Centex's ( CTX) loss swelled to $975 million for its December quarter, while new home orders tumbled 10%.

On a per-share basis, the loss amounted to $7.94, substantially worse than the 78 cents that analysts expected, according to Thomson Financial. In the year-earlier fiscal third quarter, Centex recorded a loss of $228.1 million, or $1.90 a share.

The latest quarter's loss primarily was due to $554 million of land impairment charges and a $500 million deferred tax valuation allowance charge. But the top line was weak as well; revenue fell 30% year over year to $1.91 billion in the quarter.

"The housing market continues to correct and tighter mortgage underwriting standards are affecting home prices," Centex CEO Tim Eller said in a statement.

Cancellation rates on Centex's home orders fell 550 basis points from a year earlier to 33%. Unit sales dropped to 5,537 from 6,139 the prior year.

"Our strategy and execution remain consistent, even as we expect economic conditions to soften in the near term," Eller said. "In our fiscal third quarter, we generated about $100 million in cash flow from housing operations, lowered our G&A expenses and reduced our unsold inventory. Our focus continues to be on selling homes, generating cash and structuring for profitability."