CHICAGO-Jones Lang LaSalle had a strong second quarter, according to executives reporting Q2 results on a conference call Wednesday. Revenue rose 24% to $845 million compared to second quarter 2010, and net income rose to $44 million compared with $32 million a year ago.
However, the executives reported that various market fundamentals competed during the quarter to produce unusual results. Emerging markets are stronger than advanced countries, Europe and Asia volumes were down while the Americas rebounded, and the firm’s public institution business line is experiencing softening revenue, while revenue in the capital markets and hotel business doubled to $32 million in Q2.
Colin Dyer, Global CEO, said during the call that broadly speaking, the multispeed global recovery continues. “However, we have seen confidence weaken recently amongst both our corporate and investor clients,” Dyer said, “as concerns about government finances in a number of countries, job growth stagnation in certain economies and political tensions in the Middle East have affected the mood of both business and consumers.”
He said the highlight of the quarter was the completion of the merger with King Sturge. The company performed the takeover of the London-based property firm in May for $319 million. The integration of the two firms will likely cost about $25 million, estimated Lauralee Martin, COO and CFO, during the call. “We are off to a very good start in the hard work of integrating our two platforms,” Martin said.
With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries. The company’s stock dropped almost 5 cents per share to $87.67 by market close Wednesday.
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