Jones Lang LaSalle reports solid second quarter financial results (US)

Jones Lang LaSalle has reported net income of $24.8 million, or $0.74 per diluted share of common stock for the second quarter of 2005, and net income of $16.2 million, or $0.48 per share, for year-to-date 2005. In 2004, net income for the second quarter was $5.1 million, or $0.16 per share, with a year-to-date net loss of $1.0 million, or $0.03 per share. Included in the prior year's second quarter figures was a $0.26 per share expense related to the redemption of the firm's €165 million 9% Senior Notes.

All segments of the firm reported year-over-year improvements in revenue for both the quarter and the first half of this year. For the quarter, revenues increased 23% in U.S. dollars, 20% in local currencies, to $325.1 million from $264.0 million in 2004. Revenues increased 17% in U.S. dollars, 14% in local currencies, to $565.3 million for the first half of 2005 compared to $484.7 million for the same period in 2004.

Second quarter highlights:

  • Revenues increased in 23% in U.S. dollars and 20% in local currencies
  • Operating income increased to $29.9 million from $15.3 million
  • LaSalle Investment Management completed record capital raise; nearly $28 billion of assets under management.

The form benefited from strong performance in the second quarter, amplified by transactions that closed ahead of the seasonal pattern of the prior year. While profits remain concentrated in the fourth quarter, the firm believes that if healthy market conditions continue, the current full-year analyst consensus expectation of $2.40 per share should be achievable.

Overall, the firm continues to emphasize growth in annuity revenues as well as enhancement of profit margins in all product and service lines. The firm plans to continue its announced strategic investments in 2005, balancing achievement of current performance with its ambitious long-term growth objectives.

Source: Jones Lang LaSalle

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