Friday, October 30, 2009

Business Times: JLL Q3 net income rises on cost cutting

October 29, 2009
JLL Q3 net income rises on cost cutting

(NEW YORK) Jones Lang LaSalle Inc, one of the world's largest real estate service companies, said that third-quarter net income rose 33 per cent, chiefly from cost cutting. 

The company on Tuesday posted a net profit of US$20 million, or 46 US cents per share, compared with US$15 million, or 43 US cents per share, in the year-ago quarter. 

If not for US$4 million of restructuring charges and US$4 million of non-cash co-investment charges, the Chicago-based company would have earned US$27 million, or 61 US cents per share. 

Third-quarter revenue fell 12 per cent US$595 million. 

Analysts had expected the company to post a profit of 59 US cents a share on US$610.56 million of revenue, according to Thomson Reuters. 

Last week, the company issued a report saying that the worst of the global commercial property meltdown was over, although US commercial property continued to struggle under the weight of weak corporate demand, concerns about the size of potential loan losses and worries over the willingness of lenders to recognise asset value declines. Asia's real estate market was leading the rebound. 

'While real estate fundamentals remain generally weak, we see initial signs of recovery in some markets and industry sectors, and our focus remains on growing market share while providing the superior service that our clients have come to expect,' chief executive Colin Dyer said in a statement. 

In its Europe-Middle East-Asia division, revenue fell 26 per cent to US$154 million. It fell 6 per cent in the Americas region to US$239 million, and inched up 2.3 per cent to US$136 million in the Asia-Pacific region. 

The results were issued after the close of the market when Jones Lang LaSalle shares closed up eight US cents, less than one per cent, at US$50.59 on the New York Stock Exchange. They were unchanged in after-hours trade. 

Team Marshe
Martin Koh/ Sherry Tang
93833992/ 98444400

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