Industry News

Home builder anticipates slowing demand

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Luxury home builder Toll Brothers said today that moderating home prices, softening demand and a tougher regulatory environment would contribute to fewer new-home deliveries next year and would likely affect full-year profits. Investors reacted negatively to the news, sending the home builder's shares (NYSE: TOL) down $4.61, or 11.7 percent Tuesday morning. Toll Brothers today released its preliminary and unaudited fourth-quarter and full fiscal 2005 results, saying that the fourth quarter represents the highest revenues for any quarter in the company's history. The company will announce final totals when it releases fourth-quarter and fiscal year-end earnings results on Dec. 8. Robert I. Toll, chairman and CEO, said the company surpassed its expectations for fourth-quarter home deliveries, producing $2 billion in quarterly revenues. Toll Brothers ended the quarter with 230 selling new home communities, he said in a statement. "Because we have fewer selling communities than pr...