More Housing Horrors
No surprise here... Homebuilder Toll Brothers said the weak U.S. housing market drove down its quarterly profit 67 percent after write-downs for lower land values, and lowered its 2007 forecast.
Toll said it earned $54.3 M, or 33 cents per share, down 66% from $163.9 M, or 98 cents per share, YOY quarterly.
The results included write downs of $96.9 M for the lower value of the land Toll owns or from forfeiting payments for land options Toll decided not to exercise.
Total revenue for the quarter fell 19 % to $1.09 B while contracts for new homes fell 33 % to 1,027 units. The value of the contracts fell 34 % to $749 M.
U.S. housing demand has dropped on higher prices and interest rates and Toll said it could not yet see a rebound going into the industry's spring selling season.
Prospective buyers canceled their contracts at a rate of 33% during the quarter.
Investors, home builders and other industry watchers have been looking for signs of an upturn, but Toll's chief executive expressed caution.
"There are too many soft markets at this stage of the selling season to call a general upturn in the new home market,"
Based on the company's current backlog, the impact of lower Q1 contracts and the continuing higher than normal cancellation rate, Toll lowered its forecast for 2007.
Why, the nerve of those heretics at Toll. How dare they scoff at and contradict the NRA and Fed's claim that a bottoming and firming has occured.
What does Toll know about the real housing market anyway?
Toll has to "manage expectations" of their investors and their rhetoric sounds reality based, unlike the NRA and the FED.
Toll said it earned $54.3 M, or 33 cents per share, down 66% from $163.9 M, or 98 cents per share, YOY quarterly.
The results included write downs of $96.9 M for the lower value of the land Toll owns or from forfeiting payments for land options Toll decided not to exercise.
Total revenue for the quarter fell 19 % to $1.09 B while contracts for new homes fell 33 % to 1,027 units. The value of the contracts fell 34 % to $749 M.
U.S. housing demand has dropped on higher prices and interest rates and Toll said it could not yet see a rebound going into the industry's spring selling season.
Prospective buyers canceled their contracts at a rate of 33% during the quarter.
Investors, home builders and other industry watchers have been looking for signs of an upturn, but Toll's chief executive expressed caution.
"There are too many soft markets at this stage of the selling season to call a general upturn in the new home market,"
Based on the company's current backlog, the impact of lower Q1 contracts and the continuing higher than normal cancellation rate, Toll lowered its forecast for 2007.
Why, the nerve of those heretics at Toll. How dare they scoff at and contradict the NRA and Fed's claim that a bottoming and firming has occured.
What does Toll know about the real housing market anyway?
Toll has to "manage expectations" of their investors and their rhetoric sounds reality based, unlike the NRA and the FED.
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