Industry News

Cendant announces cost-cutting measures for NRT

Company will discuss Q4, full-year earnings for 2005

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Cendant Corp. "is taking actions to reduce costs" at brokerage company subsidiary NRT Inc, "including consolidating offices," according to an earnings announcement released Monday. Revenue for Cendant's real estate services division reached $1.62 billion in fourth-quarter 2005, up 3 percent from fourth-quarter 2004. But the company's earnings before interest, taxes, depreciation and amortization (known as EBITDA) were down 7 percent in that time. Home-prices increases increased 12 percent at Cendant's real estate franchise business and 10 percent at NRT's company-owned real estate offices in the fourth quarter, though there was a 5 percent decline in closed transaction sides at company-owned and franchise offices, the company reported. The earnings reflect "the expected moderation of the residential real estate market, particularly in certain markets where NRT is concentrated such as the East and West coasts," according to the earnings report, and to "higher fixed costs at NRT in the...