Post by unlawflcombatnt on Aug 8, 2007 22:29:37 GMT -6
Toll's Revenue Drops, Sees Delay in Housing Recovery
"Aug. 8 (Bloomberg) -- Toll Brothers Inc., the largest U.S. luxury-home builder, reported a 21 percent drop in third-quarter revenue and said a credit crunch may delay a housing recovery....
Homebuilding sales dropped to $1.21 billion in the period ended July 31 from $1.53 billion a year earlier, the Horsham, Pennsylvania-based company said today in a statement. Analysts projected sales of $1.09 billion. Toll declined to make an earnings forecast for this year.
Chief Executive Officer Robert Toll said ``tightening credit standards for borrowers should reduce the pool of potential buyers'' while some may find it difficult to sell their existing homes. Sales at Toll have fallen for four straight quarters amid the worst housing slump in 16 years.
``With the uncertainties roiling the mortgage markets right now, the pace of home sales could slow further until the credit markets settle down and sort themselves out,'' Robert Toll said in a conference call with analysts. ``If the economy gets worse, I think that you could see a much lengthier downturn for housing.''
Shares of Toll.... down 25 percent this year, compared with a 31 percent drop in a Standard & Poor's measure of 16 home construction companies....
Land Writedowns
Robert Toll said ``no one knows how much longer'' the housing slump will last and it could continue another year and a half. Toll assessed various housing markets during the conference call by giving them grades and said Florida, Nevada and Southern California were among the worst....
Toll said it will write down $125 million to $175 million for land, developments and options in the third quarter, more than double the $72.9 million of writedowns in the second quarter....
Toll's cancellation rate climbed to 24 percent from 19 percent in the previous quarter....
Contracts signed in Toll's north region, which includes New York, New Jersey and Connecticut, fell 5.3 percent. Contracts in Arizona, California, Colorado and Nevada plunged the most, falling 39.5 percent. The homebuilder now owns or controls about 63,000 lots, down from a peak of 91,200 as of April 30, 2006....
Nine-month homebuilding revenue fell 19 percent to $3.47 billion from a year earlier and net contracts signed plunged 30 percent to $2.64 billion.....
The housing slump has left eight homebuilders nursing losses of $1.97 billion and expenses of more than $3.1 billion as property values fall and land purchases are abandoned. Consumers also are delaying purchases on concern home prices will continue to decline. Tighter credit standards because of the collapse of dozens of subprime lenders are also pushing some people out of the mortgage market..."
The full article can be found at
Toll's Revenue Drops, Sees Delay in Housing Recovery
"Aug. 8 (Bloomberg) -- Toll Brothers Inc., the largest U.S. luxury-home builder, reported a 21 percent drop in third-quarter revenue and said a credit crunch may delay a housing recovery....
Homebuilding sales dropped to $1.21 billion in the period ended July 31 from $1.53 billion a year earlier, the Horsham, Pennsylvania-based company said today in a statement. Analysts projected sales of $1.09 billion. Toll declined to make an earnings forecast for this year.
Chief Executive Officer Robert Toll said ``tightening credit standards for borrowers should reduce the pool of potential buyers'' while some may find it difficult to sell their existing homes. Sales at Toll have fallen for four straight quarters amid the worst housing slump in 16 years.
``With the uncertainties roiling the mortgage markets right now, the pace of home sales could slow further until the credit markets settle down and sort themselves out,'' Robert Toll said in a conference call with analysts. ``If the economy gets worse, I think that you could see a much lengthier downturn for housing.''
Shares of Toll.... down 25 percent this year, compared with a 31 percent drop in a Standard & Poor's measure of 16 home construction companies....
Land Writedowns
Robert Toll said ``no one knows how much longer'' the housing slump will last and it could continue another year and a half. Toll assessed various housing markets during the conference call by giving them grades and said Florida, Nevada and Southern California were among the worst....
Toll said it will write down $125 million to $175 million for land, developments and options in the third quarter, more than double the $72.9 million of writedowns in the second quarter....
Toll's cancellation rate climbed to 24 percent from 19 percent in the previous quarter....
Contracts signed in Toll's north region, which includes New York, New Jersey and Connecticut, fell 5.3 percent. Contracts in Arizona, California, Colorado and Nevada plunged the most, falling 39.5 percent. The homebuilder now owns or controls about 63,000 lots, down from a peak of 91,200 as of April 30, 2006....
Nine-month homebuilding revenue fell 19 percent to $3.47 billion from a year earlier and net contracts signed plunged 30 percent to $2.64 billion.....
The housing slump has left eight homebuilders nursing losses of $1.97 billion and expenses of more than $3.1 billion as property values fall and land purchases are abandoned. Consumers also are delaying purchases on concern home prices will continue to decline. Tighter credit standards because of the collapse of dozens of subprime lenders are also pushing some people out of the mortgage market..."
The full article can be found at
Toll's Revenue Drops, Sees Delay in Housing Recovery