Toll brothers sees housing recovery

By Helen Wright23 August 2012

US luxury homebuilder Toll Brothers reported a jump in net income and revenues in the nine months to 31 July, 2012, and said it was confident of a sustained recovery in most of its regions.

The contractor's net income for the period was US$ 75.7 million, up from US$ 24.8 million for the nine-months to 31 July, 2011. Revenues were also up +19% year-on-year to US$ 1.3 billion, with 2198 units sold, compared to 1854 units for the same period last year.

At 31 July, Toll Brothers' backlog was US$ 1.62 billion, representing 2559 units - figures that were up +57% and +44% year-on-year respectively.

CEO Douglas Yearley said the company was enjoying the most sustained demand it had experienced in over five years.

"The pace of our contract growth has far exceeded the national housing data as we are gaining market share. Additionally, as the only national home building company focused on the luxury market, we are facing limited competition from the capital-constrained small and mid-sized private builders who are our primary competitors," he said.

Mr Yearley said the housing recovery was being driven by pent-up demand, very low interest rates and attractively priced homes.

He added, "Customers who have postponed buying for a number of years are moving into the market. With an industry-wide shortage of inventory in many markets, we are enjoying some pricing power."

Toll Brothers forecast full-year revenues of between US$ 1.7 billion and US$ 1.8 billion, up from US$ 1.48 billion reported in 2011.

However, executive chairman Robert Toll warned against getting carried away. "We do, however, remain cautious in our optimism as we believe consumer confidence remains fragile and subject to the impact of negative economic and political headlines," he said.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
Sinoboom to give away scissor at ARA Show
Sinoboom North America will be giving away a Sinoboom 1330SE electric scissor lift in celebration of attending its first ARA Show 
IPAF introduces new health & safety category
The Safety Professional membership category is aimed at health and safety or related supervisory roles
Caterpillar announces first ever sustainability officer
Industry heavyweight creates position of chief sustainability and strategy officer as it seeks to increase sustainability
CONNECT WITH THE TEAM
Murray Pollok Managing Editor Tel: +44(0)1505 850 043 E-mail: murray.pollok@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA