United States construction company, specialized in luxury home builing, Toll Brothers recently announced profits for first quarter as the company records increase in revenues and sales, backlogs and contracts. The construction company recorded net income for fiscal year (1st quarter) of about $0.2 cents per share or $3.4 million, compared to $0.25 cents per share or $40.8 million for the same period in 2010.
This also the case in Europe – construction company Galliford Try from Great Britain also posted profits increase. British home builder recorded a 29 percent adjusted pretax profit increase — 152.9 million pounds or about $248.4 million), due to the rise in housing construction and demand in the country.
A Bloomberg survey stated that the Toll Brothers will lose 16 cents per share — in estimates, some financial analyst projected 8 cent per share loss for the construction company, about half of what Bloomberg projected.
Profits increase from what analyst estimates of about $317.2 million to $334.1 or 570 units, a 3 percent increase. The construction company average home selling price increase by 7 percent to $586,000, but the construction company is expecting a decline on the amount, just within the range of $540,000 and $565,000 for the following months, possibly for the rest of 2011.
The construction company, according to reports, signed net contracts worth $307.2 million and 548 units, for the first quarter of 2011. The company also recorded a backlog of 1,472 units and $825.2 million.
Toll Brothers’ chief executive officer, Douglas C. Yearley, Jr. said, the real estate market is still hard for the construction company and the homebuyers are still cautious. He also added that numerous markets including metro Boston, Texas, New York, and Washington DC — the markets are said to represent 70 percent of its total backlogs.
The housing market is still not generating the positive drive that will create urgency among home buyers, added Yearley.
Shares of the Toll Brothers construction company were up by 3.5 percent at $21.48 in market trading.