Luxury homebuilder Toll Brothers ( TOL) said its third-quarter revenue will be slightly lower than a year ago but still above analysts' estimates. The company also reported record new contracts and backlog.

The company preannounced a 1% drop in home building revenue to $565 million, or 1,093 homes, from $573.5 million, 1,129 homes, in the year-ago quarter. Toll Brothers blamed the decline on weaker demand in late summer 2001 and immediately following the Sept. 11 attacks.

Toll Brothers also reported $11 million in revenue from land sales, up from $2.8 million a year ago.

The results still easily topped estimates, as analysts polled by Thomson Financial/First Call had been expecting total revenue for the quarter of $508.30 million.

In addition, the company said signed contracts were up 30% to $704 million, while third-quarter backlog was up 21% to record levels of $1.90 billion.

In a statement, Toll Brothers said, "Our record performance, and the recent strong results of many other major builders, suggest that the industry's health remains robust. Despite the turmoil in the capital markets, we are still benefiting from strong demand among affluent move-up, empty-nester and active-adult buyers."

Shares of Toll Brothers closed at $20.52 before the news Monday.

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