Summary
Marsh & McLennan Companies, Inc. (MMC) reported a net loss of $193 million for the second quarter of 2009, a significant downturn from a net income of $65 million in the same period of the previous year. This loss was heavily impacted by a substantial $315 million goodwill impairment charge in the Risk Consulting & Technology segment, alongside a $115 million charge in the prior year's quarter. Despite the net loss, excluding impairment charges, operating income remained relatively stable year-over-year, indicating underlying business resilience. Revenue declined across most segments, particularly in Consulting and Risk Consulting & Technology, reflecting the challenging economic environment. However, the Risk and Insurance Services segment showed a flat underlying revenue performance and improved operating margins, driven by Guy Carpenter's new business growth and Marsh's stable performance. The company is actively managing its expenses and implemented restructuring actions to reduce costs, which are expected to yield significant annualized savings.
Financial Highlights
47 data points| Revenue | $2.47B |
| Operating Expenses | $2.18B |
| Operating Income | $294.00M |
| Interest Expense | $65.00M |
| Net Income | -$190.00M |
| EPS (Basic) | $-0.36 |
| EPS (Diluted) | $-0.37 |
| Shares Outstanding (Basic) | 522.00M |
| Shares Outstanding (Diluted) | 523.00M |
Key Highlights
- 1Reported a net loss of $193 million for Q2 2009, compared to a net income of $65 million in Q2 2008, primarily due to a $315 million goodwill impairment charge.
- 2Consolidated revenue decreased by 13% year-over-year in Q2 2009, reflecting challenging economic conditions across segments.
- 3Excluding impairment charges, operating income was stable year-over-year ($294 million in Q2 2009 vs. $295 million in Q2 2008), suggesting underlying business resilience.
- 4The Risk and Insurance Services segment demonstrated stable underlying revenue and improved operating margins, with Guy Carpenter showing strength in new business.
- 5Significant restructuring actions were undertaken, resulting in the elimination of approximately 875 positions and expected annualized cost savings of $110 million.
- 6The company's liquidity remains adequate, with no borrowings outstanding under its $1.2 billion revolving credit facility as of June 30, 2009.