Centex 8-K Results of Operations and Financial Condition

Exhibit 99.1

	www.centex.com
	P.O. Box 199000
	Dallas, Texas 75219-9000
	2728 North Harwood
	Dallas, Texas 75201-1516
	Phone: (214) 981-5000

N e w s R e l e a s e

FOR IMMEDIATE RELEASE     

For additional information, contact at (214) 981-5000:
Matthew G. Moyer, Vice President—Investor Relations
Eric Bruner,Director—Public Relations
http://www.centex.com

CENTEX REPORTS FIRST QUARTER RESULTS

DALLAS– July 24, 2007: Centex Corporation(NYSE: CTX)today reported financial results for its fiscal first quarter ended June 30, 2007.

Highlights of the quarter ended June 30, 2007 (compared to last year’s first quarter):

• Loss from continuing operations was $1.08 per diluted share

• Sales (orders) decreased 22% to 6,474

• Reduced homebuilding SG&A expenses by 20%, or $80 million

• Reduced inventory of unsold homes by 17% to 4,815

• Homebuilding cancellation rate improved 150 bps to 31.2%

     Tim Eller, Centex Corporation Chairman and CEO, said, “In the quarter, we reduced overhead expenses and unsold inventory, and 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.”

CORPORATE RESULTS

     Fiscal 2008’s first-quarter revenues were $1.94 billion, 31% lower than the same quarter last year. The loss from continuing operations for the first quarter was $131 million, or a loss of $1.08 per diluted share, down from earnings of $172 million, or $1.37 per diluted share, in the previous year’s fiscal first quarter. Included in the first quarter of fiscal 2008’s loss from continuing operations is $193 million on a pre-tax basis, or $0.98 per diluted share, of impairments and other land charges.

HOME BUILDING

     Fiscal 2008’s first-quarter revenues were $1.80 billion, 32% lower than the same quarter last year as a result of a 27% decrease in closings to 6,095 homes. Home building reported an operating loss of $172 million for the quarter, after $193 million in impairments and other land charges. The housing operating loss (housing revenues less housing cost of sales and SG&A) was $5 million, down from earnings of $318 million in the previous year. The decrease is a result of lower unit volume, a 5.5% decrease in the unit average sales price and higher sales incentives.

Centex Corporation, Page 2 of 2

FINANCIAL SERVICES

     Operating earnings from Financial Services totaled $15 million for the first quarter of fiscal 2008, 35% lower than the same quarter a year ago due principally to lower origination volume. CTX Mortgage originated loans for 78% of Centex Homes’ buyers during the first quarter, up one percentage point versus last year’s first quarter. Centex’s Financial Services operations provide Centex home buyers with a streamlined home-closing and settlement process.

NON-GAAP FINANCIAL MEASURES

     Explanations of non-GAAP financial measures used in this press release and the accompanying attachments, and reconciliations of the non-GAAP financial measures to the comparable GAAP financial measures, are given in the applicable attachments.

     Centex’s senior management will conduct a conference call to discuss the first quarter fiscal year 2008 financial results at 10 a.m. Eastern Time (9 a.m. Central Time) on Wednesday, July 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, 2007 (including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which is 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, customer cancellations, shortages or price changes in raw materials or labor, and other factors that could affect demand for our homes or mortgage loans or the profitability of our operations. 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) Consolidated Balance Sheet
(3) Home Building Revenues and Earnings
(4) Supplemental Home Building Data
(5) Supplemental Home Building Segment Data
(6) Supplemental Financial Services Data
(7) Supplemental Financial Data
(8) Reconciliation of Housing/Home Building Operating Earnings

