CB Richard Ellis Group. Inc (NYSE:CBG) reported revenue of $1.3 billion for the third quarter of 2008, compared with $1.5 billion for the third quarter of 2007. The Company reported net income of $40.4 million, or $0.19 per diluted share, for the third quarter of 2008, compared with net income of $114.9 million, or $0.48 per diluted share, for the same quarter last year.
CB Richard Ellis continued to generate significant growth in its recurring fee-based outsourcing business activities. Revenue from this business line rose by 30% in the third quarter and accounted for more than one-third of global revenue – up from approximately 23% in the same period of 2007. For the first nine months of 2008, the Company added 27 new corporate outsourcing clients and expanded its service offering with 25 existing corporate relationships, with services increasingly being furnished on an international and global scale.
"Our third quarter results reflected the extremely challenging market conditions, which continued to deteriorate globally, " said Brett White, president and chief executive officer of CB Richard Ellis. "However, we performed reasonably well considering the extent of negative conditions in the marketplace. The investment sales and investment management businesses continue to operate at reduced levels of activity due to the unprecedented weakness in the credit markets. Although leasing markets are softer worldwide, the performance of this business line during the third quarter of 2008 has only declined by 5% on a global basis versus 2007 with better performance evident in Asia Pacific. We benefited during the quarter from our past diversification efforts, which have boosted recurring revenues from outsourcing contracts with corporate and institutional clients. Macroeconomic conditions remain very challenging and therefore we continue to focus on cost reductions and market share expansion opportunities across all business lines."
For the first nine months of the year, CB Richard Ellis attained a 17.2% market share in U.S. investment sales versus 16.1% for 2007, according to Real Capital Analytics. This performance is evidence of the Company’s ability to improve its position in an overall weak market.
