Taylor Woodrow Share Discussion Threads

[nutterd] 28/6/2007 12:29

no time frame. rolling bet with city index.

[spob] 28/6/2007 11:11

2500 a point over what time frame ?

hours ?

days ?

weeks ?

months ?

[nutterd] 28/6/2007 06:27

I have gone 2500 a point long. The US market will sort itself out. The economy and demographics in fact point to a long term shortage of housing. If you save £70M a year by merger with WMPY that is worth at least £1Bn on the value of the combined group. This pullback from the highs is entirely unjustified and both companies are a steal.

[8gamsby] 27/6/2007 23:24

USA picked up wednesday housebuilders that is ,might see some blue tomorrow.

[8gamsby] 27/6/2007 15:37

The merger valuation will be nearer £4 billion than 5, get USA sorted as it surely will soon and then see them grow.I believe that in PETER REDFEARN they have a top man with youth on his side.Americans are just like us the vast majority want to own their properties. All down to interest rates.

[markpun] 27/6/2007 15:23

Taylor Wimpey cuts jobs
an ADVFN competitor
Taylor Woodrow and George Wimpey today confirmed that they will cut just over 700 jobs.

The new group will close four of their 38 UK regional offices as they complete their £5bn merger to become the UK's biggest housebuilder - to be called Taylor Wimpey.

In a combined conference call this morning to update on first half trading, the housebuilders said they will also close the Taylor Woodrow UK corporate office in Solihull and open a new combined corporate office in London.

'We are cutting jobs at just over the 5% level we said three months ago when we announced the deal,' Wimpey CEO, Peter Redfern, said. 'After which we will be left with a total of around 13,000 employees in the UK and the US.'

Synergies for the deal are expected to be around £70m by the end of 2008, but the companies said they would provide full details after they announce the completion of the merger next week.

'Everyone will know their exact role by next Monday when the deal completes,' Redfern said. 'And this speed will give us an advantageous headstart and increase our ability to drive synergies out of our two businesses and the underlying improvements in, for example, land buying and bill costs.'

The combined group's executive roles, already announced when the deal was presented, include Peter Redfern as CEO and Peter Johnson as finance director.

Johnson, currently Taylor Woodrow's finance director, highlighted that both businesses expect to see quite a good material margin improvement on the first half of last year. 'That has been the key challenge for both businesses and very much where our focus has been in terms of operational improvement,' he said.

The combined group will have a UK landbank of over 92,000 plots, and aims to combine Taylor Woodrow's 'strategic land development skills' and George Wimpey's 'more efficient cost base and business structure'.

Regarding the Office of Fair Trading's (OFT) impending review into potential competition and consumer concerns within the UK housebuilding industry, Johnson said the companies were not particularly nervous about the investigation, but could do without the 'distraction' it inevitably brings. 'It is mildly frustrating to have to go through the same questions we have already covered, for instance during the Barker review,' he said.

'If you take the main question on whether the housebuilders landbank, we know we don't,' Johnson said. 'We don't have sites for which we have planning on where we could be building and selling on but we are not.'

'We of course need a landbank because we have a pipeline of sites, and that includes sites at all different stages of the planning process', the finance direector added.

Johnson said he hoped the review buries forever the question of whether the industry landbanks and focuses people's attention on the fact that the planning system has 'huge and unnecessary' complexities that bring about 'unnecessary' delays.

Updating the market on trading for both companies, Redfern said the first half of the year in the UK housing market was solid. 'We were able to achieve some price rises, but particularly outside London (the market) remains pretty sensible,' he said.

'We don't see the market changing dramatically in the second half but it will be slower, as recent interest rate rises are impacting on customers' borrowing costs and overall confidence,' the CEO added.

Regarding the US, Redfern said both businesses continued to see very difficult trading conditions with oversupply and a very competitive marketplace, and don't expect these tough conditions to change for the rest of the year. 'Credit availability is actually lower than six months ago and customers are well aware of constraints on borrowing,' he added.

Both Taylor Woodrow and Wimpey issued trading statements today ahead of their first half results. Taylor Woodrow said its UK housing order book at week 24 was ahead by more than 10% year-on-year, both in value and volume, while Wimpey saw its UK forward order book around 5% ahead in volume terms, with gross margins showing good progress.

Reacting to both the updates and the merger plans, Barclays said it remains cautious on the proposed merger. 'We think any benefits are counterbalanced by the premium rating and would remind investors that both businesses, in addition to their US exposure, were low-quality franchises,' the broker said in a note. 'This is reflected in their low margins and expensive land banks.'

Meanwhile, Investec said it expects further bad news in the short term and sees risk on the downside. 'We can only justify a Hold and see better value elsewhere in the sector, even when the combined group is created,' the broker added.

