Summary
Aon plc's Q2 2013 10-Q filing reveals a 3% increase in total revenue to $2.9 billion, driven by organic growth in both Risk Solutions (3%) and HR Solutions (2%). While net income attributable to Aon shareholders saw a slight decrease of 2% to $241 million for the quarter, year-to-date net income increased by 4% to $502 million. The company highlighted strong cash flow from operations, which increased by 44% year-over-year to $387 million for the first six months. Significant restructuring charges related to the Aon Hewitt plan continued, with the company finalizing additional actions and expecting cumulative costs of $411 million. Despite some headwinds like economic weakness in Europe and pricing pressures in benefits administration, Aon maintained a robust balance sheet and financial flexibility, with substantial capacity for share repurchases and debt management.
Financial Highlights
51 data points| Revenue | $2.90B |
| Operating Expenses | $2.52B |
| Operating Income | $382.00M |
| Interest Expense | $48.00M |
| Net Income | $241.00M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 313.70M |
| Shares Outstanding (Diluted) | 317.10M |
Key Highlights
- 1Total revenue increased by 3% to $2.9 billion for the quarter, driven by 3% organic revenue growth in Risk Solutions and 2% in HR Solutions.
- 2Net income attributable to Aon shareholders was $241 million for the quarter, a slight decrease of 2% year-over-year, but year-to-date net income increased by 4% to $502 million.
- 3Operating income from continuing operations for the quarter was $382 million, a decrease of 3% from the prior year, reflecting increased operating expenses.
- 4Cash flow from operating activities significantly improved, increasing by 44% to $387 million for the first six months of 2013 compared to the same period in 2012.
- 5The company continued its restructuring efforts under the Aon Hewitt Plan, incurring $53 million in charges during the quarter and noting total expected costs of $411 million.
- 6Aon repurchased approximately 3.5 million shares for $225 million in the second quarter of 2013 as part of its $5 billion share repurchase program.
- 7The company maintained strong liquidity with $573 million in cash and short-term investments and an undrawn $1.2 billion credit facility.