The purpose of this paper is to provide an overview of two companies in the housing- industry, Centex Homes and KB Home. The information contained herein was obtained from the organization's annual reports and business intelligence information was obtained from their respective web sites. We will also address social responsibility and ethics of the organizations evident in their annual reports in relation to maximizing shareholder wealth.
Since 1950 Centex Homes is said to be the primary business of Centex Corporation, and has been a major contributor to the company's overall growth success for nine consecutive years. Centex is the only homebuilder to rank among the Top 10 on Professional Builder's "Giant 400" list each year since 1968, and is ranked number one in its industry for Fortune magazine's list of "America's Most Admired Companies"(www.centex.com).
Centex Homes' primary function is to obtain land including lots, and to build dwellings for a targeted segment of customers who are seeking to purchase single-family detached homes, condominiums and town-homes.
Customers included in the targeted range are most often first-time home-buyers, those looking to buy-up, customers with active adult lifestyles, build to custom homes on customer-owned lots, resorts and second homes.
The company's home building operations in fiscal year 2005 reached record operating earnings of $1.38 billion, which exceeded 2004 results by 43% (www.centex.com). In addition, during 2005 the company closed in excess of 33,000 homes with an average sales price of $270,000. Furthermore, the company had a backlog of homes at the end of fiscal period 2005 which had been sold to buyers but not yet delivered that that exceeded 2004 results by 21%.
Centex Homes' goal is to become one of the top five homebuilders in the nation. Currently the company has achieved a substantial presence in 38 of the Top 50...