What was the primary driver of the significant increase in revenue for the nine months ended September 30, 2011?

The primary driver of the significant revenue increase was the acquisition of Hewitt Associates, Inc., which significantly expanded Aon's HR Solutions segment. This acquisition, along with other smaller acquisitions, contributed substantially to the reported revenue growth.

How did the restructuring initiatives impact the company's financial performance?

The restructuring initiatives, particularly the Aon Hewitt Plan, incurred costs but are expected to yield significant annual savings starting in 2013. These initiatives are aimed at streamlining operations and improving long-term efficiency. While restructuring charges impacted expenses, the company also reported realization of savings from these plans.

What is the company's outlook regarding its liquidity and financial condition?

Aon believes its balance sheet and strong cash flow provide sufficient financial flexibility. Primary sources of liquidity include cash flow from operations, cash reserves, and debt capacity. The company expects operating cash flow to be sufficient to meet its obligations, fund restructuring, capital expenditures, share repurchases, and dividends. They maintained substantial cash and available credit facilities.

How did foreign exchange rates affect the company's results?

Foreign exchange rate fluctuations had a notable impact, generally favorable for Aon during this period. For example, currency movements had a positive impact on revenue and adjusted net income from continuing operations per diluted share. The company actively uses derivatives to manage foreign exchange risk.

AON 10-Q Quarterly Report Q3 FY2011 — Revenue, Net Income, EPS

Summary

Aon plc (AON) reported solid results for the nine months ended September 30, 2011, with total revenue increasing significantly to $8.3 billion, largely driven by the acquisition of Hewitt Associates, Inc. The company navigated a challenging global economic environment characterized by pricing pressures and decreased economic growth drivers. Despite these headwinds, Aon demonstrated resilience, with organic revenue growth improving compared to the prior year's period. The company also continued its strategic restructuring initiatives, aiming for enhanced operational efficiency and cost savings. Net income attributable to Aon stockholders for the nine months ended September 30, 2011, was $702 million, a substantial increase from $491 million in the prior year. This growth reflects the successful integration of Hewitt and improved operational performance. Aon also actively managed its capital structure, repurchasing shares and managing its debt levels. The company maintained a strong liquidity position, supported by cash flow from operations and available credit facilities, positioning it to meet its financial obligations and pursue strategic growth opportunities.

Financial Highlights

52 data points

Beta

Revenue

$2.72B

Net Income

$198.00M

0.1% Net Margin

EPS (Diluted)

$0.59

Total Assets

$28.75B

Cash & Equivalents

$295.00M

Free Cash Flow

$316.00M

Financial Statements

Beta

Revenue	$2.72B
Operating Expenses	$2.40B
Operating Income	$328.00M
Interest Expense	$60.00M
Net Income	$198.00M
EPS (Basic)	$0.59
EPS (Diluted)	$0.59
Shares Outstanding (Basic)	332.60M
Shares Outstanding (Diluted)	336.90M

Key Highlights

1Total revenue for the nine months ended September 30, 2011, increased to $8.3 billion, primarily due to the acquisition of Hewitt Associates, Inc.
2Net income attributable to Aon stockholders rose to $702 million for the nine months ended September 30, 2011, up from $491 million in the prior year.
3Organic revenue growth showed improvement, reaching 1% for both the third quarter and the first nine months of 2011, compared to flat growth or a decline in the prior year periods.
4The company is actively engaged in restructuring initiatives, with the Aon Hewitt Plan expected to result in cumulative costs of approximately $325 million and annual savings of $280 million by 2013.
5Aon maintained a strong liquidity position with $902 million in cash and cash equivalents and short-term investments as of September 30, 2011.
6Shareholder returns were supported by continued share repurchases, with approximately $1.2 billion remaining authorization under the 2010 Share Repurchase Program as of September 30, 2011.
7Adjusted diluted earnings per share from continuing operations for the nine months ended September 30, 2011, were $2.32, an increase from $2.26 in the prior year period.

Aon plc Quarterly Report for Q3 Ended Sep 30, 2011

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions