CB Richard Ellis Group Inc. reported a loss in the second quarter as leasing and sales in the commercial real estate market sharply declined.
The Los Angeles commercial real estate broker late Wednesday reported a net loss of $6.64 million (2 cents a share), compared with net income of $16.6 million (8 cents) a year ago.
Revenue was $956 million, down 27 percent from last year. Analysts had expected nearly $960 million. The company took $22.5 million in charges related to severance and contract terminations, lease write-offs and other items.
CBRE raised $600 million in new capital during the quarter and said it also had raised its cost-cutting goal, through staff reductions and other savings, to an annual rate of $575 million to $600 million. That's up from a prior goal of $475 million to $500 million savings.
"Our second quarter results were in line with expectations," Chief Executive Brett White said in a statement. "This is a direct result of the aggressive actions we began taking more than 18 months ago to lower expense levels to address the current market environment."
Shares closed up 52 cents, or 5 percent, to $10.45 Thursday on the New York Stock Exchange.
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