* CBRE Q2 profit, ex charges, share 27 cents vs Wall Street
view 26 cents
* CBRE maintains full year outlook
* JLL Q2 profit, ex charges, share $1.13 vs Wall Street view
By Ilaina Jonas
NEW YORK, July 31 Two of the largest global real
estate services companies reported higher profits on Tuesday but
each warned the cautious global economic environment was
affecting real estate.
CBRE Group Inc said second-quarter earnings,
excluding charges, rose 31 percent, as strength in the Americas
offset a decline in revenue from Europe.
Its earnings, excluding items, was $88 million, or 27 cents
per share, on revenue of $1.60 billion, beating Wall Street's
forecast of 26 cents per share on revenue of $1.57 billion,
according to Thomson Reuters I/B/E/S.
Meanwhile, Jones Lang LaSalle reported second-quarter
earnings, excluding charges of $51 million, or $1.13 per share,
up 2 percent, on revenue that rose 9 percent to $921 million.
But Jones Lang LaSalle, based in Chicago, missed Wall Street's
forecast of $1.26 per share on revenue of $933.1 million.
That was due in part to the method of accounting of its
Property & Facility Management, which initially results in low
margins that fall to the bottom line, JMP Securities analyst
Will Marks said.
CBRE maintained its forecast for the year of earnings,
excluding charges, of $1.20 to $1.25 per share, excluding
charges, noting the sluggish global economy in many parts of the
world. Analysts expect $1.23 per share.
Colin Dyer, Jones Lang LaSalle's president and chief
executive officer, called the overall second quarter: "a
cautious market environment."
"The bottom-line miss is a lot of growth came from lower
margins in its Property & Facility Management business," Marks
said of Jones Lang LaSalle. Of CBRE he said: "The largest
business, which is leasing, is facing some amount of headwinds."
Shares of CBRE closed at $15.58, down 4 percent or 66 cents
on the New York Stock Exchange and were unchanged after-hours.
Shares of Jones Lang LaSalle closed down 0.2 percent at $66.69
on the New York Stock Exchange and lost 0.3 percent to $66.51