Reply #14: Toll Brothers cuts fiscal 2006 home delivery view

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-07T124129Z_01_N0713256_RTRIDST_0_CONSTRUCTION-TOLL-OUTLOOK-UPDATE-2.XML

NEW YORK, Feb 7 (Reuters) - Luxury home builder Toll Brothers Inc. (TOL.N: Quote, Profile, Research) on Tuesday further reduced its forecast for home sales in fiscal 2006, as the new orders for the first quarter fell 29 percent on slumping demand.

Toll also said delays in obtaining inspections, certificates of occupancy and utility hookups forced it to cut its outlook to sales of 9,200 and 9,900 homes during the fiscal year ending on Oct. 31, from a previously lowered view of 9,500 and 10,200 homes.

New orders during the quarter fell to 1,572 from 2,209, while the value of the contracts declined 21 percent to $1.16 billion.

"We believe the sharper decline in orders relative to peers is a function of the more pronounced slowing at Toll's high price point and Toll's market exposure," Banc of America Securities analyst Daniel Oppenheim wrote in a research note.

California, Phoenix, Arizona and Washington D.C. are Toll's largest markets, he said.

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(edited to add info and updated link)