Toll Brothers' Sales Plummet

HORSHAM, Pa. — Luxury home builder Toll Brothers says preliminary results show homebuilding revenue fell 30 percent in its fiscal second quarter amid a weak spring selling season.

Horsham, Pa.-based Toll Brothers Inc. also says it expects to continue to face "challenging times" ahead, given soft conditions in most markets.

Second-quarter homebuilding revenue slid to $817.9 million from $1.17 billion a year ago. The company expects to report quarterly pretax charges of $225 million to $375 million to write down land values.

Backlog dropped by half to $2.08 billion from $4.15 billion at the end of the 2007 quarter. But, the cancellation rate improved to 24.9 percent from 28.4 percent in the fourth quarter, and 29.8 percent a year ago.

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AP Business Writer Jennifer Malloy

Comments

[Opus007]

Toll doesn't really have the quality for the really high end buyers and the move up market is completely stalled because no one can sell their houses.

[JScott]

Hey Toll Bros. start building sensible (and maybe affordable) homes and ya might make some money.
No More McMansions!!!!!

[Donnat]

This is good. We've been tearing up too much undeveloped land for housing developments. We need to slow down and figure out better ways to take care of our dwindling wild spaces. Infill and housing density, not suburban sprawl.

[thegreatgiginthesky]

They build some gorgeous homes but man are they expensive.

[DontPayTheToll]

If only they didn't lie to their customers, and refuse to give deposit refunds back when they're caught lying.. People: they're really not being honest with you. Don't buy from them.

There are many other good and honest builders to choose from that do a better job.

[thegreatgiginthesky]

Most builders do this. I was very surprised with the poor quality of insulation Toll put into their homes. These are homes priced at $450,000 and above. As far as energy efficient homes Toll ranks in the bottom. Think they were using R13 in the wall and attic combined with no raidient barrier roof decking and no wrapping of the home to protect the batt insulation from moisture. To me that suggests poor quality combined with no caring if the customer has problems down the road. Compare those homes with one by Drees who goes so far as to give you a SEER 16 Lennox AC Unit along with radient barriers in a home that is priced in the 350's