Industry News

Realogy profits drop

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In its first quarter as an independent company after spinning off from Cendant, Realogy Corp. (NYSE: H) on Wednesday reported third-quarter net income of $87 million, down 62 percent from $227 million net income in third-quarter 2005. The company also reported revenue of $1.73 billion in third-quarter 2006, down 16 percent compared to third-quarter 2005. Realogy has embarked on a cost-cutting plan, which includes office closures, that should trim operating expenses by about $60 million per year, said Richard A. Smith, vice chairman and president at Realogy. The company announced that about $35 million worth of cuts would be realized this year. Smith said the company is "on track to merge, consolidate or close about 100 NRT offices by year-end, while preserving our productive agent population and market position." Realogy chairman and CEO Henry R. Silverman said during Wednesday's earnings presentation that Realogy officials could enter into talks if another company proposes an acquisit...