NEW YORK, April 29 (Reuters) - CB Richard Ellis Group Inc , one of the world's largest commercial real estate
services firms, posted a quarterly net loss versus a year-ago
profit, reflecting the global slowdown in real estate sales and
leasing demand.
The company posted on Wednesday a first-quarter net loss $36.7 million, or 14 cents per share, compared with a profit of $20.5 million, or 10 cents per share, in the year-earlier quarter.
Excluding one-time charges, the company reported a net loss of $7.5 million, or 3 cents per share. Revenue fell 27.7 percent to $890.4 million. Analysts had expected the company to post a profit of 2 cents per share on $982.8 million in revenue, according to Reuters Estimates.
The charges included $7.9 million in the first quarter for severance and office closing.
The global commercial real estate market has been pounded by frozen credit markets and weakening economies.
Rival Jones Lang LaSalle Inc on Tuesday posted a first-quarter net loss compared with a year-earlier profit, reflecting the slump in real estate sales and values.
As high-margin business such as sales and leasing brokerages has slackened, CB Richard Ellis has focused on pumping up its outsourcing business which includes overseeing real estate needs of global companies. Still, revenue from this business fell.
CB Richard Ellis said it has now cut or targeted for elimination between $475 million and $500 million of operating expenses.
Shares of CB Richard Ellis on Wednesday closed at $6.57 per share, up 5.3 percent, or 33 cents on the New York Stock Exchange, and traded at $6.56 in after-hours activity.
(Reporting by Ilaina Jonas, editing by Matthew Lewis) Keywords: CBRICHARDELLIS/ (ilaina.jonas@thomsonreuters.com; +1 646 223 6193; Reuters Messaging: ilaina.jonas.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company posted on Wednesday a first-quarter net loss $36.7 million, or 14 cents per share, compared with a profit of $20.5 million, or 10 cents per share, in the year-earlier quarter.
Excluding one-time charges, the company reported a net loss of $7.5 million, or 3 cents per share. Revenue fell 27.7 percent to $890.4 million. Analysts had expected the company to post a profit of 2 cents per share on $982.8 million in revenue, according to Reuters Estimates.
The charges included $7.9 million in the first quarter for severance and office closing.
The global commercial real estate market has been pounded by frozen credit markets and weakening economies.
Rival Jones Lang LaSalle Inc on Tuesday posted a first-quarter net loss compared with a year-earlier profit, reflecting the slump in real estate sales and values.
As high-margin business such as sales and leasing brokerages has slackened, CB Richard Ellis has focused on pumping up its outsourcing business which includes overseeing real estate needs of global companies. Still, revenue from this business fell.
CB Richard Ellis said it has now cut or targeted for elimination between $475 million and $500 million of operating expenses.
Shares of CB Richard Ellis on Wednesday closed at $6.57 per share, up 5.3 percent, or 33 cents on the New York Stock Exchange, and traded at $6.56 in after-hours activity.
(Reporting by Ilaina Jonas, editing by Matthew Lewis) Keywords: CBRICHARDELLIS/ (ilaina.jonas@thomsonreuters.com; +1 646 223 6193; Reuters Messaging: ilaina.jonas.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.