By Lisa Beilfuss
Marsh & McLennan Cos. said its profit grew 9% in the first
quarter as lower costs offset the effects of a stronger dollar and
lower interest rates.
The New York-based professional-services firm beat analysts'
earnings expectation, but revenue fell short.
Marsh generates more than half of its revenue outside of the
U.S. At the end of 2014, 34% of its top line came from Europe.
During the first quarter, the stronger dollar--which makes the
company's services more expensive abroad--paired with the effect of
low rates, shaved 12 cents a share off the company's bottom
line.
In the company's risk and insurance segment, the larger of its
two businesses, revenue in constant currency rose 3% to $1.8
billion. Operating income increased 8% to $533 million.
The company's consulting business reported a 5% revenue increase
to $1.4 billion. Operating income there edged 10% higher to $248
million.
In all, Marsh reported a profit of $482 million, or 88 cents a
share, up from a profit of $443 million, or 80 cents, a year
earlier. Excluding certain items, earnings rose to 91 cents a share
from 81 cents.
Revenue declined 1.5% to $3.2 billion but rose 4% in constant
currency.
Analysts were looking for 86 cents in earnings per share and
$3.4 billion in revenue.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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