-MORE-

Attachment 1

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

	Quarter Ended
	June 30,
	(unaudited)
	2007			2006 (C)			Change
Revenues
Home Building (A)	$	1,803,820		$	2,649,837			(32	%)
Financial Services		97,966			122,741			(20	%)
Other		39,629			31,322			27	%
Total	$	1,941,415		$	2,803,900			(31	%)
Operating Earnings (Loss)
Home Building (A)	$	(171,779	)	$	311,913			(155	%)
Financial Services		14,969			23,087			(35	%)
Other		6,134			(1,767	)		447	%
Total Operating Earnings (Loss)		(150,676	)		333,233			(145	%)
Corporate General and Administrative Expenses (B)		(44,981	)		(54,770	)
Earnings (Loss) from Continuing Operations Before Income Taxes		(195,657	)		278,463			(170	%)
Income Tax (Provision) Benefit		64,322			(106,035	)
Earnings (Loss) from Continuing Operations		(131,335	)		172,428			(176	%)
Earnings (Loss) from Discontinued Operations, net		3,376			(12,171	)
Net Earnings (Loss)	$	(127,959	)	$	160,257			(180	%)
Earnings (Loss) Per Share — Basic
Continuing Operations	$	(1.08	)	$	1.41			(177	%)
Discontinued Operations		0.03			(0.10	)
Earnings (Loss) Per Share — Basic	$	(1.05	)	$	1.31			(180	%)
Earnings (Loss) Per Share — Diluted
Continuing Operations	$	(1.08	)	$	1.37			(179	%)
Discontinued Operations		0.03			(0.10	)
Earnings (Loss) Per Share — Diluted	$	(1.05	)	$	1.27			(183	%)
Average Shares Outstanding:
Basic		121,469,951			121,969,085			—	%
Diluted		121,469,951			126,233,469			(4	%)

(A)	See Attachment 3 for detailed home building segment revenues and earnings.
(B)	In connection with the change in the Company’s reporting segments at March 31, 2007, home building corporate general and administrative expenses have been reclassified to Corporate General and Administrative Expenses consistent with the structure of the internal organization. Prior periods have been restated accordingly.
(C)	Certain prior year items have been reclassified to conform to current period classifications.

Attachment 2

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

	June 30,		March 31,
	2007		2007
Assets
Cash -
Unrestricted	$	233	$	883
Restricted		147		146
Receivables -
Residential Mortgage Loans Held for Sale		1,474		1,688
Other Receivables		187		228
Inventories -
Homebuilding		8,671		8,654
Land Held Under Option Agreements not Owned		208		282
Other		16		15
Investments		274		282
Property and Equipment, net		126		136
Goodwill		222		219
Deferred Charges and Other Assets		887		667
	$	12,445	$	13,200
Liabilities and Stockholders’ Equity
Accounts Payable and Accrued Liabilities	$	2,198	$	2,344
Debt -
Non-Financial Services		3,849		3,904
Financial Services		1,457		1,663
Minority Interests		148		177
Stockholders’ Equity (A)		4,793		5,112
	$	12,445	$	13,200

(A) Effective April 1, 2007, the Company adopted Financial Accounting Standards FIN 48, “Accounting for Uncertainty in Income Taxes”. The change in accounting for income taxes reduced retained earnings by $208 and stockholders’ equity by $213.

Attachment 3

Centex Corporation and Subsidiaries
Home Building Revenues and Earnings
(Dollars in thousands)

	Quarter Ended
	June 30,
	(unaudited)
	2007			2006		Change
Home Building Revenues
East	$	360,776		$	544,423		(34	%)
Southeast		213,857			397,782		(46	%)
Central		185,069			289,914		(36	%)
Texas		234,733			244,356		(4	%)
Northwest		395,525			504,879		(22	%)
Southwest		371,204			592,033		(37	%)
Other Home Building		42,656			76,450		(44	%)
Total Home Building	$	1,803,820		$	2,649,837		(32	%)
Home Building Operating Earnings (Loss)(A)
East	$	18,052		$	82,979		(78	%)
Southeast		(13,017	)		60,602		(121	%)
Central		(6,367	)		9,633		(166	%)
Texas		14,136			20,347		(31	%)
Northwest		(32,081	)		73,290		(144	%)
Southwest		(115,600	)		48,170		(340	%)
Other Home Building		(36,902	)		16,892		(318	%)
Total Home Building	$	(171,779	)	$	311,913		(155	%)

(A) Operating Earnings above exclude home building corporate general and administrative expenses which have been reclassified to Corporate General and Administrative Expenses in connection with the change in the Company’s reporting segments at March 31, 2007. Further information regarding the home building reporting segments shown above may be found in Part 1, Item 1 (Business) of Centex’s Form 10-K for the fiscal year ended March 31, 2007. Prior periods have been restated accordingly.

