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Luxury-home builder Toll Brothers Inc., in a preliminary earnings announcement today, reported net income of $26.5 million for the quarter ended July 31, with cancellations totaling 23.8 percent of contracts for the quarter. The quarterly net income in the third quarter was down 84.8 percent compared with third-quarter 2006 net income of $174.6 million, the company reported. Third-quarter net income amounted to 16 cents per share diluted, compared with $1.07 per share diluted in third-quarter 2006. The company reported 1,457 signed contracts before cancellations in the third quarter, down 17 percent compared to signed contracts in third-quarter 2006, with cancellations totaling 347 units in third-quarter 2007. "During this downturn, we have experienced a much higher rate of cancellations than at any time in our 21-year history as a public company. While our cancellation rates are at the very low end of the range compared to the other major public builders, they are still, for us, ...