DTZ's shares dropped as much as 20% on Wednesday as the property advisor warned its results would be significantly lower than expected due to the deteriorating global economic conditions. By mid-day on Wednesday the shares were down just under 16%.
DTZ's shares dropped as much as 20% on Wednesday as the property advisor warned its results would be significantly lower than expected due to the deteriorating global economic conditions. By mid-day on Wednesday the shares were down just under 16%.
'Whilst well diversified, both geographically and by service line, our recent trading has inevitably been impacted by the overall market conditions as transactional markets have become progressively more difficult,' DTZ said in an interim management statement.
'In EMEA there has been downward market pressure but this has been largely offset by the work of our non-transactional personnel, with our professional services teams making particularly encouraging progress. Asia Pacific has generally continued to perform well. However, DTZ Rockwood, our North American specialist capital markets business, has suffered significantly from the impact of the poor investment markets in the US.'
DTZ said it was more difficult than normal to predict the timing of transactions around our year end following the sudden collapse of Bear Stearns last week. 'In light of these conditions, it is the board's present view that results for the current financial year will be significantly below market expectations.'
'Overall, in contrast to 2007, we expect the global property services market to experience more difficult conditions throughout 2008. These conditions do vary both geographically and by sector but it remains to be seen how much further the recent financial turmoil will influence our clients and markets.’
