Earnings up, deliveries down at Toll Brothers
Luxury home builder Toll Brothers reported mixed results for its third fiscal quarter, with profits up but revenues down as cancellations increased and orders for new homes slowed.
Net earnings for the third quarter, which ended July 31, were $42.1 million, a 54% increase, but they included a one-time tax benefit of $38.2 million. This compares with net income of $27.3 million in the same period a year ago, which included a $26.5 million tax benefit.
Third-quarter revenues and home-building deliveries of $394.3 million and 693 units decreased 13% in dollars and 14% in units, compared with fiscal year 2010’s third-quarter results.
Signed contracts in the third quarter rose 2%, to $406.7 million and 713 units, compared with fiscal year 2010’s third-quarter signed contracts. The company’s contract cancellation rate was 7.4% in the third quarter of fiscal year 2011, compared with 6.2% in fiscal year 2010’s third quarter.
Toll Brothers serves move-up, empty-nester, active-adult and second-home buyers and operates in 19 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas and Virginia.
LP to curtail OSB production
Louisiana-Pacific Corp. has announced that its Dawson Creek, B.C., mill will curtail production of oriented strand board (OSB) beginning Aug. 25. The mill will continue to manufacture LP TechShield Radiant Barrier Sheathing to support its customers’ needs in West Coast markets.
The Dawson Creek OSB mill was constructed in 1987 and currently employs 114 people. After winterization and preparations for press shutdown are completed, about 26 employees will be retained to operate the TechShield Radiant Barrier line, and maintain the plant and equipment.
In a prepared statement, Jeff Wagner, the company executive VP of OSB, said: “We firmly believe that we will resume OSB press production at the mill as housing starts to improve. We are maintaining our wood license and mill equipment to be ready to resume press production when housing activity permits."
Headquartered in Nashville, Tenn., LP is a leading manufacturer of engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction
Sales of new homes slip in July
Sales of new single-family houses in July 2011 were at a seasonally adjusted annual rate of 298,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 0.7% below the revised June rate of 300,000, but is 6.8% above the July 2010 estimate of 279,000.
The median sales price of new houses sold in July 2011 was $222,000, down from $236,800 in June. The average sales price increased slightly to $273,300.
The seasonally adjusted estimate of new houses for sale at the end of July was 165,000. This represents a supply of 6.6 months at the current sales rate.