Early Access

10-QPeriod: Q2 FY2020

MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q2 Ended Jun 30, 2020

Filed July 31, 2020For Securities:MRSHMMC

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported its Q2 2020 financial results, showing resilience amidst the COVID-19 pandemic. The company generated $4.19 billion in revenue for the quarter, a slight decrease of 4% compared to the prior year, primarily impacted by foreign currency translation and dispositions, while underlying revenue showed a modest decrease of 2%. Despite the revenue dip, operating income increased by 30% to $885 million, driven by significant expense reductions, including lower JLT integration costs and COVID-19 related cost containment measures. Diluted earnings per share saw a substantial rise to $1.12 from $0.65 in the prior year. For the first six months of 2020, consolidated revenue increased 5% to $8.84 billion, with underlying revenue growing 2%. Operating income for the period also saw robust growth, up 21% to $1.96 billion. The company's proactive management of expenses, including substantial savings from the JLT integration and cost-saving initiatives, contributed to the improved profitability. Marsh & McLennan maintained a strong liquidity position, ending the period with $1.71 billion in cash and cash equivalents and $11.99 billion in long-term debt.

Financial Highlights

51 data points
Beta

Revenue

$4.19B

Net Income

$580.00M

0.1% Net Margin

EPS (Diluted)

$1.12

Total Assets

$32.17B

Cash & Equivalents

$1.71B

Free Cash Flow

$1.13B

Financial Statements
Beta
Revenue$4.19B
Operating Expenses$3.30B
Operating Income$885.00M
Interest Expense$132.00M
Net Income$580.00M
EPS (Basic)$1.13
EPS (Diluted)$1.12
Shares Outstanding (Basic)506.00M
Shares Outstanding (Diluted)511.00M

Key Highlights

  • 1Consolidated revenue for Q2 2020 was $4.19 billion, a 4% decrease year-over-year, with underlying revenue down 2%.
  • 2Operating income increased significantly by 30% to $885 million in Q2 2020, driven by expense management and reduced integration costs.
  • 3Diluted Earnings Per Share (EPS) rose to $1.12 in Q2 2020, up from $0.65 in the prior year's quarter.
  • 4For the first six months of 2020, consolidated revenue grew 5% to $8.84 billion, with underlying revenue up 2%.
  • 5Operating income for the first six months of 2020 increased by 21% to $1.96 billion.
  • 6The company maintained a strong cash position, with $1.71 billion in cash and cash equivalents at June 30, 2020.
  • 7JLT integration and restructuring costs were significantly lower in Q2 2020 compared to the prior year, contributing to improved profitability.

Frequently Asked Questions