Luxury-Home Bulder Toll Brothers Says 1Q Profit Down 67%

[Matthew]

Luxury-Home Bulder Toll Brothers Says 1Q Profit Down 67 Percent; CEO Says No Upturn Yet

PHILADELPHIA (AP) -- Luxury-home builder Toll Brothers Inc. said Thursday its first-quarter profit dropped 67 percent due to hefty writedowns and other costs, and Chief Executive Robert Toll said many markets were still soft.

There are too many soft markets at this stage of the selling season to call a general upturn in the new home market. Demand varies greatly from week to week in individual markets," Toll said in a conference call with analysts.

"We're a little more disappointed than two weeks ago" when the company gave its last update, he added. "For President's Day weekend we had good sales, but we didn't have anywhere near the bump up that we normally see. That's disappointing."

Alex Barron, an analyst with JMP Securities in San Francisco, said he wasn't surprised that Toll's comments have taken a more sober tone.

"Now, he's sounding a bit more concerned and depressed," he said. "You can't have five years of a good time and fix everything in a few quarters."

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