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We had an exceptional 2005, our third consecutive year of record results, and we are now focused on continuing this strong performance in 2006. Supported by healthy market conditions, loyal clients and the skills and commitment of our people, we are well-positioned to maintain our momentum and build further competitive advantage this year.
2005 FINANCIAL HIGHLIGHTS:
A YEAR OF RECORD REVENUE AND PROFIT
We reported record revenue and profit in 2005. Revenue grew in all our operating segments, totaling $1.39 billion for the year, a 19 percent increase over 2004 revenue of $1.17 billion.
Net income increased 61 percent, to $104 million in 2005, or $3.12 per diluted share. 2004 net income was $64 million, or $1.96 per diluted share. 2005 operating income increased 47 percent, to $132 million, compared with $90 million a year earlier.
Our Board of Directors declared a cash dividend in 2005, the first of what we anticipate will be regular, semiannual payments. The dividend reflects our healthy cash flows and the overall strength of our balance sheet.
Independent confirmation of the quality of our business came early this year, when Jones Lang LaSalle was named to the 2006 Forbes Platinum 400. A list of leading companies from all industry sectors, the Forbes 400 is selected on the basis of consistently strong financial performance and sound corporate governance. We were the only real estate money management and services firm to be awarded this honor.
FOCUS ON GROWTH
Superior performance allows us to make ongoing investments in growth at Jones Lang LaSalle. This annual report focuses on those investments and the results they produce for our clients and our company. A steady commitment to growth enables us to improve our performance consistently, creating sustainable long-term value for our clients and shareholders, and enhancing career opportunities for our people.
As the front section of the report illustrates graphically, our approach to growth on a global scale is summarized by what we call “the G5.” These are our five strategic priorities: areas where we have the skills and resources to expand and differentiate our business by further developing our world-class service capabilities.
At the core of these opportunities is our global platform, which is unique in its quality of service and its geographical coverage and balance. We own all of our offices, and our people report through a single management structure. Add to that the quality of those people and the range of products and services they offer clients, and the power of our global operations is clear.
Our firm is ultimately as strong as the collective strength of our local market positions, so we continuously look for ways to expand and improve the platform. We are adding new capabilities where we already operate and are moving into new growth markets to meet our clients’ service needs. Our first growth priority, reinforcing our local market positions, is our plan to capture these opportunities. The markets we discuss in this report—whether in Russia or India, or Boston and Washington, D.C.—offer a few examples of the progress we are making as we continue to extend and strengthen our presence in markets around the world.
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