Toll Bros Net Slips 67%

Elena
22 Feb, 2007
New York City

Luxury home builder Toll Brothers posted Q1 net income drop of 67% to $54.3 million, or 33 cents a share, down from $163.9 million, or 98 cents last year. The quarterly earnings fell on 19% revenue decline and missed analyst estimate of 29 cents. Revenue fell to $1.09 billion from $1.34 billion.

[R]8:00 AM Toll Brothers posted 67% net income drop in Q1.[/R]
Luxury home builder Toll Brothers Inc. ((TOL)) posted Q1 net income drop of 67% to $54.3 million, or 33 cents a share, down from $163.9 million, or 98 cents last year. The quarterly earnings fell on 19% revenue decline and missed analyst estimate of 29 cents. Revenue fell to $1.09 billion from $1.34 billion. Excluding special charges, the earnings were 72 cents a share, down 27%. Net signed contracts fell 34% in the quarter to a value of $748.7 million. The first-quarter cancellation rate was 29.8%, lower than thet 36.9% in the fourth quarter and the company''s historical average of 7%. For 2007, Toll Bros predicted profit of $1.46 to $1.85 a share on revenue of $4.2 billion to $4.96 billion, in line with expectations.


[R]6:30AM European markets advanced on Thursday on strong insurers.[/R]
European markets were higher on Thursday. In early trade, Frankfurt Xetra Dax added 0.7% to 6,988.01, the CAC 40 in Paris gained 0.7% to 5,731.51 and London FTSE 100 climbed 0.6% to 6,394.1.

Advancers

BASF led advancers in early trade after the German chemicals group posted a 17.3% rise in Q4 core earnings, meeting expectations, thanks to demand growth and the performance of recent acquisitions.

Axa, the second-biggest insurer in Europe, gained 1.9% after posting a forecast-beating 18% rise in full-year net profit thanks to strong performances from global stock markets last year. Allianz, top insurance group in Europe, gained 1.6% after a 57% rise in fourth-quarter profit.

Banks were mostly higher, with National Bank of Greece leading following a better-than-forecast 36% gain in full-year net profit. Swiss food group Nestlé climbed 2.1% as strong growth in its food and beverages business helped it reach a record for annual net profit.

Decliners

Belgium KBC Group fell 2.6% after its 1.9% fall in underlying Q4 net profit did not match expectations on rising costs and loan impairment. The biggest banking group in Norway DnB Nor fell 2.7% despite beating expectations with Q4 earnings as net interest income and commission disappointed.

Oil and metals

Crude oil was virtually unchanged as traders said surge in prices yesterday were not justified because U.S. gasoline supplies may be sufficient to meet summer driving demand. Crude oil for April delivery fell 46 cents, or 0.8%, to $59.61 a barrel on the New York Mercantile Exchange and traded little changed in early trade in London. Brent oil for April settlement fell 48 cents, or 0.8%, to $58.87 a barrel on the ICE Futures exchange in London.

Gold declined in London on speculation that price swings in the metal will discourage demand from jewelers, the biggest buyers of the metal. Gold for immediate delivery declined $2.30, or 0.3%, to $676.55 an ounce. Silver dropped 2 cents to $14.205 an ounce. Palladium was little changed at $344.75 and platinum fell $3.50 to $1,224. Copper rose for a second day in London on speculation that demand from Chinese buyers is gaining. Copper for delivery in three months on the LME advanced $95, or 1.6%, to $5,885 a ton.

Currencies

The dollar advanced, touching its highest against the euro in more than a week, on speculation Federal Reserve members will reiterate the risk of inflation. The dollar rose to $1.3088 against the euro in early trade in London, from $1.3139 yesterday in New York. The dollar also traded at 121.30 yen from 120.93 yesterday, when it had the biggest gain since Dec. 8. The greenback was at $1.9495 against the U.K. pound, from $1.9540 yesterday.