=DJ CB Richard Ellis 3Q Net Falls 65% On Weak Sales, Leasing>CBG
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DOW JONES NEWSWIRES
CB Richard Ellis Group Inc.'s (CBG) third-quarter net income dropped 65% on weak sales activity as a result of the global financial crisis and soft leasing because of the weak economy in the U.S. and U.K.
"Our third-quarter results reflected the extremely challenging market conditions, which continued to deteriorate globally," said Chief Executive Brett White. "Macroeconomic conditions remain very challenging and therefore we continue to focus on cost reductions and market share expansion opportunities across all business lines."
CB Richard Ellis has cut $190 million of permanent run-rate expenses since commercial real estate began to turn down. It expects to realize the full benefit of the cuts in 2009.
The real-estate services company reported net income of $40.4 million, or 19 cents a share, down from $114.9 million, or 48 cents a share, a year earlier.
Excluding items, earnings fell to 27 cents a share from 55 cents.
Revenue dropped 13% to $1.3 billion.
Analysts expected per-share earnings of 23 cents on revenue of $1.18 billion, according to a poll by Thomson Reuters.
Revenue in the company's real-estate development and investment business grew 26%, but the segment posted an operating loss of $3.5 million compared with a profit of $7.8 million a year earlier.
Global investment-management profit was flat, while revenue dropped 60%. Total assets under management declined 6% to $40.9 billion in the latest quarter.
Outsourcing revenue grew 30% and made up more than one-third of global revenue.
Earnings in the Americas region fell 34% and were down 72% in both Europe, Middle East and Africa and in Asia Pacific.
CB Richard Ellis' shares were at $5.75, up 1.4%, in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com
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(END) Dow Jones Newswires
November 06, 2008 17:44 ET (22:44 GMT)
Copyright (c) 2008 Dow Jones & Company, Inc.- - 05 44 PM EST 11-06-08 |
