Aon Beats Estimates While Expenses Rise
October 27 2017 - 12:38PM
Dow Jones News
By Allison Prang
Net income fell at Aon plc as the company reported rising costs
partly tied to restructing that outpaced sales growth.
The company reported profit attributable to shareholders of $185
million, down 42% from this time last year. On an adjusted basis,
earnings were $1.29 per share, slightly beating analysts' estimates
of $1.28.
Operating margin expanded 170 basis points to 20.3%, helped by
restructuring initiatives that saved the company $55 million.
Overall sales rose 6% to $2.34 billion, while expenses at the
company grew 13% driven by both amortization and impairment of
intangible assets and restructuring costs.
Organic revenue rose by 2%, largely helped by higher revenue
from Aon's reinsurance and retirement solutions businesses. Organic
revenue from commercial risk solutions, the company's biggest
revenue pool by dollars, declined by 1%.
The company also entered into agreements during the past quarter
to buy both the Townsend Group, a real-estate investment management
firm, and Unirobe Meeus Groep, a Netherlands-based insurance and
real-eastate brokerage company. Aon also repurchased $750 million
worth of its shares.
Shares of Aon were down 3.6% in morning trading.
Write to Allison Prang at allison.prang@wsj.com.
(END) Dow Jones Newswires
October 27, 2017 12:23 ET (16:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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