[R]1:00PM New York - Jones Lang LaSalle Inc. posts a 30% fourth quarter profit increase.[/R]

Revenue Review

Jones Lang LaSalle, a global real estate firm, reported fourth quarter revenue increase of 22% to $862 million compared with $704.4 million posted in the year ago quarter spurred by firmer growth in all business lines.

The company said revenues in the Americas rose 11% and was up 37% in the Asia-Pacific region. In Europe, Middle East and Africa (EMEA) revenue jumped 21%.

For fiscal 2007, the investment management firm posted revenue of $2.7 billion, up 32%.

Jones Lang LaSalle chief executive Colin Dyer said the firm escaped the loan market turmoil helped by its diversified portfolio.

Several financial institutions have been trapped in the subprime mortgage crisis, which have seen companies report huge losses.

Earnings Review

In the quarter, net income leapt 30% to $105 million from $80.4 million a year ago.

Operating income gained 23% to $140 million in the quarter, and was up 40% to $342 million for 2007, led by Asia Pacific and EMEA.

Jones Lang LaSalle said earnings rose 33.3% to $3.16 per share from $2.37 per share previously, and beat forecast of $2.73 per share, according to analysts polled by Thomson Financial.

Analysts also expected fourth quarter revenues of $826 million.

The strengthening of foreign currencies against the U.S. dollar in 2007 contributed $0.07 per share in the fourth quarter or $0.23 per share in 2007.
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At full year, net income gained 46% to $256 million or $7.64 per share from $175 million or $5.24 per share in 2006.

Fourth quarter operating expenses rose 22% to $721 million, and surged 31% to $1.8 billion in 2007.

The company said expenses were driven “by additions to revenue-generating and client-service staff, both through hiring and strategic acquisitions, and the expansion of offices.”

Higher incentive compensation costs related to the revenue and profit performance also contributed to the increase in operating expenses.
In 2007, Jones Lang LaSalle completed 13 strategic acquisitions including five in the fourth quarter.

Segment Analysis

The property group said fourth quarter revenue in the Americas region rose 11% to $250 million and was up 23% to $765 million in the year. Management services rose 23%, as Transaction services revenue gained 20% in 2007, and remained flat in the quarter.

Revenue from capital market fell 20% in the quarter and was unchanged at 22% in the year, as a result of the credit crunch in the U.S, which reduced investment sales volumes.

In the Americas, operating income for the full year increased 23% to $80.5 million and decreased for the fourth quarter to $34.7 million from $42.4 million.