Summary
Aon plc reported total revenue of $2.79 billion for the three months ended March 31, 2016, a slight decrease of 2% compared to the same period in the prior year. This decline was primarily attributed to unfavorable foreign currency exchange rates and net divestitures, though partially offset by a 3% organic revenue growth. Net income attributable to Aon shareholders was $315 million, or $1.15 per diluted share, down 4% from $328 million ($1.14 per diluted share) in the first quarter of 2015. Despite the revenue dip, operating income saw a modest increase to $450 million from $441 million, leading to an improved operating margin of 16.1% compared to 15.5% in the prior year, driven by expense discipline and organic growth. The company continued its robust share repurchase program, repurchasing approximately $750 million of its shares in the quarter.
Financial Highlights
51 data points| Revenue | $2.28B |
| Operating Expenses | $1.86B |
| Operating Income | $420.00M |
| Interest Expense | $69.00M |
| Net Income | $325.00M |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.19 |
| Shares Outstanding (Basic) | 271.70M |
| Shares Outstanding (Diluted) | 273.70M |
Key Highlights
- 1Total revenue decreased by 2% to $2.79 billion, primarily due to foreign currency headwinds and divestitures, partially offset by 3% organic growth.
- 2Net income attributable to Aon shareholders declined by 4% to $315 million, with diluted EPS at $1.15.
- 3Operating income increased by 2% to $450 million, resulting in an improved operating margin of 16.1% from 15.5% year-over-year.
- 4The company executed a significant share repurchase program, buying back $750 million worth of shares in the first quarter of 2016.
- 5Cash flow from operations decreased by 8% to $273 million, impacted by higher income tax payments.
- 6Long-term debt increased by $897 million to $6.6 billion, mainly due to the issuance of new senior notes.
- 7Both the Risk Solutions and HR Solutions segments experienced varying impacts from foreign currency, divestitures, and organic growth, with Risk Solutions showing improved operating margin while HR Solutions saw a slight decline.