On Feb. 13, professional services firm Marsh & McLennan (NYSE:MMC) released fourth-quarter earnings for the period ended Dec. 31.

  • Net revenues increased by 9% to $3.06 billion, led by strong performance from its insurance, risk management, and consulting businesses. Margin improvements and some one-time items resulted in explosive net profit growth.
  • The company raised its quarterly dividend to $0.19, an increase of 12%.
  • The company announced the sale of Putnam, which will enhance its "financial flexibility," according to CEO Michael G. Cherkasky.
  • Marsh & McLennan carries a two-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$3,063

$2,811

9.0%

Net Profit*

$223

$17

1,211.8%

EPS

$0.39

$0.03

1,200.0%

Diluted Shares

561

555

1.1%

*Net income from continuing operations.

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Operating Margin

13.0%

4.1%

8.8

Net Margin

7.3%

0.6%

6.7

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$2,089

$2,020

3.4%

Accounts Rec.

$3,008

$2,730

10.2%

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable*

$2,477

$1,733

42.9%

Long-Term Debt

$3,860

$5,044

(23.5%)

*Accounts payable includes accrued liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights
No data available. Boo!

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Related Companies:

  • Brown & Brown (NYSE:BRO)
  • Erie Indemnity (NASDAQ:ERIE)
  • Willis (NYSE:WSH)
  • Aon (NYSE:AOC)

Related Foolishness:

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