Aon plc (AON) has reported 10.46 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $291 million, or $1.09 a share in the quarter, compared with $325 million, or $1.19 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $436 million, or $1.63 a share compared with $380 million or $1.39 a share, a year ago. Revenue during the quarter grew 4.61 percent to $2,381 million from $2,276 million in the previous year period.
Total expenses move upOperating income for the quarter was $343 million, compared with $420 million in the previous year period. However, the adjusted operating income for the quarter stood at $530 million compared to $457 million in the prior year period. At the same time, adjusted operating margin improved 218 basis points in the quarter to 22.26 percent from 20.08 percent in the last year period.
"Our first quarter results reflect a strong start to the year driven by investments in our client-serving capabilities and operating model. Organic growth of 4% is the strongest start to the year since 2012, adjusted operating margins expanded by 220 basis points, and earnings per share from continuing operations increased 20% driven by effective operational and capital management," said Greg Case, president and chief executive officer. "With the recently completed divestiture of our outsourcing platform, we have taken another meaningful step in a decade long strategy that has produced exceptional results for clients and shareholders. As a leading global professional services firm, we are operating from a position of strength. With strong free cash flow generation and roughly $3 billion of incremental transaction proceeds, we have significant financial flexibility to invest in high-growth high-margin areas across our industry-leading portfolio, invest in our operating model and to return capital to shareholders."
Operating cash flow declinesAon plc has generated cash of $240 million from operating activities during the quarter, down 12.09 percent or $ 33 million, when compared with the last year period. Cash flow from investing activities was $13 million for the quarter as against cash outgo of $199 million in the last year period.
The company has spent $258 million cash to carry out financing activities during the quarter as against cash outgo of $4 million in the last year period.
Cash and cash equivalents stood at $451 million as on Mar. 31, 2017, down 3.01 percent or $14 million from $465 million on Mar. 31, 2016.
Assets grow, liabilities fall
Total assets increased 0.63 percent or $169 million to $26,982 million on Mar. 31, 2017. On the other hand, total liabilities were at $21,156 million as on Mar. 31, 2017, down 1.44 percent or $310 million from year-ago.
Return on assets stood at 0.98 percent in the quarter, down 0.44 from 1.42 percent in the last year period. At the same time, return on equity was at 4.99 percent in the quarter, down 1.08 from 6.08 percent in the last year period.
Investments stood at $200 million as on Mar. 31, 2017, down 65.93 percent or $387 million from year-ago.
Total debt was at $6,277 million as on Mar. 31, 2017, down 4.85 percent or $320 million from year-ago. Shareholders equity stood at $5,826 million as on Mar. 31, 2017, up 8.96 percent or $479 million from year-ago. As a result, debt to equity ratio went down 16 basis points to 1.08 percent in the quarter from 1.23 percent in the last year period.
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