Summary
Aon plc's third quarter 2013 report shows modest revenue growth driven by both its Risk Solutions and HR Solutions segments. The company reported an increase in net income attributable to Aon shareholders, reaching $256 million for the quarter, up from $204 million in the prior year period. This growth was supported by a 3% organic revenue increase and disciplined expense management, although operating expenses did rise slightly due to various factors including acquisitions and restructuring costs. The company also highlighted strong free cash flow generation, which increased significantly year-over-year, providing flexibility for strategic initiatives such as share repurchases and dividends. Management emphasized continued focus on key metrics like organic growth, margin expansion, EPS growth, and free cash flow. Despite headwinds such as economic weakness in Europe and price compression in certain HR Solutions businesses, Aon demonstrated resilience. The company also provided updates on its ongoing restructuring initiatives, which are progressing as planned and expected to deliver significant annual savings. Overall, the report indicates a company navigating economic challenges while executing on its strategic priorities and returning capital to shareholders.
Financial Highlights
51 data points| Revenue | $2.79B |
| Operating Expenses | $2.43B |
| Operating Income | $364.00M |
| Interest Expense | $53.00M |
| Net Income | $256.00M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.82 |
| Shares Outstanding (Basic) | 309.50M |
| Shares Outstanding (Diluted) | 312.90M |
Key Highlights
- 1Revenue increased by 2% to $2.8 billion in Q3 2013 compared to Q3 2012, driven by a 3% organic revenue growth.
- 2Net income attributable to Aon shareholders rose to $256 million in Q3 2013, from $204 million in Q3 2012.
- 3Operating income from continuing operations increased to $364 million in Q3 2013, up from $339 million in the prior year period.
- 4Diluted earnings per share from continuing operations attributable to Aon shareholders increased to $0.82 in Q3 2013 from $0.62 in Q3 2012.
- 5Cash flow from operating activities for the first nine months of 2013 was $984 million, an increase of 13% from the prior year period.
- 6The company repurchased $1.0 billion of its shares in the first nine months of 2013 under its $5 billion share repurchase program.
- 7Restructuring costs of $30 million were recorded in Q3 2013 related to the Aon Hewitt Plan, with cumulative costs reaching $364 million as of September 30, 2013.