CTX Qwest Corp. 7.00% Notes Due 2052

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, Jan. 24 /PRNewswire-FirstCall/ -- 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. 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. 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 at http://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 Attachment 1 Centex Corporation and Subsidiaries Revenues and Earnings by Lines of Business (Dollars in thousands, except per share data) Quarter Ended December 31, (unaudited) 2005 2004 (B) Change Revenues Home Building (A) $3,003,650 $2,239,451 34% Financial Services 326,077 266,701 22% Construction Services 402,927 445,468 (10%) Other 5,713 38,075 (85%) Total $3,738,367 $2,989,695 25% Operating Earnings Home Building (A) $504,923 $347,175 45% Financial Services 53,949 46,003 17% Construction Services 6,466 6,398 1% Other (2,558) 6,338 (140%) Total Operating Earnings 562,780 405,914 39% Corporate General Expenses (26,775) (23,137) Interest Expense (3,009) (4,961) Earnings from Continuing Operations Before Income Taxes 532,996 377,816 41% Income Taxes (200,247) (135,858) Earnings from Continuing Operations 332,749 241,958 38% Earnings (Loss) from Discontinued Operations, net (A) (3,405) 11,813 Net Earnings $329,344 $253,771 30% Earnings Per Share - Basic Earnings per Share - Continuing Operations $2.63 $1.93 36% Earnings (Loss) per Share - Discontinued Operations (0.03) 0.09 Earnings Per Share - Basic $2.60 $2.02 29% Earnings Per Share - Diluted Earnings per Share - Continuing Operations $2.52 $1.82 38% Earnings (Loss) per Share - Discontinued Operations (0.03) 0.09 Earnings Per Share - Diluted $2.49 $1.91 30% Average Shares Outstanding: Basic 126,572,663 125,593,379 1% Diluted 132,077,763 132,547,190 -% (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. Centex Corporation and Subsidiaries Revenues and Earnings by Lines of Business (Dollars in thousands, except per share data) Nine Months Ended December 31, (unaudited) 2005 2004 (B) Change Revenues Home Building (A) $8,291,236 $6,270,124 32% Financial Services 956,145 817,945 17% Construction Services 1,160,904 1,331,913 (13%) Other 53,570 121,792 (56%) Total $10,461,855 $8,541,774 22% Operating Earnings Home Building (A) $1,304,463 $853,929 53% Financial Services 155,410 156,829 (1%) Construction Services 13,192 16,378 (19%) Other (8,206) 11,378 (172%) Total Operating Earnings 1,464,859 1,038,514 41% Corporate General Expenses (70,935) (61,741) Interest Expense (8,705) (14,078) Earnings from Continuing Operations Before Income Taxes 1,385,219 962,695 44% Income Taxes (490,498) (345,531) Earnings from Continuing Operations 894,721 617,164 45% Earnings (Loss) from Discontinued Operations, net (A) 2,823 24,452 Net Earnings $897,544 $641,616 40% Earnings Per Share - Basic Earnings per Share - Continuing Operations $7.00 $4.96 41% Earnings (Loss) per Share - Discontinued Operations 0.02 0.20 Earnings Per Share - Basic $7.02 $5.16 36% Earnings Per Share - Diluted Earnings per Share - Continuing Operations $6.68 $4.69 42% Earnings (Loss) per Share - Discontinued Operations 0.02 0.18 Earnings Per Share - Diluted $6.70 $4.87 38% Average Shares Outstanding: Basic 127,933,898 124,404,141 3% Diluted 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 Centex and Subsidiaries Corporation* Financial Services Dec. 31, March 31, Dec. 31, March 31, Dec. 