[markpun] 27/6/2007 06:12

Just read again, mixed and don't know what to make of it. Not a complete disaster?

[markpun] 27/6/2007 06:07

I hope this RNS will bring a rise in SP?


Taylor Woodrow PLC
27 June 2007


27 June 2007

Taylor Woodrow plc
Pre-close Trading Statement


Taylor Woodrow plc is issuing the following pre-close trading statement prior to
its half year period end on 30 June 2007 and ahead of the expected completion of
the Company's proposed merger with George Wimpey Plc on 3 July 2007.


Merger of Taylor Woodrow plc and George Wimpey Plc

The merger of Taylor Woodrow plc and George Wimpey Plc is an outstanding
opportunity to create the UK's largest housebuilding company. The Board of
Taylor Woodrow is delighted that shareholders of both companies have given the
proposal their overwhelming support.

Since the announcement of the merger on 26 March 2007, detailed integration work
has been carried out across all divisions. As a result the new management teams
and reporting structures for the combined businesses are agreed and will take
effect immediately upon completion.


UK Housing

The UK housing market has remained stable during the first half of the year,
with good buyer demand and customer confidence. Gross and operating margins for
the UK housing business are showing improvement over the same period in 2006.

Net reservations are in line with those achieved in the equivalent period of
2006. Site openings are on track to deliver the anticipated 5 per cent. increase
in average sites over the year. We expect completions in the first half to be
similar to the first half of 2006.

The order book at week 24 is ahead by over 10 per cent. year on year, both by
value and volume.

The owned short term landbank is similar to that of last year. Further
investment to increase the landbank is scheduled for the second half of the
current year.


North America Housing

Our markets in Texas and Canada have continued to be healthy. However the
housing markets in Arizona, California and Florida have remained challenging.
Buyer confidence is low due to continuing concern about interest rates and the
high level of housing stock.

Sales rates in North America overall have declined although there is
considerable variation across our key markets. Market weakness persists in
California and particularly Florida, with increased levels of sales incentives
required in both markets.

We expect volumes in the first half of 2007 to be below the levels achieved in
the first half of 2006. Due to the pressure on pricing driven by market
conditions, we anticipate margins being significantly below last year excluding
the effect of the previously announced exceptional items.

The order book at the end of week 24 is around 45 per cent. lower in sterling
value terms than the equivalent position in 2006.

We continue to remain very selective about land acquisition in North America. As
a consequence, the landbank at the half year will be below that at the year end.


Spain & Gibraltar Housing

The Mallorca and Gibraltar markets continue to be stable. Markets in mainland
Spain have slowed significantly due to overcapacity and higher interest rates
which have dampened demand from British buyers. Operating profits in the first
half will be significantly lower than the same period in 2006. The major
contributory factor to this is a significant land sale in the same period last
year.


Construction

The Construction business continues to perform in line with expectations.
Contract wins during the first half include upgrading the Docklands Light
Railway in London to accommodate longer trains.


Outlook

In the UK, we currently anticipate less buoyant market conditions in the second
half of the year, due to the impact of recent interest rate changes and the
effect of these on customer confidence. However we are confident that progress
on our profit enhancement plans in the UK will continue to improve underlying
performance.

In North America short term market conditions remain difficult to predict. The
focus of the business remains on managing costs and maintaining a steady sales
rate.

The Board remains confident that the continuing improvement in our UK
performance, as well as our ability to recover strongly from the difficult US
trading conditions over the next two to three years, will deliver significant
value to our shareholders. This value will be enhanced further by the strength
of the combined Taylor Wimpey business in both key markets.

[markpun] 27/6/2007 06:03

Morning Folks,


In the housebuilding sector, Taylor Woodrow was marked 1 per cent lower at 378¼p on concerns that today's trading update could disappoint and that the company could announce further write-downs on the value of its US land bank. Berkeley Homes eased 1 per cent to £17.77.

[ed 123] 26/6/2007 22:32

Agree it looks like another down day tomorrow. One day this will bounce strongly.

[8gamsby] 26/6/2007 18:41

More of the same i think

[markpun] 26/6/2007 15:53

Nothing changes, another down day so what can we poor folks expect tomorrow?

[markpun] 26/6/2007 06:41

"Bridgewell repeats its overweigth recommendation on the stock after an upbeat trading update.
Evolution says buy up to 1660p and adds: 'With site visitors holding up well and low cancellation rates, it is clear the new homes market remains active. Persimmon is a top performer in its markets and has confirmed a trend in activity that should bring through the forecast profit growth for 2007. The group reports little direct impact of increased interest rates thus far"

[markpun] 26/6/2007 06:35

Morning Folks,

Home builders should now be great value?


