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Toll Brothers reports $81.8 Million Loss

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Dee Dee

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Colorado
http://biz.yahoo.com/ap/071206/earns_toll_brothers.html

Toll Brothers Reports $81.8M 4Q Loss in Housing Downturn; Calls 2007 Worst Year in 4 Decades


PHILADELPHIA (AP) -- Toll Brothers Inc., the nation's largest builder of luxury homes, said Thursday it swung to a loss for its fourth fiscal quarter during what the company calls the worst housing downturn in decades. It is the first quarterly loss recorded by the company in 21 years.
 

Austin

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Virginia
This area is economically depressed due to lost of a number of old anchor industries like textiles, tobacco, etc.There are huge financial incentives to a company moving here.
The largest new employer makes all of the cabinets for Toll brothers. They opened a huge new plant and moved all operations here from PA. About the time they opened the bottom fell out. I was talking with a Realtor yesterday and he said they are laying off and even worse. The quality of the work force here resulted in trashing half a million dollars in work not up to their standards. He says many have been sent home. Between throw outs and huge cuts in demand they have a problem.
 

murray stroupe

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Tennessee
Re ;40 year record

Robert Toll said 2007 was the most challenging of the 40 years;
''1974 was perhaps rougher'', but only lasted a year.

Contracts signed dipped only 33%;
probably need some more cabinets before its over.And that's another source of income;
lowest price-highest price home builders here, usually subcontract the cabinet manufacturing to some one else.
 

Greg Bell

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Louisiana
Not a problem.Bush and Clinton will just "Freeze" all the sales contracts after signing.Poof , problem solved...Quick , Buy some Beans and Ammo..
 

Karl

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Arizona
Then again the quality of Toll Bro houses has also declined. Yep the government is on it's way to help.' Holy crap we're going to need HELP!!!
 

Restrain

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Florida
Toll Brothers was always overpriced for its product. When I was fee appraising, I could go to the competing builder and beat their prices by 15%. Never could get a new Toll Brothers home to meet the contract price.
 

Terrel L. Shields

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May 2, 2002
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Arkansas
''1974 was perhaps rougher'', but only lasted a year.
remember it well. First Oil shock. Some people say that the price of gas and oil is not relevant in this day and time. I say it is. Check the petroleum spikes of 1973, 1979, 1981, and 2005-present and see what happened the next year or two to building markets.
 

murray stroupe

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Tennessee
Re; oil shock & cabinet shock

Toll Brothers was always overpriced for its product. When I was fee appraising, I could go to the competing builder and beat their prices by 15%. Never could get a new Toll Brothers home to meet the contract price.
==========================
That's a Toll cabinet shock also;
half a million of inferior cabinet product trashed.

Probably not in direct competition with Toll Bros;
just observed a San Antonio contractor put in mismatched cabinets,
looked [email protected] the end of the week, because he had them painted.Oil based paint never has spiked as much as oil.
 
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