Summary
Marsh & McLennan Companies, Inc. (MRSH) reported solid financial results for the nine months ended September 30, 2013, with revenue increasing by 3% to $9.15 billion and net income attributable to the company rising by 15% to $1.05 billion. Diluted earnings per share also saw a healthy increase. The company's core businesses, Risk and Insurance Services (Marsh, Guy Carpenter) and Consulting (Mercer, Oliver Wyman), demonstrated revenue growth, with Risk and Insurance Services revenue up 4% and Consulting revenue up 1% year-to-date. This growth was driven by underlying business performance, with currency fluctuations having a minor negative impact. The company continued its strategic acquisition activity, completing six acquisitions in the first nine months of 2013 to enhance its service offerings and geographic reach. Management highlighted positive operating income trends, with the Consulting segment showing a significant 13% increase in operating income for the third quarter. Despite some pressures on expenses, such as higher incentive compensation and pension costs, the company managed to improve its operating income margin in the Consulting segment. Financially, the company maintained a strong liquidity position, with significant operating cash flows and available credit facilities. Shareholder returns were supported by consistent dividend payments and active share repurchase programs.
Financial Highlights
51 data points| Revenue | $2.93B |
| Operating Expenses | $2.53B |
| Operating Income | $404.00M |
| Interest Expense | $40.00M |
| Net Income | $253.00M |
| EPS (Basic) | $0.46 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 549.00M |
| Shares Outstanding (Diluted) | 558.00M |
Key Highlights
- 1Revenue for the nine months ended September 30, 2013, increased by 3% to $9.15 billion compared to the same period in 2012.
- 2Net income attributable to the company grew by 15% to $1.05 billion for the nine-month period, resulting in a strong increase in diluted EPS.
- 3The Risk and Insurance Services segment reported a 4% increase in revenue year-to-date, driven by solid performance at Marsh and Guy Carpenter.
- 4The Consulting segment experienced a 1% increase in revenue year-to-date, with Mercer showing 4% underlying revenue growth, despite a slight decline at Oliver Wyman.
- 5The company actively pursued its growth strategy through six strategic acquisitions during the first nine months of 2013.
- 6Operating income increased to $1.59 billion for the nine-month period, reflecting improved profitability across both business segments.
- 7The company generated $575 million in operating cash flow for the nine months ended September 30, 2013, indicating strong operational cash generation.