US corporate results round-up
Avon’s profit sinks as reps fall
AVON reported a two per cent drop in quarterly sales yesterday after seeing the number of active sales representatives fall and the company dealt with higher costs.
Avon, the world’s largest direct seller of cosmetics, also said net income fell 81.5 per cent in the first quarter, hurt by more reps leaving.
The company, which last month rebuffed a $10bn takeover bid from smaller rival Coty reported a net profit of $26.5m on revenue of $2.58bn (£1.59bn) in the quarter ended 31 March.
Sales weak for Office Depot
OFFICE Depot swung back into a quarterly profit yesterday as the second-largest US office supply retailer kept a tight lid on costs to offset weak sales.
Net earnings were $41m (£25.3m), or 14 cents a share, in the first quarter, compared with a year-earlier loss of $15m, or five cents a share.
Excluding one-time charges, debt costs and a favourable pension settlement, the profit was five cents a share, in line with the analysts’ average forecast. Sales fell 3.4 per cent to $2.87bn.
Income up at Marsh & McLennan
GLOBAL professional services firm Marsh & McLennan yesterday posted a higher than expected quarterly profit, helped by continued growth in its core insurance segment.
First-quarter net income from continuing operations rose to $354m (£218.3m), from $319m a year earlier. Revenue rose to $3.05bn.
Revenues rose 6.9 per cent to $1.75bn in the company’s risk and insurance division, home to the Marsh brokerage business, while revenue from consulting was up four per cent at $1.3bn.
Tax lifts Thomson Reuters
NEWS provider Thomson Reuters said yesterday its revenue for the first quarter of 2012 grew by four per cent, contributing to a growth in underlying operating profit of two per cent.
First-quarter revenue from ongoing businesses grew four per cent before currency changes to $3.19bn (£1.97bn), while underlying operating profit rose two percent to $545m.
Revenues were particularly strong in its tax and accounting practice, thanks to acquisitions. The governance, risk and compliance business also did well.