Toll Brothers posts net loss; sees Q4 revenue below Q3 (Reuters)

(Reuters) - Luxury home builderToll Brothers (TOL.N) swung to a third-quarter net loss, hurt by write-downs and weakened demand in most markets amid the nation's housing slump, and forecast sequentially lower revenue in the fourth quarter on higher costs.

The largest U.S. luxury home builder reported a net loss of $29.3 million, or 18 cents a share, compared with a net profit of $26.5 million, or 16 cents a share, a year earlier.

Excluding write-downs for operating communities, land and land options, and joint ventures, the company earned 35 cents a share.

Total revenue fell 34 percent to $797.7 million.

Analysts on average had expected a loss of 36 cents a share, before special items, on revenue of 765.3 million, according to Reuters Estimates.

Net contracts in the quarter totaled 812 homes, or $469.9 million, which was lower by 27 percent in units and 35 percent in dollars compared with the year-ago period.

In the third quarter, the company had 195 cancellations, the lowest quarterly total in more than two years.

The U.S. housing market has been suffering for almost two years due to tighter credit conditions that have led to surging defaults on risky subprime mortgages, rising foreclosures, excess supply and lower prices. The slump has even pushed some builders into bankruptcy.

Several home builders have also had to mark down the value of their inventories and take charges for walking away from land deals.

The company expects cost of sales in the fourth quarter to be higher as a percentage of revenue than in the third quarter due to higher incentives and slower delivery paces.

The company's stock closed at $24.80 Wednesday on the New York Stock Exchange.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Amitha Rajan)