MMC Income Up 13%; Revenue Flat
NU Online News Service, April 23, 11:55 a.m. EST?Marsh & McLennan Companies Inc. reported a 13 percent increase in net income for the first quarter while revenues remained unchanged.
MMC in New York said today that net income for the first quarter of 2002, ending March 31, grew $49 million, from $369 million for 2001 to $418 million 2002.
Revenues remained unchanged at $2.6 billion.
Jeffrey W. Greenberg, MMC's chairman, said in a statement that its insurance brokerage firm, Marsh, experienced "excellent results" with growing worldwide demand for services. Both the consulting subsidiary, Mercer, and the investment arm, Putnam, "are managing expenses in a disciplined way while continuing to invest for future growth."
Marsh's revenue rose 9 percent to $1.5 billion for the first quarter of 2002 from $1.4 billion for the same period in 2001. MMC reported that operating income rose 21 percent to $462 million for the first quarter of 2002 from $381 million in 2001.
Putnam's revenues declined 14 percent to $594 million in 2002 compared to $690 million for the first period in 2001. Operating income declined 19 percent, going from $217 million in the first quarter of 2001 to $175 million in 2002.
Mercer's revenues also saw a decline, but operating income was up. Revenues dropped 4 percent to $565 million in the first quarter of 2002 from $587 million in 2001. Operating income rose 6 percent, growing from $70 million in the first quarter of 2001 to $74 million in 2002.
MMC reported earnings per share for the first quarter rose 16 percent to $1.47 from $1.27 in 2001.
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