Centex Corp. (CTX) might have narrowed its fiscal third-quarter loss, but the builder continues to battle slumping revenue, headline-grabbing impairments and an 80% drop in orders depressed by an 89% fall in the west.

Such results continue a grim month for home builders struggling to navigate the worst downturn in decades, one only made worse by the continued financial crisis. Because buyers remain afraid to buy, builders have halted most construction, leaving the sector stuck in a string of quarterly losses and its confidence in tatters.

For the quarter ended Dec. 31, Centex, the nation's third-largest builder by closings and revenue, reported a net loss of $663.9 million, or $5.34 a share, compared with a year-earlier net loss of $975.2 million, or $7.94 a share. "We keep waiting for a catalyst to appear for CTX, unfortunately F3Q09 results are not 'it'," said Fox-Pitt Kelton analyst Rob Stevenson. "While the cash balance continues to climb, operating difficulties are keeping us at an underperform on the stock."

Shares were volatile in early trading, flipping between modest gains and losses. Centex recently was up 6.2% to trade at $9.75 a share.

The results, announced late Tuesday, included $590 million in impairments and other land charges, while year-ago results included $554 million.

Builders continue to feel the sting from overzealous land acquisitions made during the market's height: Since 2006, builders have taken roughly $30 billion in write-downs as they walk away from land contracts and re-evaluate property already purchased.

Centex's charges came in at the high end of the $550 million to $600 million guidance, and slightly above Credit Suisse's $575 million estimate, the firm said.

It expects $770 million of charges in future quarters "based on the weakness in orders and subsequent adjustments to pricing and incentives," noted analyst Dan Oppenheim.

The loss from continuing operations narrowed to $5.34 a share from $7.95. Revenue crumbled 53% to $872.2 million.

Like all builders, the company said it is working to weather the prolonged slump.

"Although the declining economy caused unprecedented buyer hesitancy early in the quarter, we successfully adjusted to the difficult sales environment," said Chairman and Chief Executive Timothy R. Eller.

Eller said the company would continue to reduce its cost structure, accelerate overhead reductions and further cut land-related spending.

Last month, Centex said orders totaled 1,080, compared with 5,537 a year ago and 2,728 in the second quarter. Closings came in at 3,405, down 49% and 10%, respectively. However, the company also noted better sales volumes in December and January, due to price reductions and incentives.

The average unit sales price slipped 10% to $241,244. That's compared with more than $315,000 in early 2006, according to J.P. Morgan.

Other major builders, including NVR Inc. (NVR), Meritage Homes Corp. (MTH), Ryland Group Inc. (RYL) and D.R. Horton Inc. (DHI) have recently detailed grim quarterly results.

-Dawn Wotapka, Dow Jones Newswires; 201-938-5248; dawn.wotapka@dowjones.com

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com

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