Summary
Aon plc (AON) reported solid financial results for the period ending June 30, 2011, showcasing significant revenue growth driven by strategic acquisitions, most notably Hewitt Associates. While facing a challenging global economic environment with pricing pressures, the company demonstrated resilience through a 1% organic revenue growth in both its Risk Solutions and HR Solutions segments. Net income from continuing operations attributable to Aon stockholders saw a substantial increase, reflecting improved profitability and effective cost management initiatives. The company's financial position remains strong, supported by robust operating cash flows. Aon has actively managed its debt structure, including refinancing efforts, and continued its share repurchase program. Despite ongoing restructuring charges related to the Hewitt integration, the company is focused on its key metrics of organic growth, margin expansion, and earnings per share, positioning itself for continued value creation for its shareholders.
Financial Highlights
52 data points| Revenue | $2.81B |
| Operating Expenses | $2.37B |
| Operating Income | $440.00M |
| Interest Expense | $63.00M |
| Net Income | $258.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 337.70M |
| Shares Outstanding (Diluted) | 342.70M |
Key Highlights
- 1Revenue increased by 48% to $2.8 billion in the second quarter and 47% to $5.6 billion year-to-date, primarily driven by acquisitions, particularly Hewitt Associates.
- 2Organic revenue growth was 1% for both the second quarter and the first six months of 2011, indicating stability and modest growth from existing operations.
- 3Net income from continuing operations attributable to Aon stockholders rose by 43% to $256 million in the second quarter and 40% to $500 million year-to-date.
- 4Operating expenses increased due to the inclusion of acquired entities and amortization of intangible assets but were partially offset by restructuring savings.
- 5The company actively managed its debt, completing a refinancing that resulted in a $19 million loss on extinguishment of debt but improved its debt structure.
- 6Aon continued its share repurchase program, buying back 12.6 million shares for $653 million in the first six months of 2011.
- 7Restructuring charges related to the Aon Hewitt Plan amounted to $54 million for the first six months of 2011, with an expected total cost of $325 million.