Earnings fall 85 percent at Toll Brothers
Luxury home builder Toll Brothers saw net income fall 85 percent in the third quarter, to $26.5 million from $174.6 million last year.
Total revenue fell 30 percent to $1.21 billion from $1.53 billion in the same period last year.
The company took heavy charges and write-offs in the third quarter because of canceled land option contracts and devaluation of property. The company took after-tax write-downs totaling $88.5 million.
The company’s net home contracts declined 31 percent for the quarter, to $727 million from $1.05 billion last year.
CFO Joel Rassman noted the results were in line with earlier predictions of lower results and inconsistencies due to a volatile housing market.
“Given the numerous uncertainties surrounding sales paces, the mortgage markets, market direction and the potential for and size of future impairments, in the current environment we are not comfortable providing fourth-quarter guidance at this time or confirming any previous guidance,” Rassman said.
Toll Brothers builds luxury homes in 22 states.