Aon Corporation (AON) has reported a 14.04 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $502 million, or $1.87 a share in the quarter, compared with $584 million, or $2.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $686 million, or $2.56 a share compared with $633 million or $2.27 a share, a year ago.
Revenue during the quarter went up marginally by 1.06 percent to $3,323 million from $3,288 million in the previous year period.
Total expenses move up marginally
Operating income for the quarter was $629 million, compared with $717 million in the previous year period.
However, the adjusted operating income for the quarter stood at $872 million compared to $794 million in the prior year period. At the same time, adjusted operating margin improved 209 basis points in the quarter to 26.24 percent from 24.15 percent in the last year period.
Meanwhile, income from fees and commission for the quarter moved up marginally by 1.06 percent or $35 million to $3,323 million.
"We ended 2016 in a strong position, driving positive performance across each of our key metrics for both the fourth quarter and the full year, highlighted by growth across every major business and record operating margin in Risk Solutions," said Greg Case, president and chief executive Officer. "Substantial investments in high-growth areas of our industry-leading platform, improved operational performance, and record free cash flow generation of more than $2.1 billion, continue to position the firm for increased shareholder value creation over the long-term."
Operating cash flow improves
Aon Corp has generated cash of $2,326 million from operating activities during the year, up 15.78 percent or $317 million, when compared with the last year.
The company has spent $954 million cash to meet investing activities during the year as against cash outgo of $138 million in the last year.
The company has spent $1,286 million cash to carry out financing activities during the year as against cash outgo of $1,689 million in the last year period.
Cash and cash equivalents stood at $431 million as on Dec. 31, 2016, up 12.24 percent or $47 million from $384 million on Dec. 31, 2015.
Assets fall, liabilities grow
Total assets decreased 1 percent or $268 million to $26,615 million on Dec. 31, 2016.
Return on assets stood at 1.91 percent in the quarter, down 0.26 from 2.17 percent in the last year period. At the same time, return on equity was at 9.07 percent in the quarter, down 0.40 from 9.48 percent in the last year period.
Investments come down
Investments stood at $290 million as on Dec. 31, 2016, down 18.54 percent or $66 million from year-ago.
Total debt was at $6,205 million as on Dec. 31, 2016, up 8.86 percent or $505 million from year-ago. Shareholders equity stood at $5,532 million as on Dec. 31, 2016, down 8.70 percent or $527 million from year-ago. As a result, debt to equity ratio went up 20 basis points to 1.12 percent in the quarter from 0.92 percent in the last year period.
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