Broker to make $240 million savings by 2010
Aon Corporation today reported results for the third quarter ended September 30, 2007.
Revenue increased 11% to $2.4 billion with organic revenue growth of 6%, while EPS from continuing operations more than doubled to $0.59.
Third quarter 2007 highlights included:
• EPS from continuing operations, excluding certain items, increased 67% to $0.70
• Risk and Insurance Brokerage Services pretax margin was 16.4% and the adjusted pretax margin, excluding certain items, increased 400 basis points to 17.5% from 13.5%
• Consulting pretax margin was 11.7% and the adjusted pretax margin, excluding certain items, increased 440 basis points to 12.0% from 7.6%
• Repurchased 2.3 million shares for $100 million
• Subsequent to the third quarter, announced 2007 global restructuring program that is expected to result in approximately $360 million of charges and $240 million of annualized savings by 2010
• Subsequent to the third quarter, announced Christa Davies will join Aon as Executive Vice President, Global Finance in November and will be appointed Chief Financial Officer in March 2008
“Our results continue to demonstrate significant progress as organic growth was six percent, adjusted operating margin increased 370 basis points with significant improvement in our Brokerage and Consulting segments, and adjusted earnings per share increased 67 percent”, said Greg Case, president and chief executive officer, Aon Corporation.
“Despite soft market conditions, we are making investments that further enable us to best serve our clients, we are managing expenses as we announced a new restructuring program expected to deliver $240 million of annualized savings by 2010, and we repurchased $100 million of stock during the quarter. All these actions support our continued commitment to delivering distinctive client value, operational excellence and long-term shareholder value creation.”
Total revenue increased 11% to $2.4 billion with organic revenue growth of 6%. Total expenses increased 3% or $66 million to $2.1 billion including a $70 million unfavourable impact from foreign currency translation.
