CBRE Profit Off By 94%; Likely To Ask To Restructure Loans
February 12, 2009
CBRE (CBG: 22.28 -3.34%) released it’s earnings numbers and they are not pretty. Net income is off 94.7% (to $6.5M) on a 30 percent decline in revenues. The company also failed to issue guidance citing continued uncertainty in the marketplace.
The company is under a mountain of debt (roughly $2B) following an acquisition spree it went on over the past several years. The company is reportedly going to seek to restructure its debt with its lenders, $500 million of which is coming due in the next 24 months. The company is required to maintain specific cash flow to debt ratios per its obligations under those loans.
Accord to a Los Angeles times article,
The company said Wednesday that it had eliminated 1,500 budgeted positions from a workforce of 29,000 since last year, mostly through layoffs and attrition. That’s 400 more positions than had been eliminated as of November.
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I had heard some time ago that CBRE was going to have a tough year and may possibly even fail. Looks like Sperry Van Ness, Grubb & Ellis and CBRE may all be gone from the brokerage landscape.