Attachment 4

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

MARGIN DATA

	Quarter Ended June 30,
	2007					2006
Revenues — Housing	$	1,774,738		100.0	%	$	2,562,058		100.0	%
Cost of Sales — Housing		(1,481,351	)	(83.5	%)		(1,866,511	)	(72.9	%)
Gross Margin — Housing		293,387		16.5	%		695,547		27.1	%
Revenues — Land Sales & Other		29,082					87,779
Cost of Sales — Land Sales & Other		(175,567	)				(104,777	)
Gross Margin — Land Sales & Other		(146,485	)				(16,998	)
Total Gross Margin		146,902		8.1	%		678,549		25.6	%
Selling, General & Administrative (A)		(298,628	)	(16.5	%)		(377,304	)	(14.2	%)
Other Income (Expense) (B)		(20,053	)	(1.1	%)		10,668		0.4	%
Operating Earnings (Loss)	$	(171,779	)	(9.5	%)	$	311,913		11.8	%
Units Closed		6,095					8,318
Average Unit Sales Price	$	291,179				$	308,014
% Change		(5.5	%)				7.6	%
Average Neighborhoods		676					669
% Change		1.0	%				10.6	%

(A)

Selling, General & Administrative expenses above are those associated with field operations. As noted on Attachments 1 and 3, home building corporate general and administrative expenses have been reclassified to Corporate General and Administrative Expense and are no longer included in the calculation of home building operating earnings, consistent with the structure of the internal organization. Prior periods have been restated accordingly.

(B)

Other Income (Expense) includes earnings (loss) from unconsolidated entities of ($25,353) and $5,505, respectively.

IMPAIRMENTS AND WRITE-OFFS

	Quarter Ended June 30,
	2007		2006		Change
Impairment Charges	$	142,592	$	—		—	%
Write-offs of Land Deposits and Pre-Acquisition Costs		22,870		36,302		(37	%)
Share of Joint Venture Impairments		27,050		—		—	%
Total Impairments and Write-offs	$	192,512	$	36,302		430	%

LOT POSITION

	As of June 30,
	2007		2006		Change
Lot Owned and Controlled:
Lots Owned		96,365		112,976		(15	%)
Lots Controlled		54,348		169,614		(68	%)
Total		150,713		282,590		(47	%)

Attachment 5

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

								Housing Revenues
	Closings (Units)							(Dollars in thousands)
	Quarter Ended June 30,							Quarter Ended June 30,
	2007		2006		Change			2007		2006		Change
East		1,119		1,653		(32	%)	$	354,873	$	543,973		(35	%)
Southeast		716		1,193		(40	%)		208,123		371,008		(44	%)
Central		868		1,320		(34	%)		183,020		288,265		(37	%)
Texas		1,400		1,506		(7	%)		232,391		233,178		—	%
Northwest		987		1,090		(9	%)		392,558		493,362		(20	%)
Southwest		895		1,364		(34	%)		367,931		574,736		(36	%)
Other Home Building		110		192		(43	%)		35,842		57,536		(38	%)
		6,095		8,318		(27	%)	$	1,774,738	$	2,562,058		(31	%)

	Sales (Orders) Backlog							Sales (Orders) Backlog
	(Units)							(Dollars in thousands)
	As of June 30,							As of June 30,
	2007		2006		Change			2007		2006		Change
East		2,011		2,969		(32	%)	$	668,842	$	1,013,154		(34	%)
Southeast		1,546		3,292		(53	%)		456,564		1,115,712		(59	%)
Central		1,849		2,250		(18	%)		372,790		466,242		(20	%)
Texas		2,055		2,517		(18	%)		340,234		390,076		(13	%)
Northwest		1,732		2,270		(24	%)		720,533		1,017,648		(29	%)
Southwest		1,705		3,138		(46	%)		600,143		1,431,164		(58	%)
Other Home Building		132		883		(85	%)		49,067		312,330		(84	%)
		11,030		17,319		(36	%)	$	3,208,173	$	5,746,326		(44	%)

