Toll Bros. loses $111 million in Q4, but sees hope

HORSHAM, Pa. - Toll Brothers Inc. lost $111.4 million in the fiscal fourth quarter, but the homebuilder is seeing signs of a turnaround in the . The firm's loss of 68 cents a share was largely due to continued write-downs on the value of its land holdings and staff reductions. Excluding charges, the builder almost broke even. In the year-earlier quarter, which included a larger amount of write-downs, Toll lost $78.8 million, or 49 cents a share. Revenue fell 30 percent to $486.6 million from $691.1 million. Analysts had estimated a loss of 46 cents a share on revenue of about $450.1 million. Investors, however, are likely to focus on Toll's 42 percent jump in new sales contracts and a cancellation rate of just 7 percent. The industry has been buoyed by an $8,000 federal for first-time homebuyers, which was extended last month and expanded to include $6,500 for existing homeowners. That was especially good news for Toll, whose luxury homes are marketed to buyers looking to trade up from their existing homes.

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