JLL sees Q4 profit slide 60%

Global property adviser Jones Lang LaSalle reported net income of $41.5 mln (EUR 32.2 mln) in the final quarter of 2008, down 60.6% on the $105.4 mln booked in the year-earlier period as property markets worldwide took a beating from the credit crisis. Per share, profit fell to $1.17 from $3.16 in 2007.

Full-year net income in 2008 fell 68% to $84 mln, or $2.44 per share, from $256 mln or $7.64 per share in the year-earlier period. The decline partly reflected acquisition and severance charges totalling nearly $50 mln. JLL booked $18 mln of intangible amortization and $7 mln of integration costs relating to the acquisition of The Staubach Company in the US and Kemper's in Germany. Full-year results also included severance charges of $23 mln resulting from the need to reduce staff in response to the global economic downturn.

Full-year revenue was flat at $2.7 bn, despite substantial declines in Capital Markets and Hotels transactions levels, JLL said. Over the fourth quarter of 2008, revenue fell 8% to $797 mln from $862 mln a year earlier. JLL attributed the drop to the stronger US dollar and a $106 mln decline in revenue from Capital Markets and Hotels.

Revenue from the EMEA region amounted to $871 mln over the full year, down 6% from 2007. Over the final quarter, revenue was down 26% at $243 mln compared with the previous year. Here again, the main contributing factors were Capital Markets and Hotels, down $152 mln or 44% for the year and down $56 mln or 49% for the quarter.