Marsh & McLennan Starts Its Engines: Fool by Numbers

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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:

• Is the Damage Control Ending for Marsh Mac?
• Marsh Mac Punts Putnam
• Legg Mason: Could the Price Be Right?

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.