Horsham, PA, November 8, 2005—Homebuilder Toll Brothers reported record fourth-quarter revenue, but warned new home deliveries and earnings next year would probably fall short of its expectations.
The luxury home builder reported a 39% rise in fourth-quarter home-building revenue to $2.01 billion -- more than its annual production five years ago.
At the end of October, the company had a record backlog of $6.01 billion, up 36%. Also, fourth-quarter contracts rose 4 percent to $1.59 billion.
But a number of factors, including tougher land-review regulations in many states, has stretched out the time needed to complete and sell new homes.
As a result, Toll Brothers reduced the number of home deliveries it expects in fiscal 2006 to between 9,500 and 10,200 homes. The company had earlier forecast 10,200 to 10,600 homes.
The company said the results were preliminary and unaudited and it will final totals when it releases fourth-quarter and fiscal year end earnings results on December 8, 2005.
