Cancellations Thump Toll Brothers

Luxury-home builder Toll Brothers(TOL Quote) said revenue fell 36% in its latest quarter, as cancellations of home contracts continue to plague the company.

Toll reported preliminary revenue of $1.17 billion for its fiscal fourth quarter, down from $1.81 billion a year earlier. New contracts for the quarter ended Oct. 31 fell 35% to 656 units, including the impact of cancellations.

"We continue to believe that excess supply created by cancellations, speculative buyers, and overly ambitious builders; customer concerns about selling their existing homes; and a general lack of confidence are the primary impediments to our market's recovery," Robert Toll, the company's chairman and CEO, said in a statement. ...