CB Richard Ellis expects to meet its profit forecast in 2007despite the effect of the credit crunch on property markets.

Earnings are expected to grow by 50% a share. Analysts are forecasting $2.31 (£1.12) a share on average.

Speaking as the company revealed strong revenue and profit growth in its third quarter results, CBRE president and CEO Brett White said: ‘During a period of extremes in the global credit markets as well as uneasiness about the U.S. economy generally, CBRE posted very impressive year over year gains in both revenue and profitability.

Meeting expectations

‘These gains were ahead of our internal projections and support our view of achieving full year guidance.’

However, White also warned: ‘We expect the changed market conditions to have more of an impact on our investment sales performance in the fourth quarter.’

CBRE posted a third-quarter profit of $114.9m (£55.6m) or $0.48 (23p) a share, up 23% on the same period last year.


Excluding one-off charges the net profit was $130.2m (£63m), or $0.55 (27p) a share. Revenue was up 54% to $1.5bn (£727m).

In the third quarter, revenue for the Europe, Middle East and Africa region increased 49.5% to $320m (£155m), driven by growth in the UK, France, Spain and Germany. Operating income rose to $52m (£25m) from $26m (£12.5m).

The company also revealed that the interest expense associated with the financing of Trammell Crow had increased $33m (£16m) as a result of the liquidity crisis.