3rd Quarter & 9 Mths - 'Strong Results
MARSH AND MCLENNAN CO INC
26 October 1999
William Pitt Jim Fingeroth
Marsh & McLennan Cos. Kekst and Company
(212) 345-5079 (212) 521-4819
MARSH & McLENNAN COMPANIES REPORTS STRONG THIRD QUARTER
AND NINE MONTHS RESULTS
Earnings Per Share Rises 17 Percent for Quarter
NEW YORK, NEW YORK, October 26, 1999-Marsh & McLennan Companies, Inc. (MMC)
today reported that for the third quarter ended September 30, 1999, revenue
increased 30 percent to $2.2 billion from $1.7 billion in 1998. Net income
rose 20 percent to $223 million from $186 million, and earnings per share
increased 17 percent to $.81 from $.69 in 1998.
For the nine months ended September 30, 1999, MMC's revenue reached $6.8
billion, up 30 percent from $5.2 billion for the same period last year. Net
income increased 20 percent to $731 million from $610 million in 1998, and
earnings per share grew 17 percent to $2.66 from $2.28 in 1998, excluding a
special charge taken in the second quarter of this year.
Commenting on the results, A.J.C. Smith, chairman of MMC, said, 'We are very
pleased with the performance of each of our businesses. Putnam Investments
had another solid quarter, ending with $318 billion in assets under
management at September 30, up from $253 billion for the same period last
year. Mercer Consulting Group's results were impressive for both the
quarter and nine months, reflecting strong revenue growth and increased
profitability. Marsh performed well, continuing to manage its business
successfully and integrate Sedgwick into its operations as competitive
market conditions persisted. We are beginning to see the positive effects
of consolidation savings in our earnings, which should continue to be
realized over the next 18 months.'
MMC is a global professional services firm with annual revenues exceeding $7
billion. It is the parent company of Marsh, the world's leading risk and
insurance services firm; Putnam Investments, one of the largest investment
management companies in the United States; and Mercer Consulting Group, a
major global provider of consulting services. More than 50,000 employees
provide analysis, advice and transactional capabilities to clients in over
100 countries. Its stock (ticker symbol: MMC) is listed on the New York,
Chicago, Pacific and London stock exchanges. MMC's Web site address is
www.mmc.com.
This press release contains certain statements relating to future results,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such statements may include,
without limitation, discussions concerning revenue and expense growth, cost
savings and efficiencies expected from the integration of Johnson & Higgins
and Sedgwick Group plc, and market and industry conditions. Actual results
may differ from those contemplated as a result of certain risks and
uncertainties, including but not limited to changes in general worldwide and
national economic conditions, competitive conditions and pricing pressures,
the failure to successfully integrate the risk and insurance services and
consulting businesses of Sedgwick Group plc (including the achievement of
synergies and cost reductions), level of worldwide and national equity and
fixed income markets, premium rate levels in the global property and
casualty insurance markets, regulatory actions or developments, the
uncertainties of litigation, MMC or its significant business partners not
being Year-2000 compliant on a timely basis, as well as other risks and
uncertainties detailed from time to time in the Company's Securities and
Exchange Commission filings. Please refer to Marsh & McLennan Companies'
1997 Annual Report on Form 10-K for 'Information Concerning Forward-looking
Statements,' its reports on Form 8-K and quarterly reports on Form 10-Q.
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share figures)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
_______________ _______________
1999 1998 1999 1998
_____ _____ _____ _____
Revenue:
Risk and Insurance Services $1,055 $764 $3,403 $2,418
Investment Management 673 568 1,963 1,713
Consulting 499 387 1,457 1,114
_____ _____ ______ ______
Total Revenue 2,227 1,719 6,823 5,245
_____ _____ ______ ______
Expense:
Compensation and Benefits 1,118 860 3,413 2,577
Other Operating Expenses 684 524 2,035 1,583
Special Charge - - 84 -
______ _____ ______ ______
Total Expense 1,802 1,384 5,532 4,160
______ _____ ______ ______
Operating Income 425 335 1,291 1,085
Interest Income 6 5 17 17
Interest Expense (59) (33) (174) (94)
______ _____ ______ ______
Income Before Income Taxes 372 307 1,134 1,008
Income Taxes 149 121 455 398
______ _____ ______ ______
Net Income $223 $186 $679 $610
====== ===== ====== ======
Basic Net Income Per Share $0.84 $0.73 $2.60 $2.38
====== ===== ====== ======
Diluted Net Income Per Share $0.81 $0.69 $2.47 $2.28
====== ===== ====== ======
Diluted Net Income Per Share
Excluding Special Charge $0.81 $0.69 $2.66 $2.28
====== ===== ====== ======
Average Number of
Shares Outstanding - Basic 264 256 262 256
====== ===== ====== ======
Average Number of
Shares Outstanding - Diluted 273 263 270 264
====== ===== ====== ======
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