Weak demand hurts homebuilder"s profits

Weak demand hurts homebuilder"s profits.
Toll Brothers Inc., the largest U.S. luxury homebuilder, which is currently building five developments in Monmouth and Ocean counties, said third-quarter profit fell 85 percent as the deepening housing slump cut sales, increased cancellations and forced the company to write down property. Net income in the three months ended July 31 declined to $26.5 million, or 16 cents a share, from $174.6 million, or $1.07, a year earlier, the Horsham, Pa.-company said today in a statement. The shares rose as much as 5.2 percent after the results exceeded analysts" estimates. Cancellations jumped to 24 percent in the quarter and Chief Executive Officer Robert Toll said a glut of homes is curbing demand. Five of the largest U.S. homebuilders reported combined losses of $1.85 billion and took charges of $2.9 billion to write down land values and walk away from property options in their most recent quarters.