Huntingdon Valley, PA, October 6-- Luxury homebuilder Toll Brothers Inc. said it expects to see at least 30 percent growth in net income in fiscal year 2005 on strong demand for more expensive homes as maturing baby boomers enter their peak earning years.
The company also said it expects to see 20 percent revenue and net income growth in fiscal year 2006.
Toll Brothers added that it expects cancellation rates in Las Vegas of about 5 percent, consistent with company averages in other markets over the past several years, due to anti-speculation clauses in sales contracts.
The outlook came one day after shares of No. 2 U.S. home builder Pulte Homes Inc. fell after the company warned of lower-than-expected third quarter earnings due to weak sales in Las Vegas.
Robert Toll, chairman and chief executive of Toll Brothers, said the company projects revenue of about $190 million in Nevada in fiscal 2004, or 5 percent of total revenues and a 40 percent gain from 2003.
"We have introduced a diversity of product lines and are enjoying strong demand from both move-up and empty-nester buyers across a variety of price points," he said in a statement. "We believe Las Vegas is a land-constrained market. Demand outweighs supply," Toll said.
