Toll Brothers Sounds Off on 'Ceaseless' Recession Talk
Endless recession talk is apparently cramping Toll Brothers' profits. According to CEO Robert Toll in the company's first-quarter earnings release: "Ceaseless talk of a recession continues to dampen the mood of consumers, in general, whether or not a recession actually occurs." He added, "For home buyers, we believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines." Toll Brothers, the country's largest luxury home builder, posted a loss of $96 million, or 61 cents a share, in its fiscal first quarter.
Are we too gloomy on the economy? Money manager and Forbes columnist Ken Fisher might agree with Toll.
Tags: economy | recession | housing market
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Reader Comments
Blah,Blah,Blah...
No, predatory lending, dishonest home buyers, decreased comsumer spending, and lax accounting are eating into your profits.
agree
have to agree with you. and shotty constuctin practices, and toll is suppose to be a luxury home builder so why would this even touch him.
Toll (Greedy) Brothers
Let us add overbuilding by every developer and his brother, plus the considerable inflation, denied by the government, but much felt by the wage earner. Add in the greed-driven hyper increase of new housing for the final kiss of death. That the developers unjustly increased selling prices is proven by the huge price drops for recent new homes, often even larger and for much less than the same home built adjacently only last year. These developers are not selling these homes at a loss, oly at less profit because they cannot currently get more. Everything has a cost, even greed.
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