INN Blog

More Posts
 

Marsh & McLennan Companies Post First Quarter 2014 Results

Proquest LLC

Marsh & McLennan Companies, a global professional services firm, on May 2 reported financial results for the first quarter ended March 31.

President and CEO Dan Glaser said: "We produced double-digit earnings growth and meaningful margin expansion in the first quarter, with adjusted earnings per share rising 11 percent to $.81. This represents a strong start to 2014 and continues the excellent momentum we have achieved over the past several years. On a consolidated basis, underlying revenue growth was 4 percent, adjusted operating income rose 11 percent, and the adjusted margin increased 120 basis points to 20.9 percent, reflecting continued margin expansion in both the Risk and Insurance Services and Consulting segments."

In a release on May 2, the Company noted:

Consolidated Results

Consolidated revenue in the first quarter of 2014 was $3.3 billion, an increase of 4 percent on both a reported and underlying basis, compared with the first quarter of 2013. Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items, such as acquisitions, dispositions, and transfers among businesses. Operating income rose 11 percent to $673 million, compared with $607 million in the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, also rose 11 percent to $682 million.

Net income attributable to the Company was $443 million, or $.80 per share, in the first quarter. This compares with $413 million, or $.74 per share, in the prior year. Earnings per share from continuing operations rose 11 percent to $.80, compared with $.72 last year. Adjusted earnings per share also increased 11 percent to $.81, compared with $.73 last year.

Risk and Insurance Services

Risk and Insurance Services revenue was $1.8 billion in the first quarter of 2014, an increase of 4 percent, or 3 percent on an underlying basis. Operating income rose 5 percent to $493 million, compared with $468 million in the prior year. Adjusted operating income increased 6 percent to $500 million.

Marsh's revenue in the first quarter of 2014 was $1.5 billion, an increase of 5 percent, or 4 percent on an underlying basis. International operations produced underlying revenue growth of 4 percent, reflecting growth of 11 percent in Latin America; 9 percent in Asia Pacific; and 2 percent in EMEA. In the US/Canada division, underlying revenue was up 2 percent. Guy Carpenter's revenue was $381 million, an increase of 2 percent from the prior year, or flat on an underlying basis.

Conquer the competition with Omega Builder IUL

Consulting

Consulting segment revenue was $1.4 billion in the first quarter, an increase of 5 percent from the first quarter of 2013 on both a reported and underlying basis. Operating income rose 20 percent to $225 million, compared with $187 million in the prior year, and adjusted operating income rose 19 percent to $225 million.

Mercer's revenue was $1.1 billion in the first quarter, an increase of 2 percent, or 3 percent on an underlying basis. Health, with revenue of $388 million, grew 2 percent on an underlying basis; Retirement, with revenue of $357 million, rose 4 percent; Investments, with revenue of $199 million, grew 8 percent; and Talent, with revenue of $117 million, declined 1 percent. Oliver Wyman Group's revenue was $371 million in the first quarter, an increase of 16 percent, or 11 percent on an underlying basis.

Other Items

In the first quarter of 2014, the Company reported investment income of $13 million, compared with $21 million in the prior year period. At March 31, cash and cash equivalents was $1.4 billion; net debt, which is total debt less cash and cash equivalents, was $1.7 billion. The Company repurchased 2.05 million shares of its common stock for $100 million in the first quarter.

More Information:

www.mmc.com

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Copyright:(c) 2014 ProQuest Information and Learning Company; All Rights Reserved.
Wordcount:631



USER COMMENTS:


  More Newswires

More Newswires >>
  Most Popular Newswires

More Popular Newswires >>
Hot Off the Wires  Hot off the Wires

More Hot News >>

insider icon Denotes premium content. Learn more about becoming an Insider here.
Conquer the competition with Omega Builder IUL