Marsh & McLennan posts loss on Kroll write-down
|
|
|
NEW YORK (Reuters) - Marsh & McLennan Cos , which runs one of the world's largest insurance brokerages, on Wednesday posted a first-quarter loss, hurt by a $425 million write-down of goodwill for its Kroll risk consulting and technology unit.The net loss totaled $210 million, or 40 cents per share, and compared with a profit of $268 million, or 47 cents, a year earlier.Excluding the charge, New York-based Marsh said profit declined 20 percent to $215 million, or 41 cents per share. Revenue increased 8 percent to $3.05 billion.Analysts on average expected profit of 44 cents per share on revenue of $2.94 billion, according to Reuters Estimates.Marsh "generated strong new business results and showed marked improvement in client revenue retention," Chief Executive Brian Duperreault said in a statement. "We continue to evaluate Kroll to identify those businesses that have the greatest growth potential."Duperreault was named chief executive in January, replacing the ousted Michael Cherkasky. Duperreault previously ran Ace Ltd , which Marsh helped found in 1985, for a decade.In March, Marsh moved to split Kroll's corporate advisory unit into a separate business. It subsequently turned away a private equity firm, BC Partners, that expressed interest in buying Kroll, a person familiar with the matter said.Quarterly revenue in risk and insurance operations rose 2 percent to $1.51 billion, as a 10 percent increase in new business production helped offset the impact of price competition in commercial property and casualty insurance.Consulting revenue rose 15 percent to $1.3 billion, while risk consulting and technology revenue increased 10 percent to $259 million.Marsh shares closed Tuesday at $27.58.(Reporting by Jonathan Stempel; Editing by Derek Caney)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Hershey, Nestle, sweeten war for Cadbury
Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
US stock sell-off on fears of weak recovery
New York - US stocks followed global markets in a broad decline amid investor fears over the world's uneasy recovery from recession. Major US stock indices fell about 1 per cent on average, following hefty declines in the DJ Euro Stoxx 50 and Japan's...
US leading economic indicator gains 0.3 per cent
Washington - A key measure of US economic performance gained in October, according to a private research group Thursday, signalling that a broader recovery may be taking hold. The New York-based Conference Board's Leading Economic Index added 0.3 per...
US stocks fall slightly on technology earnings
New York - US stocks posted modest losses Wednesday on poor profit forecasts from technology firms and a surprising dip in home construction. Earnings from Salesforce.com and Autodesk were worse than expected. Other technology shares losing ground in...
Obama acknowledges danger of double-dip recession if deficit grows
Washington - President Barack Obama said Wednesday he was mindful of the dangers brought on by the country's skyrocketing budget deficit, warning that too much spending could lead the United States into another recession. Obama, who has taken heavy c...
|
|
|
|
|
|
|
|
