Marsh & McLennan Companies, Inc. (NYSE: MMC), a global professional services firm offering advice and solutions in risk, strategy, and human capital, today reported financial results for the second quarter ended June 30, 2013.
Dan Glaser, President and CEO, said: “The Company continued to deliver strong financial results in the second quarter. Adjusted operating income grew 13%, reflecting excellent margin expansion in both the Risk and Insurance Services and Consulting segments. In the quarter, Marsh produced underlying revenue growth across all major geographies. Guy Carpenter generated impressive underlying revenue growth, driven by its U.S. and International operations. The Consulting segment, led by Mercer, produced strong growth in earnings with meaningful margin expansion,” concluded Mr. Glaser.
Consolidated revenue in the second quarter of 2013 was $3.1 billion, an increase of 2%, or 3% on an underlying basis compared with the second quarter of 2012. Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items, such as acquisitions, dispositions, and transfers among businesses. Operating income rose 12% to $577 million, compared with $518 million in the prior year period. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 13% in the second quarter to $591 million.
Net income attributable to the Company was $388 million, or $.69 per share, in the second quarter. This compares with $329 million, or $.59 per share, in the prior year. Adjusted earnings per share grew 18% to $.72, compared with $.61 last year.
For the first six months ended June 30, 2013, net income attributable to the Company was $801 million, or $1.44 per share, compared with $676 million, or $1.22 per share, in 2012. Adjusted earnings per share increased 17% to $1.45, compared with $1.24 last year.
Risk and Insurance Services
Risk and Insurance Services revenue increased to $1.7 billion in the second quarter of 2013, an increase of 3% on both a reported and underlying basis. Operating income increased 8% to $421 million, compared with $390 million in the prior year. Adjusted operating income increased 10% to $432 million. For the first six months of 2013, segment revenue was $3.5 billion, an increase of 4% from the prior year period, or 3% on an underlying basis. Operating income increased 11% to $889 million, compared with $802 million in 2012. Adjusted operating income rose 12% to $903 million, compared with $807 million last year.