Toll Brothers Posts Q3 Loss On Mark Downs Of Land, Unsold Homes

September 4, 2008 4:18 p.m. EST

Horsham, PA (AHN) - Toll Brothers Inc. announced Thursday a third quarter loss of $29.3 million as revenue slumped and large write-downs ate up profits.

The homebuilder posted a third quarter loss of 18 cents per share, compared with a profit or $26.5 million or 16 cents a share in the same period a year ago.

Excluding the one-time charges, totaling $84.3 million, Toll had a third quarter profit of $55 million or 35 cents a share, roughly in-line with analyst expectations.

Third quarter revenue fell 34 percent to $797.7 million from $1.21 billion last year.

Revenue results were sluggish due to a 40 percent decline in contract revenue.

Toll did improve its cash position, ending the third quarter with $1.5 billion in cash reserves on the books.

The only fourth quarter guidance offered by the company was related to home deliveries. Toll expects to deliver 850 to 1,050 homes with an average price of $650,000 in the fourth quarter.

Shares of Toll rallied off lows on Thursday to finish 0.9 percent higher at $25.04.