		257,921		14	%

Attachment 5

Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Units) by Geographic Area

	Closings
	Quarter Ended December 31,							Nine Months Ended December 31,
	2005		2004		Change			2005		2004		Change
Mid-Atlantic		1,809		1,364		33	%		5,103		3,984		28	%
Southeast		1,639		1,282		28	%		4,725		3,887		22	%
Midwest		1,667		1,683		(1	%)		4,994		4,891		2	%
Southwest		2,760		2,234		24	%		7,366		6,342		16	%
West Coast		1,629		1,484		10	%		4,708		4,157		13	%
		9,504		8,047		18	%		26,896		23,261		16	%

	Sales (Orders) Backlog
	As of December 31,
	2005		2004		Change
Mid-Atlantic		3,367		3,417		(1	%)
Southeast		5,156		4,992		3	%
Midwest		3,074		2,966		4	%
Southwest		4,683		3,141		49	%
West Coast		3,515		2,985		18	%
		19,795		17,501		13	%

	Sales (Orders)
	Quarter Ended December 31,							Nine Months Ended December 31,
	2005		2004		Change			2005		2004		Change
Mid-Atlantic		1,341		1,465		(8	%)		5,048		4,600		10	%
Southeast		1,350		1,582		(15	%)		4,875		5,172		(6	%)
Midwest		1,369		1,411		(3	%)		4,756		4,465		7	%
Southwest		2,581		2,016		28	%		8,361		6,614		26	%
West Coast		1,487		1,347		10	%		5,062		4,497		13	%
		8,128		7,821		4	%		28,102		25,348		11	%

Attachment 6

Centex Corporation and Subsidiaries
Supplemental Home Building Data
Housing Activity (Values) by Geographic Area

	Housing Revenues - Closings
	(Dollars in thousands)
	Quarter Ended December 31,							Nine Months Ended December 31,
	2005		2004		Change			2005		2004		Change
Mid-Atlantic	$	634,095	$	392,378		62	%	$	1,713,464	$	1,136,601		51	%
Southeast		476,911		336,135		42	%		1,336,313		973,718		37	%
Midwest		377,374		357,025		6	%		1,097,740		1,034,362		6	%
Southwest		544,375		378,903		44	%		1,371,185		1,044,066		31	%
West Coast		923,596		708,022		30	%		2,511,676		1,909,127		32	%
	$	2,956,351	$	2,172,463		36	%	$	8,030,378	$	6,097,874		32	%

	Sales (Orders) Backlog Value
	(Dollars in thousands)
	As of December 31,
	2005		2004		Change
Mid-Atlantic	$	1,236,973	$	1,132,941		9	%
Southeast		1,659,752		1,472,021		13	%
Midwest		711,139		679,400		5	%
Southwest		1,146,650		671,553		71	%
West Coast		1,997,713		1,578,250		27	%
	$	6,752,227	$	5,534,165		22	%

Attachment 7

Centex Corporation and Subsidiaries
Supplemental Financial Services Data

CTX Mortgage Company

	Quarter Ended December 31,							Nine Months Ended December 31,
	2005		2004		Change			2005		2004		Change
Originations
Builder		6,616		5,463		21	%		18,480		15,688		18	%
Retail		9,813		9,897		(1	%)		35,028		35,400		(1	%)
Total		16,429		15,360		7	%		53,508		51,088		5	%
Applications
Builder		5,908		5,463		8	%		20,372		17,330		18	%
Retail		7,728		8,603		(10	%)		29,975		29,427		2	%
Total		13,636		14,066		(3	%)		50,347		46,757		8	%
Loan Volume (in billions)	$	3.74	$	3.06		22	%	$	11.84	$	9.66		23	%
Average Loan Size	$	227,500	$	199,500		14	%	$	221,200	$	189,000		17	%
Operating Profit per Loan	$	1,278	$	1,365		(6	%)	$	1,177	$	1,463		(20	%)

Centex Home Equity Company

	Quarter Ended December 31,									Nine Months Ended December 31,
	2005			2004			Change			2005			2004			Change
Originations		12,793			11,293			13	%		36,433			33,632			8	%
Applications		112,976			100,509			12	%		329,173			297,807			11	%
Loan Volume (in billions)	$	1.75		$	1.37			28	%	$	4.79		$	4.07			18	%
Average Loan Size	$	137,100		$	121,100			13	%	$	131,500		$	120,900			9	%
Earnings As a % of Average Portfolio Accounting Method Loans		1.59	%		1.34	%					1.54	%		1.54	%

Servicing Portfolio:

	As of December 31,
	2005		2004		Change
Number of Loans:
Portfolio Accounting Method		86,780		82,628
Serviced for Others		19,357		14,794
Total		106,137		97,422		9	%
Servicing Portfolio (in billions):
Portfolio Accounting Method	$	8.76	$	7.72
Serviced for Others		1.92		1.16
Total	$	10.68	$	8.88		20	%

Attachment 8

Centex Corporation and Subsidiaries
Supplemental Financial Data — Debt-to-Capitalization Ratio
(Dollars in millions)

	As of December 31,			As of March 31,			As of December 31,
	2005			2005			2004
Debt/Capitalization *
Debt	$	4,107		$	3,108		$	3,052
Minority Interests		537			456			472
Less Minority Interests on Lot Options		(497	)		(416	)		(430	)
Stockholders’ Equity		4,750			4,281			3,839
Capitalization		8,897			7,429			6,933
Less Unrestricted Cash		(66	)		(491	)		(25	)
Net Capitalization	$	8,831		$	6,938		$	6,908
Debt-to-Capitalization Ratio		46.2	%		41.8	%		44.0	%
Net Debt-to-Capitalization Ratio		45.8	%		37.7	%		43.8	%
Consolidated Debt/Capitalization **
Debt	$	14,690		$	12,829		$	12,495
Minority Interests		539			458			474
Less Minority Interests on Lot Options		(497	)		(416	)		(430	)
Stockholders’ Equity		4,750			4,281			3,839
Capitalization		19,482			17,152			16,378
Less Unrestricted Cash		(79	)		(503	)		(38	)
Net Capitalization	$	19,403		$	16,649		$	16,340
Consolidated Debt-to-Capitalization Ratio		75.4	%		74.8	%		76.3	%
Consolidated Net Debt-to-Capitalization Ratio		75.3	%		74.0	%		76.2	%

*	Capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity. Capitalization presented above reflects Financial Services on an equity basis and does not include debt attributable to Financial Services.
**	Consolidated capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity, including Financial Services.

Net debt-to-capitalization ratios are provided reflecting net capitalization, including net debt (debt less unrestricted cash), minority interest (excluding lot options), and stockholders’ equity. See Attachments 2 and 3 of the Earnings Release for more information.