JLL Squeaks past the Postive in First-Quarter Earnings
- Apr 29, 2010
April 29, 2010
By Allison Landa, News Editor
Jones Lang LaSalle has reported net income of $0.2 million for the first quarter – a marked improvement from a net loss of $61 million a year earlier. With an adjustment for restructuring and certain non-cash investment charges in the first quarter, net income would have been $6 million, as opposed to a loss of $22 million in the first quarter 2009.
“Net income in the first quarter benefited from continued momentum from the fourth quarter of 2009 and the transition to a more variable compensation structure in a number of the firm’s transactional businesses,” JLL’s earnings release reads.
First-quarter highlights include a revenue increase of 12 percent in local currency, driven by increased activity across all operating segments, as well as the recovery of transactional revenue and continued growth in corporate outsourcing business. JLL also cited significant new client mandates in LaSalle Investment Management.
There were $1 million in restructuring charges during the first quarter, as well as $6 million of non-cash coinvestment impairment charges. The earnings report notes that restructuring charges are excluded from segment operating results, though they are included for consolidated reporting. Non-cash co-investment impairments are included in equity losses at the consolidated and segment reporting levels.
Operating expenses during the first quarter, excluding restructuring charges, were $562 million as opposed to $505 million in 2009. Outstanding debt on JLL’s long-term credit facilities was $335 million during the period as compared to $496 million a year earlier.
JLL serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm has a portfolio of approximately 1.6 billion square feet worldwide.