Toll Brothers: First profit in 3 years

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Homebuilder Toll Brothers made a profit last quarter -- its first in three years. And it largely has Uncle Sam's tax credits to thank for it.

The company said Wednesday that it earned net income of $27.3 million, or 16 cents per diluted share, for the quarter ending July 31. Last year it lost $472.3 million in the same period in 2009.

Chief Executive Douglas Yearley Jr. said that "much of this quarter's profitability was due to tax benefits."

Toll Brothers (TOL) reduced the pre-tax value of $12.5 million in assets, including already-built subdivisions as well as land cleared for future communities.

Analysts had been expecting the company to suffer another loss.

Revenue fell to $454.2 million in quarter, from $461.4 million the prior year.

The company's stock edged up in pre-market trading.

Toll is the first builder to post quarterly results since the April 30 expiration of the $8,000 tax credit, which boosted homebuilders and the housing market.

The company's quarterly announcement follows a dismal home sales report on Tuesday that aroused fears of a double dip in the housing prices and triggered a slump in the stock market.

Existing home sales sank 27.2% in July to a seasonally adjusted annual rate of 3.83 million units, their lowest level in 15 years, according to the National Association of Realtors. Much of the drop was attributed to the end of the homebuyer tax credit.

More bad news for the housing market came out on Wednesday, when the U.S. Commerce Department reported that new home sales plunged in July to their lowest level on record.

New home sales plummeted 12.4% last month to a seasonally adjusted annual rate of 276,000. This was much worse than expected, as economists had forecasted a gain to 334,000. To top of page


Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.23%4.19%
15 yr fixed3.26%3.27%
5/1 ARM3.70%3.38%
30 yr refi4.22%4.18%
15 yr refi3.26%3.26%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,279.74 13.75 0.08%
Nasdaq 4,579.79 -13.64 -0.30%
S&P 500 2,010.40 -0.96 -0.05%
Treasuries 2.59 -0.04 -1.60%
Data as of 12:49pm ET
Company Price Change % Change
Yahoo! Inc 40.93 -1.16 -2.74%
Microsoft Corp 47.52 0.84 1.80%
Bank of America Corp... 16.95 -0.09 -0.53%
Oracle Corp 39.80 -1.75 -4.21%
Facebook Inc 77.91 0.91 1.18%
Data as of Sep 19

Sections

The automaker is recalling Cadillac XTS and Chevrolet Impalas because of a problem with the electronic parking brake arm. More

The Bill and Melinda Gates Foundation has given more money than many western nations. More

It's really good to be Larry Ellison. The Oracle founder is stepping down as CEO, so maybe he'll have more time to enjoy his glamorous life. More

As Occupy Wall Street goes on its debt-abolishing tear, thousands of people across the country are begging them to forgive their loans. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.