Marsh & McLennan Companies, Inc. (NYSE:MMC), a global professional services firm offering clients advice and solutions in risk, strategy, and human capital, today reported financial results for the first quarter ended March 31, 2014.
President and CEO Dan Glaser said: "We produced double-digit earnings growth and meaningful margin expansion in the first quarter, with adjusted earnings per share rising 11% to $.81. This represents a strong start to 2014 and continues the excellent momentum we have achieved over the past several years. On a consolidated basis, underlying revenue growth was 4%, adjusted operating income rose 11%, and the adjusted margin increased 120 basis points to 20.9%, reflecting continued margin expansion in both the Risk and Insurance Services and Consulting segments."
Consolidated revenue in the first quarter of 2014 was $3.3 billion, an increase of 4% on both a reported and underlying basis, compared with the first quarter of 2013. 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 11% to $673 million, compared with $607 million in the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, also rose 11% to $682 million.
Net income attributable to the Company was $443 million, or $.80 per share, in the first quarter. This compares with $413 million, or $.74 per share, in the prior year. Earnings per share from continuing operations rose 11% to $.80, compared with $.72 last year. Adjusted earnings per share also increased 11% to $.81, compared with $.73 last year.
Risk and Insurance Services
Risk and Insurance Services revenue was $1.8 billion in the first quarter of 2014, an increase of 4%, or 3% on an underlying basis. Operating income rose 5% to $493 million, compared with $468 million in the prior year. Adjusted operating income increased 6% to $500 million.