Horsham, PA, February 7, 2006--Luxury home builder Toll Brothers Inc. said Tuesday its first-quarter revenue rose 35 percent to about $1.33 billion, but the company lowered its guidance for home deliveries this year as it noted softening demand in a number of markets.
A Thomson Financial survey of nine analysts put the revenue estimate at $1.38 billion, on average.
The homebuilder said its backlog as of Jan. 31 rose 22 percent to about $5.95 billion. However, signed contracts were down about 21 percent from last year to $1.14 billion.
"Selling homes this first quarter was certainly more difficult than one year ago," said Robert I. Toll, chairman and chief executive, in a statement. "We experienced softening demand, to varying degrees, in a number of markets, and continue to be constrained by long delivery times at many of our communities."
"Although demand is not as strong as it was one year ago, most of our markets remain fundamentally healthy, based on job and income growth data," Toll said.
Deliveries were below the company's projection due primarily to delays in obtaining certificates of occupancy, construction inspections and utility hook-ups.
As a result, Toll Brothers reduced its fiscal-year deliveries guidance to between 9,200 and 9,900 homes, compared with prior guidance to 9,500 to 10,200 deliveries and 8,769 deliveries in fiscal 2005.
The company will announce final results and update its earnings guidance when it releases first-quarter earnings results on Feb. 23.
