US – Profit at Aon’s consulting business declined by nine percent in the second quarter, due to more “lower margin” contracts.
Chicago-based Aon said its pre-tax consulting income in the period declined to 21 million dollars from 23 million dollars a year before. “An increasing mix of lower margin outsourcing business factored into the comparisons,” it said, adding that it expected the profitability of these contracts to improve in the future.
Total consulting revenue rose 19% to 294 million dollars – aided by a 30% rise in human resource outsourcing revenue to 70 million dollars. Benefits, compensation, management and communications consulting revenues were up 15% at 22 million dollars
The firm’s consolidated revenue rose 15% to 2.4 billion dollars and its overall earnings were 146 million dollars compared to breakeven results a year earlier.
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