The downward adjustment is being attributed to slower home salesin the manufactured division, the impact of higher interest rates,an accounting change for Centex Home Equity Corp. and an earningsdecline as a result of lower gypsum wallboard prices. Shareholders'concern should be offset by news that a contract is pending withGaylord Entertainment Co. for the general contracting award for1,500-room Opryland Hotel Texas in Grapevine. Overall, the CentexConstruction Group is making second quarter 2001 look rosy, withnew contracts totaling $416 million, up 60% from second quarter2000.

Second-quarter contracting and construction services are up 28%from $5.1 million recorded in fiscal 2000 while revenues havejumped 14%, coming in at $330.4 million. As of Sept. 30, thebacklog of unfinished projects totals a record $1.47 billion, up31% from a year ago. A 22% improvement has been recorded in thesix-months' earning, with a $13.1 million total in comparison to$10.7 million for fiscal 2000 accounting. Meanwhile, revenues aredown 2% to $640.7 million.

While the construction group is going gung-ho, that's not thecase overall with all Centex divisions. Second-quarter net earningsare 10% less than last year's second quarter although the $1.6billion in revenues reflect a 12% jump. Diluted earnings per shareare 98 cents, 8% lower than the $1.07 posted for the same quarterin fiscal 2000. In the first six months of fiscal 2001, netearnings are slightly more than $107 million, down 13% for the sameperiod last year. The six months' diluted earning of $1.79 pershare are 11% less than last fiscal year's $2.02 per share.However, the six months' revenue total is 8% higher, coming in morethan $3 billion in comparison to $2.8 billion in fiscal 2000.

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