Housing Crash Pushes Home Builder Into Red

Toll Brothers has its first losing quarter in 21 years

By Kevin Spak, Newser Staff

Posted Dec 6, 2007 7:49 AM CST

(Newser) – Toll Brothers, the country's largest luxury homebuilder, today reported its first quarterly loss in 21 years, Bloomberg reports, as the housing slump drove away buyers and forced the company to write down land. “Demand has just fallen off the table,” one analyst explains. Toll lost $81.8 million, or $0.52 per share, but the shares actually rose 1.7%, because analysts had predicted losses of $0.71 per share.

Chairman Robert Toll blamed “chatter about housing” for scaring away buyers. “As soon as that fear leaves the market we’ll be back on top,” he predicted. Toll took $314.9 million in writedowns, less than the $450 million the company predicted Nov. 8. Shares have fallen 36% this year, but until now, the company hadn’t broken its streak of 85 consecutive profitable quarters.

An unfinished interior of a home in a Toll Brothers development in Oaks, Pa. is shown in this Dec. 5, 2006 file photo. Toll Brothers Inc., the nation's largest builder of luxury homes, said today that... (Associated Press)

A Toll Brothers Inc. home is shown under construction in Oaks, Pa., in this Aug. 22, 2006, file photo. Toll Brothers Inc., the nation's largest builder of luxury homes, on Thursday, Nov. 8, 2007 said... (Associated Press)

A home is offered for sale at the Toll Brothers Country Club Estates luxury housing development in Moorpark, Calif., Wednesday, Aug. 22, 2007. (AP Photo/Reed Saxon) (Associated Press)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Nov. Housing Starts Fall 3.7%

And permits for new homes fall to 14-year low

(NEWSER) - Housing starts fell less than expected in November, but fall they did, extending the worst housing slump since 1991. Starts fell 3.7% and, according to one analyst, probably won’t turn around until the third quarter of next year. Permits issued, which give a picture of future construction, fell to a 14-year low, Bloomberg reports. More»

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

(NEWSER) - The $26 billion mortgage settlement announced yesterday will be a boon for some—but the terms of the deal leave many homeowners out in the cold. Recipients of loans owned by the Federal Housing Administration, for instance, won't directly benefit from the settlement; nor will those with mortgages held by private investors, the New York Times reports. Millions of Fannie Mae and Freddie Mac loans—about half of America's mortgages—aren't part of the plan, either. More»

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

(NEWSER) - America's five biggest banks have hammered out a $26 billion settlement for their role in causing the mortgage meltdown, reports the Wall Street Journal . The deal—the biggest of its kind since 1998's $206 billion settlement with the tobacco industry—was hammered out during almost a year of negotiations between the banks and all 50 state attorneys general, reports the New York Times . The money will go to some 2 million homeowners affected by the crisis. More»

Downturn Slams Gen-Xers; Boomers, Not So Much

Housing prices are the real culprit

(NEWSER) - The recession is hurting most of us, but Gen X has taken the brunt of it—thanks to housing prices that fell off a cliff 5 years ago and are still tumbling. Consider the 30-year-old Gen-Xer who bought a house in 2006 for $250,000. That value has now dropped by a third, hurting any chance of a comfortable retirement. Compare that to a Baby Boomer of the same age who bought a house in 1991 for $100,000: Sure, it's lost value in the downturn, but its median selling price is still $170,000. More»

11.1M Households Underwater

Number jumps to 23.1% at end of 2010, more likely on way

(NEWSER) - Just when it looked like the housing market might be treading water, more American homes slipped underwater at the end of 2010, reports the AP. Now 23.1% of all mortgages, or 11.1 million, outweigh the value of the house they secure—up from 22.5% in the previous quarter. The number of underwater mortgages had fallen in each of the previous three quarters, though the AP cheerily notes that was because many had gone into foreclosure. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Housing Crash Pushes Home Builder Into Red

Toll Brothers has its first losing quarter in 21 years

OTHER STORIES ON OUR RADAR

housing market • earnings reports • Toll Brothers • housing crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Nov. Housing Starts Fall 3.7%

And permits for new homes fall to 14-year low

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Downturn Slams Gen-Xers; Boomers, Not So Much

Housing prices are the real culprit

11.1M Households Underwater

Number jumps to 23.1% at end of 2010, more likely on way

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Housing Crash Pushes Home Builder Into Red

Toll Brothers has its first losing quarter in 21 years

Bookmark & Share

OTHER STORIES ON OUR RADAR

housing market • earnings reports • Toll Brothers • housing crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Nov. Housing Starts Fall 3.7%

And permits for new homes fall to 14-year low

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Downturn Slams Gen-Xers; Boomers, Not So Much

Housing prices are the real culprit

11.1M Households Underwater

Number jumps to 23.1% at end of 2010, more likely on way

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?