“Cautiously optimistic” US giant sees losses reduce and revenues fall
Mark Cooper
A “cautiously optimistic ” Jones Lang LaSalle is predicting 7-10% earnings growth this year but expects revenues to remain flat.
Reporting flat pre-exceptional income and falling revenues for the year to December, JLL said that earnings growth would come from reductions in its cost base.
Chief executive Chris Peacock said revenues for 2002 would be flat. “We are cautiously optimistic for the year ahead,” he said. “We expect the market to improve in the last quarter – but our predicted earnings growth is not dependent on that.”
JLL reported adjusted net income of $40.5m, $1.31 per share, for the year to December, compared with an adjusted figure of $40.5m for the same period in 2000.
However, the adjusted figures do not account for exceptional charges of $77.2m incurred last year. These include $18m of write-offs from internet investments and $43.9m of charges incurred by the firm’s job-cutting programme.
In November, JLL announced that it would slash 600 jobs, 9% of its workforce.
In 2000, the group incurred $85.8m of exceptional expenses related to the Jones Lang Wootton/LaSalle merger.
Revenue for 2001 fell 4% to $881.7m. Under Generally Accepted Accounting Principles, JLL recorded a loss of $15.4m, an improvement from a loss of $57.1m in 2000.
In Europe, 2001 revenues fell 2% to $348.2m. Operating income was flat, because of mainly reduced bonus payments, said JLL. Fourth quarter revenues in Europe increased by 5%year-on-year to $107m, however.
Overall, JLL reported a wider fourth-quarter net loss of $2.9m compared with a loss of $1.8m in the previous year. Revenue was $263.4m, down from $283m in the same period last year.
Peacock said that the group had paid off $28m of debt in 2001. He added that he had targeted payment of $60m over two years, but had exceeded that, repaying $97m.
|
JLLresults 1998-2001 ($m) |
||||
|
2001 |
2000 |
1999 |
1998 |
|
|
Total revenue |
881 |
923 |
814 |
848 |
|
Operating expenses |
791 |
831 |
741 |
761 |
|
Interest and taxes |
28 |
49 |
20 |
32 |
|
Merger/restructuring/ other exceptional costs |
77 |
86 |
161 |
164 |
|
Net loss |
-15 |
-57 |
-108 |
-108 |
|
Adjusted net income* |
40 |
40 |
32 |
44 |
|
Source: JLL *Excluding merger costs and exceptional costs |
||||