Persimmon

Yesterday's update from Britain's biggest housebuilder was silent on the issue that dominates its sector: consolidation. Persimmon took a close look at George Wimpey and Taylor Woodrow, whose imminent merger will create a combine that leapfrogs its stock market value and sells more than 21,000 UK homes each year. During the first half, Persimmon completed on 8,000 units, a decline that Mike Farley, chief executive, put down to delays in obtaining detailed planning permission. Those extra sites are now open and Mr Farley insists that, notwithstanding recent interest-rate rises, Persimmon is on track to sell about 17,500 homes this year, a 5.4 per cent rise on 2006.

Future sales potential explains why Persimmon need not gatecrash the tie-up of Taylor and Wimpey, which are still struggling with their operations in the United States. Persimmon continues to profit in the UK from spending money on land that it can turn profitably into homes without needing acquisitions. Persimmon's operating margins have risen to 20.5 per cent, from 19.9 per cent a year ago, against 15 per cent for Taylor and Wimpey. Over the past six months, it has also increased its strategic land bank to 82,000 plots and "converted" 5,000 into ready-to-build sites, a process that ensures that margins stay higher when the homes are sold. Last week's OFT inquiry may have hurt sentiment, but if it speeds the planning process it can only help. At £11.90, a low for the year, or 7.4 times 2008 forecasts, the shares look oversold. Hold on.

[8gamsby] 25/6/2007 16:00

Thought we were going to finish in the blue today

[markpun] 25/6/2007 14:14

Sorry Folks,

This is what I intended to post and not the above.....


Existing Home Sales, Prices Decline
By JEFF BATER
June 25, 2007 10:04 a.m.

WASHINGTON -- Existing-home sales dipped during May to their lowest level in nearly four years, while inventories climbed and prices fell a 10th straight time.

Home resales fell to a 5.99 million annual rate, a 0.3% decrease from April's revised 6.01 million annual pace, the National Association of Realtors said Monday. April's rate was originally estimated at 5.99 million.

The median home price was $223,700 in May, down 2.1% from $228,500 in May 2006. The median price in April this year was $219,800. The 2.1% drop marked the 10th consecutive year-over-year price decline.

The May resales level of 5.99 million was in line with Wall Street expectations. It was the lowest pace of demand since 5.94 million in June 2003.

NAR economist Lawrence Yun said would-be buyers appear to be waiting for more signs of stability. "The market is underperforming when you consider positive fundamentals such as the strength of job creation, economic growth, favorable mortgage interest rates and flat home prices," Mr. Yun said.

Some private analysts think the housing slump will keep restraining the economy. Builders broke ground in May at a lower rate than the month before, confirming their loss of confidence in a market bloated with inventory. The government reported last week May housing starts fell 2.1%, the first drop in four months. The lifeless housing market has reduced economic growth for six consecutive quarters, and a bulging supply of unsold homes suggest further drag. Another thorn in the side of the industry is the subprime loan market mess. Lenders have tightened credit -- and might do so further amid evidence that the outlook for securities backed by the riskiest subprime loans made last year has deteriorated.

The average 30-year mortgage rate was 6.26% in May, up from 6.18% in April, according to Freddie Mac.

Inventories of homes rose 5.0% at the end of May to 4.43 million available for sale, which represented an 8.9-month supply at the current sales pace. There was an 8.4-month supply at the end of April, which was unrevised from a previous estimate.

Regionally, existing-home sales were mixed. Sales rose 0.7% in the Midwest and 5.8% in the Northeast. Demand fell 0.8% in the West and 3.4% in the South.

Write to Jeff Bater at [e-mail]

[markpun] 25/6/2007 14:08

In Line, is the worst now behind us?


Home Resales in U.S. Probably Declined to Four-Year Low in May

By Shobhana Chandra

June 25 (Bloomberg) -- Home resales dropped in the U.S. last month as demand remained near a four-year low, reinforcing concerns about a protracted housing slump, economists said before an industry report today.

The National Association of Realtors may report home resales fell 0.3 percent to an annual rate of 5.97 million, the lowest since June 2003, according to the median forecast of 55 economists in a Bloomberg News survey.

Weakening demand for existing homes, along with a decline in construction starts on new homes reported last week, make the housing market the biggest threat to economic growth, economists said. A jump in mortgage rates this month will further discourage buyers, leaving a glut of properties on the market.

``We are a long way from any rebound in housing,'' said Mike Englund, chief economist at Action Economics LLC in Boulder, Colorado. ``Surging mortgage rates will likely extend the housing sector weakness'' through the third quarter.

