CB Richard Ellis Profit Rises 25% in 4th Quarter
CB Richard Ellis Services Inc., the world’s largest commercial property manager and broker, on Tuesday said fourth-quarter profit rose 25% on increased fees from sales and leasing services.
Los Angeles-based CB Richard Ellis said net income rose to $17 million, or 81 cents a share, from $13.6 million, or 65 cents in the year-earlier period. Revenue rose 20% to $395.7 million from $330.3 million.
Revenue from CB Richard Ellis’ transaction-management unit, which includes fees from conducting commercial-property sales and leasing transactions for clients, rose 24% during the quarter. The company credited record leasing activity in North America.
The company disposed of five offices and sold its small insurance operations to Aon Corp. during the quarter, giving it a pretax gain of $8.7 million. It also reported pretax charges of $9.1 million from severance expenses related to the company’s cost cuts in the quarter.
CB Richard Ellis laid off about 200 workers in managerial and administrative positions to cut costs during the fourth quarter, Chief Financial Officer John Haeckel said.
In November, the company had warned annual results would fall as much as 25% below estimates because of slower sales. Shares rose 6 cents to close at $13.06 on the New York Stock Exchange.
At a Glance
* Guess Inc., the Los Angeles-based apparel maker, reported fourth-quarter earnings of $19.2 million, or 44 cents per share, compared with $4.1 million, or 10 cents, a year ago. But the company cautioned that the quarterly results were inflated due to “unusually high” gross margin rates on inventory, and that it will have to restate third-quarter results.
Revenue rose to $195.5 million, compared with $133.0 million in the year-ago period.
The company has hired an outside consultant to help it revamp “controls and procedures surrounding its inventory costs accounting to assure the accuracy of future . . . results,” co-Chairman and co-CEO Maurice Marciano said. Shares fell $3.31 to $24.44 on the NYSE.
* Jack in the Box Inc., the San Diego-based operator and franchiser of Jack in the Box restaurants, reported record first-quarter earnings of $20.4 million, or 52 cents per share, compared with $15.8 million, or 40 cents, a year ago. That beat analysts’ estimates of 50 cents. Revenue rose to $477 million, compared with $407 million. Same-store sales at its 1,500 restaurants rose 5.7%.
MORE EARNINGS: C3, C8
