Friday
October 24, 2014

No. 1 Luxury Builder Doubles Quarterly Profit

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No. 1 Luxury Builder Doubles Quarterly Profit

Toll Brothers, the nation's largest luxury homebuilder, reported that it has more than doubled its quarterly earnings with the sale of more homes at higher prices during the second quarter ending April 30. The average selling price of its homes surged 22 percent to $706,000 during that time. 

Toll Brothers has outperformed many other builders recently, since it caters to the luxury market, which tends to be less influenced by any rises in mortgage rates. 

"We are in a leveling period in the early stages of the housing recovery, with significant pent-up demand building," says Douglas Yearley, the builder’s chief executive.

Toll Brothers posted a net income of $65.2 million in the second quarter compared to $24.7 million one year earlier. Revenue soared 67 percent to $860.4 million in the second quarter. 

Source: “Toll Brothers Quarterly Profit More Than Doubles,” Reuters (May 28, 2014)

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