Centex Reaffirms Fiscal 2004 Earnings Guidance At UBS Building & Building Products Conference
Updated November 5, 2003 9:46 a.m.
DOW JONES NEWSWIRES
DALLAS -- Homebuilder Centex Corp. (CTX) reaffirmed its 2004 earnings guidance, even though it now expects to push the planned spinoff of Centex Construction Products Inc. (CXP) into early 2004, from late December.
At the same time, Centex Construction Products announced it will boost its quarterly dividend to 30 cents from 5 cents, effective when the spinoff is complete.
In a press release Wednesday, Centex Corp. backed its prior 2004 earnings guidance of $11 to $11.25 a share, including the Centex Construction separation.
A Thomson First Call survey of 12 analysts produced an average earnings estimate of $11.36 a share for the company in 2004.
Centex Corp. said the new target for shedding the construction operation takes into account delays during the holidays and the reluctance of some shareholders to take the distribution so close to the end of the calendar year.
The company now sees the deal closing in January 2004.
Meanwhile, Centex Construction said it will still pay the previously-announced quarterly dividend of 5 cents on Jan. 6 to shareholders of record on Dec. 9. The increased cash dividend would take effect with the first quarterly dividend following the completion of the spinoff.
As reported, Centex Construction will reclassify 9.2 million of about 12 million Centex Construction shares held by Centex Corp. into a new class B common stock, which Centex Corp. would then distribute, along with the Centex Construction common shares, to its stockholders. Centex Construction would also pay a special one-time cash dividend of $6 a share to all of its shareholders just before the spinoff.
The deal must still be approved by regulators and shareholders.
Centex Corp. shares recently traded at $99.60, up $1.30, or 1.3%, on the New York Stock Exchange.
Company Web sites: centex.com; centex-cxp.com |