	Sales (Orders) (Units)
	Quarter Ended June 30,
	2007		2006		Change
East		1,282		1,549		(17	%)
Southeast		743		1,017		(27	%)
Central		973		1,308		(26	%)
Texas		1,435		1,834		(22	%)
Northwest		914		1,146		(20	%)
Southwest		1,097		1,329		(17	%)
Other Home Building		30		67		(55	%)
		6,474		8,250		(22	%)

Attachment 6

Centex Corporation and Subsidiaries
Supplemental Financial Services Data
(Unaudited)

CTX Mortgage Company

	Quarter Ended June 30,
	2007		2006		Change
Originations
Builder		4,541		6,065		(25	%)
Retail		7,451		8,917		(16	%)
Total		11,992		14,982		(20	%)
Loan Volume (in billions)	$	2.77	$	3.49		(21	%)
Average Loan Size	$	231,000	$	232,800		(1	%)

Attachment 7

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

	As of June 30, 2007			As of March 31, 2007			As of June 30, 2006
Consolidated Debt/Capitalization (A)
Debt	$	5,306		$	5,567		$	6,548
Minority Interests		148			177			421
Less Minority Interests on Lot Options (C)		(124	)		(153	)		(386	)
Stockholders’ Equity		4,793			5,112			5,023
Capitalization		10,123			10,703			11,606
Less Unrestricted Cash		(233	)		(883	)		(84	)
Net Capitalization	$	9,890		$	9,820		$	11,522
Consolidated Debt-to-Capitalization Ratio		52.4	%		52.0	%		56.4	%
Consolidated Net Debt-to-Capitalization Ratio (D)		51.3	%		47.7	%		56.1	%
Debt/Capitalization, Excluding Financial Services (B)
Debt	$	3,849		$	3,904		$	4,842
Minority Interests		148			176			420
Less Minority Interests on Lot Options (C)		(124	)		(153	)		(386	)
Stockholders’ Equity		4,793			5,112			5,023
Capitalization		8,666			9,039			9,899
Less Unrestricted Cash		(229	)		(871	)		(73	)
Net Capitalization	$	8,437		$	8,168		$	9,826
Debt-to-Capitalization Ratio		44.4	%		43.2	%		48.9	%
Net Debt-to-Capitalization Ratio (D)		42.9	%		37.1	%		48.5	%

(A)	Consolidated capitalization includes debt, minority interest (excluding lot options), and stockholders’ equity, including Financial Services.
(B)	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 or minority interests attributable to Financial Services.
(C)	Pursuant to the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 46, “Consolidation of Variable Interest Entities,” as revised (“FIN 46”), the Company consolidates certain lot option agreements and records the deposit and remaining purchase price related to these options as land held under option agreements not owned with a corresponding increase in minority interests. These minority interests are excluded from the debt-to-capitalization ratio as the Company is not obligated to purchase the properties and pay these amounts.
(D)	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. We believe this ratio reflects the debt/capitalization structure in a more inclusive manner as unrestricted cash could be applied to reduce debt at quarter end.
Debt-to-capitalization is a common financial ratio used in the homebuilding industry to evaluate debt capacity and leverage.

Attachment 8

Centex Corporation and Subsidiaries
Reconciliation of Housing/Home Building Operating Earnings
(Dollars in thousands)
(unaudited)

	Quarter Ended June 30,
	2007					2006
HOME BUILDING
Revenues — Housing	$	1,774,738		100.0	%	$	2,562,058		100.0	%
Cost of Sales — Housing		(1,481,351	)	(83.5	%)		(1,866,511	)	(72.9	%)
Gross Margin — Housing		293,387		16.5	%		695,547		27.1	%
Selling, General & Administrative		(298,628	)	(16.8	%)		(377,304	)	(14.7	%)
Housing Operating Earnings (Loss) (A)		(5,241	)	(0.3	%)		318,243		12.4	%
Revenues — Land Sales & Other		29,082					87,779
Cost of Sales — Land Sales & Other		(175,567	)				(104,777	)
Gross Margin — Land Sales & Other		(146,485	)				(16,998	)
Other Income (Expense)		(20,053	)				10,668
Operating Earnings (Loss)	$	(171,779	)	(9.5	%)	$	311,913		11.8	%

(A) Housing Operating Earnings is defined as housing revenues less housing cost of sales less selling, general & administrative expenses. Housing Operating Margin is defined as housing operating earnings divided by total housing revenues.