The Realtors group will release existing home sales figures at 10 a.m. in Washington. Estimates in the Bloomberg survey ranged from 5.75 million to 6.15 million.

New home sales, which economists consider a more timely barometer of the market, are set to be released later this week and may show a decline for May after jumping in April by the most in 14 years, according to the median forecast in a Bloomberg survey.

Monthly figures on home resales are compiled from contract closings and may reflect sales agreed upon weeks or months earlier, while new home sales are recorded when a contract is signed. Sales of existing homes account for about 85 percent of the U.S. housing market, and new home sales make up the rest.

Subprime Defaults

Rising defaults among subprime mortgage borrowers, people with poor or scant credit histories, are hampering a recovery in housing. At the same time, mortgage rates near an 11-month high make borrowing more expensive, even for those with good credit.

The number of Americans who may lose their homes because of late mortgage payments rose to a record in the first quarter, the Mortgage Bankers Association said this month. Subprime loans going into default rose to a five-year high, and prime loans entering foreclosure also surged to a record.

The housing slowdown ``now appears likely to remain a drag on economic growth for somewhat longer than previously expected,'' Fed Chairman Ben S. Bernanke said at a conference in Cape Town, South Africa, this month.

`Moderate' Growth

Still, Bernanke projects a ``moderate'' pace of growth since the housing recession isn't spilling over into other parts of the economy.

``The housing market is likely to find a bottom some time this year and no longer be a drag on top-line growth,'' Fed Bank of Richmond President Jeffrey Lacker said in a speech in Frederick, Maryland, on June 6.

Builders continue to struggle. Rising interest rates and surging delinquencies pushed down confidence among homebuilders this month to the lowest since February 1991, the National Association of Home Builders/Wells Fargo index showed last week.

Hovnanian Enterprises Inc., New Jersey's largest homebuilder, said the spring home-selling season was marred by rising cancellations in April and slow sales that continued into May.

``The nationwide housing market is quite sluggish,'' Ara Hovnanian, the Red Bank, New Jersey-based builder's chief executive officer, said in an interview June 18. ``It's likely to stay a challenging environment for a little while.''

Builders broke ground on fewer new houses in May, while an increase in building permits pointed to a better outlook for future construction, the Commerce Department reported June 19.

Housing accounts for about 23 percent of the U.S. economy, when taking into account purchases of furniture, appliances and items for new homes, according to the Joint Center for Housing Studies at Harvard University in Cambridge, Massachusetts.

[markpun] 25/6/2007 08:11

Judge,

The market certainly does not agree with that statement.

[markpun] 25/6/2007 08:00

Housebuilder Persimmon reports sales of 8,000 units in the first half, down slightly from 8,226 in the same period in 2006. Total interim sales revenue will be £1.5bn with margins higher than last year. Expected forward sales are £950 for the second half versus £882m a year ago. " This puts us in a very strong position to achieve our full year expectations," it said.

[markpun] 25/6/2007 07:53

Typical pattern, just befor 0900hrs share price takes a dive. Surely Homebuilders are now t value.

[markpun] 25/6/2007 07:51

I would have thought that with PSNs profitability/resilience TWOD/WMPY would be up and sellers by now would have dried up?

[markpun] 25/6/2007 06:29

Morning Folks,

This is interesting, I hope TWOD numbers will be equally impressive with the merger?


Persimmon Profitability Widens Following Westbury Integration

By Sophie Kernon

June 25 (Bloomberg) -- Persimmon Plc, Britain's biggest homebuilder by market value, said profitability gained in the first half following the integration of Westbury Plc.

Operating profit in the six months through June will be equivalent to 20.5 percent of sales, compared with 19.9 percent a year earlier, the York, northern England-based company said today in a Regulatory News Service statement.

Revenue will be about 1.5 billion pounds ($3 billion), with about 8,000 homes sold, the builder said. It didn't specify whether the numbers were higher or lower than a year earlier. Forward sales for the second half will be about 950 million pounds, a gain of 7.7 percent.

``Customer confidence remains good, and as a result the market has continued to be resilient,'' Persimmon said in the statement. ``In the absence of any major change to the U.K. economy we expect this situation to continue.''

Four interest rate rises by the Bank of England since August have rendered price gains ``moderate,'' the company said. The acquisition of Westbury for 643 million pounds in November 2005 added new sites and boosted sales of family homes.

To contact the reporter on this story: Sophie Kernon in London at [e-mail] .

[8gamsby] 24/6/2007 19:12

Hope its not another WEEK to batten down the hatches.Trading update wednesday,start trading in TAYLOR/WIMPEY 3JULY.Onwards and upwards.