Jones Lang LaSalle Incorporated has reported net income of $64.2 million, or $1.96 per diluted share of common stock, for the year ended December 31, 2004. The prior yearâs net income was $36.1 million, or $1.12 per diluted share.
For comparison purposes, the 2004 results included onrecurring and restructuring charges of $2.6 million, or $0.06 per diluted share, while 2003 included charges of $4.4 million, or $0.10 per diluted share. The 2004 results also included an expense of $11.6 million, or $0.26 per diluted share, associated with the planned early redemption of the firmâs Euro 165 million 9 percent Senior Notes (âSenior Notesâ). Operating income for the year was $89.5 million compared to $54.2 million in 2003.
For the fourth quarter of 2004, net income was $50.0 million, or $1.52 per diluted share, compared with a net income of $37.3 million, or $1.14 per diluted share, for the same period in 2003. The fourth quarter results of 2004 included a charge for non-recurring and restructuring of $5.0 million, or $0.11 per diluted share, while the 2003 results for the same quarter included a charge for non-recurring and restructuring of $1.7 million, or $0.04 per diluted share.
Full Year 2004 Highlights:
- Revenues increased 17 percent in local currencies and 24 percent in U.S. dollars
- Operating income increased 65 percent with margin improvement in all business segments
- Net debt decreased almost $120 million from the prior year to end the year at $29 million
âThe profit performance around the globe reflects the value of our product offerings and services to our clients as well as the performance focus of our people. From this position of strength, we will concentrate in 2005 on investing in all geographies and in each of our major service lines to maximize future growth to the benefit of clients and shareholders,â said Colin Dyer, the firmâs Chief Executive Officer.
2005 Outlook
Consistent with prior years, the firm is not giving full year earnings guidance for 2005 due to both the transactional nature of a large part of the firmâs service offerings as well as the seasonal nature of the business. This seasonality back-ends the majority of the firmâs profits into the fourth quarter, and makes it premature to predict the 2005 operating environment at this time. Caution is recommended against assuming that sales of assets from our Investment Management business in 2005 will result in equity earnings and incentives fees at the levels seen in 2004.
The firm continues to emphasize growth in its annuity revenues as well as enhancement of the profit margins in all its product and service lines. The firm also plans to increase its strategic growth investments in 2005 to areas such as China, and to its global Corporate Solutions and global Capital Markets businesses. The current economic environment appears stable globally for real estate services, with continued strong growth expected in the Asia Pacific Region.
Source: Jones Lang LaSalle
