Summary
Aon plc's third-quarter 2015 report (filed October 29, 2015) reveals a mixed financial performance, with revenues experiencing a year-over-year decline primarily due to unfavorable foreign currency exchange rates, despite underlying organic growth. While operating expenses also decreased due to currency impacts and cost management, net income attributable to Aon shareholders saw a decline for both the quarter and the nine-month period. The company continued its active share repurchase program, demonstrating a commitment to returning capital to shareholders. Despite revenue headwinds and a decrease in net income, Aon reported positive cash flow from operations and an increase in free cash flow, indicating solid operational liquidity. The company is actively managing its risks through derivative instruments and maintains a strong liquidity position through operational cash flows and available credit facilities.
Financial Highlights
52 data points| Revenue | $2.75B |
| Operating Expenses | $2.33B |
| Operating Income | $423.00M |
| Interest Expense | $72.00M |
| Net Income | $303.00M |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.04 |
| Shares Outstanding (Basic) | 280.90M |
| Shares Outstanding (Diluted) | 283.80M |
Key Highlights
- 1Revenue for the third quarter of 2015 decreased by 5% to $2.7 billion, primarily due to a 7% unfavorable impact from foreign currency exchange rates, though organic revenue grew by 2%.
- 2Net income attributable to Aon shareholders decreased by 5% to $295 million ($1.04 per diluted share) for the third quarter of 2015 compared to the same period in 2014.
- 3For the nine months ended September 30, 2015, net income attributable to Aon shareholders decreased by 15% to $801 million ($2.80 per diluted share) compared to the prior year.
- 4Operating expenses decreased by 5% in the third quarter of 2015, driven by favorable foreign currency impacts and expense discipline.
- 5The company repurchased 6.3 million shares for approximately $600 million in the third quarter of 2015, reflecting a continued focus on capital return.
- 6Cash flow from operating activities increased by $192 million to $1,075 million for the first nine months of 2015, indicating improved operational cash generation.
- 7Free cash flow increased by 21% to $850 million for the first nine months of 2015, demonstrating strong cash generation after capital expenditures.