Marsh & McLennan Revenue Growth Tops Expectations
February 04 2016 - 08:40AM
Dow Jones News
Professional-services firm Marsh & McLennan Companies Inc.
on Thursday reported stronger-than-expected revenue growth for its
fourth quarter, even as foreign currency swings ate into its growth
abroad.
Marsh & McLennan is the parent of a number of companies,
including the insurance-brokerage Marsh and consulting firm
Mercer.
The company generates much of its revenue overseas, which has
made it vulnerable to fluctuations in foreign currencies. Currency
swings shaved 6% off its revenue growth in the quarter.
In all, for the period ended Dec. 31, profit rose to $375
million, or 71 cents a share, from $294 million, or 54 cents a
share a year earlier.
Analysts polled by Thomson Reuters had forecast revenue of 71
cents a share.
The prior-year period included a $137 million
debt-extinguishment cost, which affected the year-over-year
comparison.
Revenue rose 2.8% to $3.34 billion, while analysts had expected
revenue of $3.26 billion.
Core revenue, which excludes the impact of currency and
acquisitions, grew 5%.
By that same measure, revenue in its risk and reinsurance
business, grew 4%, with strong growth in Latin America and the Asia
Pacific region.
Consulting revenue grew 5% on a core basis, driven by 8% growth
in its health business and 7% growth in its talent business.
Shares of Marsh & McLennan, inactive premarket, are down
4.7% in 2016.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 04, 2016 08:25 ET (13:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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