Centex
From Wikipedia, the free encyclopedia
Centex (NYSE: CTX) began trading publicly in 1969. Since the company’s founding in 1950 as a Dallas-based residential construction company, it has evolved into a company whose principal operations are focused on residential and commercial construction and related activities, including mortgage financing.
As of 2007, its subsidiary companies operated in the principal business segments of Home Building and Financial Services.
Home Building’s operations currently involve the purchase and development of land or lots and the construction and sale of detached and attached single-family homes (including resort and second home properties and lots) and land or lots. The company has participated in the homebuilding business since 1950 and, in 2005, is the 4th largest homebuilder in the U.S., based on the total number of closings.
Financial Services’ operations consist primarily of mortgage lending, title agency services, and the sale of title insurance and other insurance products. These activities include mortgage origination, servicing, and other related services for homes sold by its subsidiaries and others. The company has been in the mortgage lending business since 1973.
Prior to March 2007, Centex also operated in the commercial construction industry, having purchased a Dallas-based commercial contractor in 1966 (whose business dated back to 1936). Its operations involved the construction of buildings for both private and government interests, including educational institutions, hospitals, multi-unit residential buildings, correctional institutions, airport facilities, office buildings, hotels and resorts, and sports facilities. In March 2007, Centex sold its commercial construction operations to Balfour Beatty, a British-based construction company, in order to focus completely on the residential housing market.
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[edit] Controversy
Centex has been accused of questionable business practices. In 2007 they had a supposed raffle for a new house. Veronica Baca was led to believe she'd won a new home. She had been named a finalist in a contest. She pulled the lucky key that opened a prize door at halftime of a Broncos game. She toured the house. She agreed to let the company use her image in advertisements. She signed a form titled "Centex House Party Grand Prize Release." She was even in the local newspaper. However Centex says they accidentally pulled two winners and a subsequent raffle chose another winner. *[1]
[edit] Potential Bankruptcy
There has been some speculation that Centex may or could possibly declare bankruptcy. Their balance sheet has cash issues, say some analysts, and the Billions in long-term debt could be difficult to re-pay given the current state of the housing industry.
[edit] Divisions
- Centex Destination Properties
- Centex Homes
- Centex Insurance
- Centex Title
- CTX Mortgage
