Summary
Marsh & McLennan Companies (MMC) reported a strong third quarter for 2011, with consolidated revenue up 11% year-over-year to $2.8 billion, driven by robust underlying revenue growth of 5% across its Risk & Insurance Services and Consulting segments. Operating income saw a significant increase of 30% to $310 million, reflecting improved profitability in both segments. The company also highlighted a substantial increase in operating cash flow to $995 million for the first nine months of 2011, up from $50 million in the prior year period. Key financial actions during the quarter included the repurchase of common stock and the early extinguishment of a portion of its outstanding debt, demonstrating active capital management. The company also continued its strategy of targeted acquisitions within both its Risk and Insurance Services and Consulting segments to enhance its market position and service offerings. Overall, the results indicate a positive trajectory for MMC, with strong revenue growth and enhanced operational efficiency.
Financial Highlights
50 data points| Revenue | $2.81B |
| Operating Expenses | $2.50B |
| Operating Income | $310.00M |
| Interest Expense | $49.00M |
| Net Income | $135.00M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 540.00M |
| Shares Outstanding (Diluted) | 549.00M |
Key Highlights
- 1Consolidated revenue increased 11% to $2.8 billion in Q3 2011, with underlying revenue growth of 5%.
- 2Operating income rose 30% to $310 million in Q3 2011, indicating improved profitability.
- 3Risk and Insurance Services revenue grew 11% (5% underlying), led by Marsh's strong performance in Latin America and Asia Pacific.
- 4Consulting segment revenue also increased 11% (6% underlying), with solid contributions from both Mercer and Oliver Wyman.
- 5Operating cash flow for the first nine months of 2011 was $995 million, a significant improvement from $50 million in the prior year.
- 6The company actively managed its capital structure by repurchasing $12.2 million shares of common stock for $361 million year-to-date and completing debt extinguishment activities.
- 7Acquisition activity remained consistent, with several strategic acquisitions made in both the Risk and Insurance Services and Consulting segments.