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| Toll Brothers says 4Q profits fell 44 percent Toll Brothers, Inc., the builder of luxury homes, reported results for net income, revenues, backlog and contracts for its fourth quarter and fiscal year ended October 31, 2006. FY 2006's fourth-quarter net income was $173.8 million, or $1.07 a share, compared to FY 2005's fourth-quarter record of $310.3 million, or $1.84 a share. FY 2006 fourth-quarter earnings per share, including write-downs, declined 42% versus FY 2005. FY 2006 full-year net income was $687.2 million, or $4.17 a share, compared to FY 2005's fiscal-year record of $806.1 million, or $4.78 a share. FY 2006 earnings per share, including write-downs, declined 13% versus FY 2005. FYE 2006 Stockholders' Equity increased 24% over FYE 2005 and return on FY 2006 beginning equity was 25%. FY 2006's fourth-quarter total revenues were $1.81 billion compared to the fourth-quarter record of $2.02 billion in FY 2005; FY 2006 fourth-quarter-end backlog was $4.49 billion compared to the fourth-quarter record of $6.01 billion in FY 2005; and FY 2006 fourth-quarter signed contracts were $706 million compared to the fourth-quarter record of $1.59 billion in FY 2005. Revenues, backlog and contracts declined 10%, 25% and 56%, respectively, compared to FY 2005's record fourth-quarter results. FY 2006's full-year total revenues were a record $6.12 billion, up 6% compared to FY 2005's previous record of $5.79 billion. FY 2006 full-year signed contracts were $4.46 billion, down 38% compared to the record of $7.15 billion in FY 2005. In response to current market conditions, Toll Brothers is reevaluating and renegotiating many of its optioned land positions. The company ended FY 2006 with approximately 74,000 lots under control compared to approximately 83,200 at FYE 2005 and down 19% from its high of approximately 91,200 lots at FY 2006's second-quarter-end. Projecting revenues and earnings results is difficult in the current environment. As previously announced, based on its current backlog, the impact of lessened fourth-quarter contracts and the increased rate of cancellations, in FY 2007, Toll Brothers expects to deliver between 6,300 and 7,300 homes. The company expects to produce total home building revenues of between $4.34 billion and $5.10 billion, including percentage of completion revenues of between $180 million and $200 million, in FY 2007. write your comments about the article :: © 2006 Construction News :: home page |