CBRE posts Q2 net profit, revenue up
New York, July 28, 2010
CB Richard Ellis Group (CBRE), one of the world's largest commercial real estate service companies, posted a second-quarter net profit and its strongest revenue growth since 2007, sending shares up 5.5 per cent in after-hours trade.
Second-quarter net income was $54.8 million, or 17 cents a share, compared with a net loss of $6.6 million, or 2 cents per share, a year ago, the company said.
Excluding one-time charges related to acquisitions, severance and space consolidations, write-downs of impaired assets and financing costs, the company earned $58.8 million, or 18 cents per share, exceeding analysts' average expectation for 9 cents per share, according to Thomson Reuters.
Revenue for the Los Angeles-based company rose 23 per cent to $1.2 billion. Analysts, on average, had expected $1.10 billion.
The US commercial real estate market has been clawing its way back to profitability from a severe decline that began in late 2007 and took a nose-dive last year.
Service companies were hard hit because their revenue is partly dependent on sales and leasing commissions.
In the Americas, revenue rose 20 per cent to $722.3 million. In Europe, the Middle East and Africa, revenue rose 28 per cent to $225.4 million.
In Asia-Pacific, revenue rose 29 per cent to $158.7 million.
CBRE’s shares traded up 5.5 per cent after hours to $16.25 from their close of $15.41. – Reuters