Toll Bros. Sees Slower Growth
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Toll Bros. Inc., the largest U.S. builder of luxury homes, said 2006 earnings might increase at the slowest pace in four years after fiscal fourth-quarter profit gained 72% on demand from affluent buyers.
The Horsham, Pa.-based company said Thursday that earnings next year would grow 0.2% to 10%, the slowest pace since 5% in 2002. In August, Toll had said profit would grow about 20% in 2006.
“We’re seeing a moderation” in demand, Chief Financial Officer Joel Rassman said.
Selling more expensive homes helped the company report net income of $310 million, or $1.84 a share, in the three months ended Oct. 31.
Shares of the builder have dropped 39% since reaching a record in July as mortgage rates rise. Toll’s shares rose $1.25 to $35.55 on Thursday.
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