Jones Lang LaSalle’s performance lagged behind rivals Insignia and Catella in the second quarter. JLL reported a net loss of $1.9m, down from $12.4m in the same quarter last year, when it was still burdened with the cost of the Jones Lang Wootton/ LaSalle merger. Earnings before interest tax, depreciation and amortisation (EBITDA) plummeted from $28.3m in 2000 to $14.9m this year.
Chairman Stuart Scott said: “We were slightly below our expectations for the quarter, but are not disappointed, given the slowdown of the global economy. With the timing of any recovery uncertain, we are adjusting our earnings expectations for the full year to $1.31 per share, which matches our 2000 adjusted earnings.”
Insignia reported that its European operations for the second quarter had produced EBITDA up 140%, from $2.4m to $5.8m. Catella reported EBITDA totalling €8.2m and profit before tax reaching €6.7m, representing a 190% rise on the same period last year.
Alan Froggatt, chief executive of Insignia’s European operations, said: “We were more cautious at the start of the year and have been proved right. We expect market conditions to tighten over the next six months as global markets slow, but believe our competitive position is strengthening.”
But JLL’s revenues in the US increased from $67m to $74m, whereas Insignia’s US parent, Insignia Financial Group, recorded a $1.45m net loss, compared with $811,000 in the same quarter last year.
Insignia chairman Andrew Farkas said: “At the start of the 2001 we believed the year’s performance would not reach the unprecedented levels of 2000, but that it would be a solid year. We are pleased with the results despite the economic slowdown.”
Catella’s results represent its fifth consecutive year of growth, with revenues for the first six months of 2001 amounting to €37.5m, up 29% on last year.