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 Centex Financial Subsidiaries Corporation* Services For the Nine For the Nine For the Nine Months Ended Months Ended Months Ended December 31, December 31, 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, 2005 2004 HOME BUILDING Revenues - Housing $2,956,351 100.0% $2,172,463 100.0% Cost of Sales - Housing (2,080,742) (70.4%) (1,554,807) (71.6%) Gross Margin - Housing 875,609 29.6% 617,656 28.4% Revenues - Land Sales & Other 47,299 66,988 Cost of Sales - Land Sales & Other (45,560) (54,362) Gross Margin - Land Sales & Other 1,739 12,626 Total Gross Margin 877,348 29.2% 630,282 28.1% Selling, General & Administrative (421,327) (14.0%) (326,551) (14.6%) Other Income 48,902 1.6% 43,444 2.0% Operating Earnings $504,923 16.8% $347,175 15.5% Units Closed 9,504 8,047 Average Unit Sales Price $311,064 $269,972 % Change 15.2% 10.0% Operating Earnings per Unit $53,127 $43,143 % Change 23.1% 28.8% Average Neighborhoods 635 598 % Change 6.2% 6.8% Centex Corporation and Subsidiaries Supplemental Home Building Data (Dollars in thousands, except per unit data) (unaudited) Nine Months Ended December 31, 2005 2004 HOME BUILDING Revenues - Housing $8,030,378 100.0% $6,097,874 100.0% Cost of Sales - Housing (5,676,908) (70.7%) (4,407,870) (72.3%) Gross Margin - Housing 2,353,470 29.3% 1,690,004 27.7% Revenues - Land Sales & Other 260,858 172,250 Cost of Sales - Land Sales & Other (196,115) (154,088) Gross Margin - Land Sales & Other 64,743 18,162 Total Gross Margin 2,418,213 29.2% 1,708,166 27.2% Selling, General & Administrative (1,181,024) (14.2%) (908,743) (14.5%) Other Income 67,274 0.7% 54,506 0.9% Operating Earnings $1,304,463 15.7% $853,929 13.6% Units Closed 26,896 23,261 Average Unit Sales Price $298,571 $262,150 % Change 13.9% 8.7% Operating Earnings per Unit $48,500 $36,711 % Change 32.1% 24.2% Average Neighborhoods 618 581 % Change 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 Nine Months Ended December 31, 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 Nine Months Ended December 31, 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, 2005 2004 Change Mid-Atlantic $634,095 $392,378 62% Southeast 476,911 336,135 42% Midwest 377,374 357,025 6% Southwest 544,375 378,903 44% West Coast 923,596 708,022 30% $2,956,351 $2,172,463 36% Centex Corporation and Subsidiaries Supplemental Home Building Data Housing Activity (Values) by Geographic Area Housing Revenues - Closings (Dollars in thousands) Nine Months Ended December 31, 2005 2004 Change Mid-Atlantic $1,713,464 $1,136,601 51% Southeast 1,336,313 973,718 37% Midwest 1,097,740 1,034,362 6% Southwest 1,371,185 1,044,066 31% West Coast 2,511,676 1,909,127 32% $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, 2005 2004 Change Originations Builder 6,616 5,463 21% Retail 9,813 9,897 (1%) Total 16,429 15,360 7% Applications Builder 5,908 5,463 8% Retail 7,728 8,603 (10%) Total 13,636 14,066 (3%) Loan Volume (in billions) $3.74 $3.06 22% Average Loan Size $227,500 $199,500 14% Operating Profit per Loan $1,278 $1,365 (6%) Centex Corporation and Subsidiaries Supplemental Financial Services Data CTX Mortgage Company Nine Months Ended December 31, 2005 2004 Change Originations Builder 18,480 15,688 18% Retail 35,028 35,400 (1%) Total 53,508 51,088 5% Applications Builder 20,372 17,330 18% Retail 29,975 29,427 2% Total 50,347 46,757 8% Loan Volume (in billions) $11.84 $9.66 23% Average Loan Size $221,200 $189,000 17% Operating Profit per Loan $1,177 $1,463 (20%) Centex Home Equity Company Quarter Ended Nine Months Ended December 31, 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 As of As of Dec. 31, March 31, Dec. 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. CPLBF FCMN Contact: ggoodman@centex.com DATASOURCE: Centex Corporation CONTACT: Leldon E. Echols, Executive Vice President and Chief Financial Officer, or Matthew G. Moyer, Vice President-Investor Relations, both of Centex Corporation, +1-214-981-5000 Web site: http://www.centex.com/

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