by Calculated Risk on 11/08/2005 10:53:00 AM

AP reports: Toll Brothers Cuts 2006 Home Deliveries View; Sees Weakened Demand in Some Markets

Toll Brothers Inc. cut its home deliveries forecast for fiscal 2006 on Tuesday, citing fewer than expected selling communities and weakened demand in several markets. Shares of the luxury home builder tumbled more than 11 percent in morning trading.

Toll Brothers projected home deliveries between 9,500 and 10,200 homes in fiscal year 2006, down from an earlier target of 10,200 to 10,600 homes. In fiscal 2005 it reported 8,769 deliveries.

"The shortage of selling communities, coupled with some softening of demand in a number of markets, negatively impacted our contract results," Toll Brothers said. "It appears we may be entering a period of more moderate home price increases, more typical of the past decade than the past two years."