Marsh & McLennan Posts Double-Digit Operating Earnings Growth

(RTTNews) - Marsh & McLennan Companies, Inc. (MMC) announced a profit for the latest quarter that dipped slightly from last year, as an expense to eliminate some of its debt weighed on the bottom line. However, the global professional services firm saw a double-digit rise in its operating profit, with earnings matching the projection of market analysts.

The company also saw a mild increase in revenues. Marsh & McLennan's bottom-line growth was fueled by strong growth in its consulting business, which saw double-digit advances in both earnings and revenue.

The company said net income attributable to the company came in at $294 million for the fourth quarter. This was down slightly from $303 million in the same period last year.

Operating income, which excludes certain one-time items, rose 10 percent to $536 million.

In October, Marsh & McLennan redeemed $230 million of 5.75% senior notes due in September 2015 and $400 million of 9.25% senior notes due in 2019. This led to an expense of $137 million.

The company's per-share profit remained steady at $0.54 per share. However, adjusted earnings per share grew 16 percent to $0.66, compared to $0.57 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share. Analysts' estimates typically exclude special items.

Consolidated revenue was $3.2 billion, an increase of 4 percent from last year. The top line was up 6% on an underlying basis.

The company's Risk and Insurance Services unit saw revenues rise 4 percent to $1.7 billion. Profit at the division climbed 9 percent on an operating basis, rising to $355 million.

Consulting revenue of $1.6 billion at the firm advanced 8 percent on an underlying basis, climbing to $1.6 billion. Adjusted operating income for the consulting division climbed 13 percent to $250 million.

Dan Glaser, President and CEO said of the results: "We're proud to have delivered another year of excellent results, with strong revenue and EPS growth and the return of capital to shareholders through double-digit growth in dividends and increased share repurchases."