Industry News

Home builder reports some markets may have hit bottom

Rate of cancellations is higher than usual for Toll Brothers

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Luxury-home builder Toll Brothers Inc. reported net income of $173.8 million, or $1.07 per share diluted, compared with a fourth-quarter record of $310.3 million in fourth-quarter 2005. The earnings were close to analysts' expectations. The company "is re-evaluating and renegotiating many of its optioned land positions," according to the earnings announcement, and the rate of cancellations was higher than normal. Net income included pre-tax write-downs of $115 million, the company reported, compared with pre-tax write-downs in the fourth quarter of $1.4 million. Fourth-quarter earnings per share, including write-downs declined 42 percent compared to fourth-quarter 2005. The company's full-year net income was $687.2 million, or $4.17 per share diluted, compared with record net income of $806.1 million for the 2005 fiscal year. Earnings per share, including write-downs, declined 13 percent for the full year compared to 2005, the company also reported. Excluding write-downs, earning...