Toll Brothers, Inc. has announced results for earnings, revenues, contracts and backlog for its first quarter ended January 31, 2011.

The Company reported FY 2011 first quarter net income of $3.4 million, or $0.02 per share diluted, compared to a FY 2010 first quarter net loss of $40.8 million, or $0.25 per share diluted. FY 2011’s first quarter included a net tax benefit of $20.4 million, compared to a $16.0 million net tax benefit in FY 2010’s first quarter.

“The market is still tough; the home buyer is still wary. Although our customers recognize that this is perhaps the best time to buy in many years, so far the market is not generating the positive momentum that creates urgency among buyers,” says Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer. “In this environment, we are pleased to have achieved modest pre-tax profitability on a pre-write-down basis for our third consecutive quarter. In addition, our contracts per community were the highest for a first quarter since FY 2007.”

FY 2011’s first quarter revenues and home building deliveries of $334.1 million and 570 units rose 2% in dollars and declined 4% in units compared to FY 2010’s first quarter results. FY 2011’s first quarter average delivery price of $586,000 was 7% higher than FY 2010’s same period average price.

Toll Brothers attributes the lowest cancellation rate in recent years to its Q1 success.