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.