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| Toll Brothers warns on profits  Toll Brothers, the largest U.S. luxury home builder, reported that for the period ended April 30, 2007, second-quarter home building revenues were approximately $1.17 billion, second-quarter-end backlog was approximately $4.15 billion and second-quarter net signed contracts were approximately $1.17 billion. These totals were down 19%, 32% and 25%, respectively, compared to FY 2006's second quarter results. For the six-month period ended April 30, 2007, home building revenues were approximately $2.26 billion and net signed contracts were approximately $1.92 billion, a decline of 19% and 29%, respectively, versus FY 2006's six-month results.Robert I. Toll, chairman and chief executive officer, stated: "Twenty months into this housing downturn, we continue to face difficult conditions in most of our markets. Although there is variation among markets, our traffic this quarter, on average, has been flat on a gross basis, and down approximately 20% on a per community (same store) basis compared to last year's second quarter. While we have not yet finalized our analysis, we estimate that write-downs (pre-tax) in the second quarter will be between $90 million and $130 million. Given the current state of the market, we no longer expect to achieve the most recent quarterly and annual guidance we provided on February 22, 2007. However, even at the upper end of our range of second-quarter write-downs, we expect to report a profit for our second quarter. write your comments about the article :: © 2007 Construction News :: home page |