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Toll Brothers says hefty write-downs on the value of land joint ventures drove the luxury homebuilder to a second-quarter loss, but results topped Wall Street expectations.For the period ended April 30, Horsham, Pa.-based Toll Brothers Inc. has reported a loss of $93.7 million, or 59 cents per share, compared with year-ago profit of $36.7 million, or 22 cents per share. Excluding write-downs of $174.6 million, Toll says it earned $81.3 million, or 49 cents per share, in the latest quarter.
Total revenue fell 30 percent to $818.8 million from $1.17 billion last year.
Analysts surveyed by Thomson Financial expected a loss of 89 cents per share including charges on sales of $818.5 million.
Shares rose 45 cents, more than 2 percent, to $21.41 at the open of trade.
The company said its backlog at the end of the second quarter totaled $2.08 billion, down 50 percent year-over-year.
In the first six months, Toll Brothers lost $189.7 million, or $1.20 per share, which included pretax write-downs of $533.6 million. After-tax write-downs totaled $324.9 million, or $1.98 per share. Excluding write-downs, six-month profits were $138.6 million, or 84 cents per share.
"We believe Congress should jump-start demand for new homes with an initiative that will bring buyers off the sidelines and into the market, and thereby stop the downward spiral of home prices," said Robert I. Toll, chairman and chief executive, in a statement. "Once home prices stabilize, Congress could then more successfully address mortgage issues; however, without stabilization of home prices, trying to address mortgage issues may be difficult at best."
Six-month net contracts totaled 1,576 homes, or $871.5 million, a decline of 41 percent, compared to 2,674 net contracts during the same period last year.
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AP Business Writer Jennifer Malloy in New York
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