MarshMac’s Q2 Earnings Fall to $65 Million on Unit Write-down

August 6, 2008

Marsh & McLennan Inc. posted a drop in second-quarter earnings on Wednesday, hurt by a $115 million write-down of goodwill for its risk consulting and technology division.

Net income fell 63 percent to $65 million, or 13 cents a share, from $177 million, or 31 cents a share, a year earlier.

The goodwill charge shaved 22 cents off earnings per share, the company said.

Excluding the write-down, discontinued operations and a charge for restructuring, earnings were 41 cents a share, according to Reuters Estimates, beating analysts’ average forecast of 35 cents.

Marsh shares fell 4.6 percent to $28 in trading before the market opened, after closing at $29.34 on Tuesday.

The New York-based company said consolidated revenue rose 9 percent to $3.05 billion, above the average estimate of $2.94 billion.

(Reporting by Lilla Zuill; Editing by Lisa Von Ahn)

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