A summary of the latest quarterly earnings and M&A announcements, aggregated by HRmarketer.com, are below - the full report can be accessed (for free) at HRmarketer.com's site in the HR Marketplace Earnings and M&A News:
- Adecco (ADO): Reported its profit rose 23 percent for the fourth quarter, helped by a tax benefit and a strong performance in France. The company earned 212 million euros ($280 million) in the period, compared with 171 million euros for the same quarter last year. Sales rose 8 percent to 5.3 billion euros ($7 billion) from 4.89 billion euros for the same period last year.
- Automatic Data Processing Inc. (ADP): Reported its fiscal second-quarter profit rose as sales increased. For the quarter ended Dec. 31, the company earned $297.7 million, or 54 cents per share, up 15 percent from $259.7 million, or 45 cents per share, during the same period in the previous year. The most recent quarter's results included expenses from a spinoff, totaling $5 million, or a penny per share, which will be reclassified as discontinued operations.
- Aetna Inc. (AET): Reported fourth-quarter 2006 operating earnings, excluding prior-period favorable reserve development and a previously announced severance charge, of $0.76 per share. Including the severance charge of $0.03 per share, operating earnings, excluding reserve development, were $0.73 per share, an increase of 18 percent compared to the prior-year quarter. Prior-period favorable reserve development was $0.05 per share. The increase in operating earnings reflects revenue growth from year-over-year membership growth and premium and fee rate increases, as well as solid underwriting results and continued general and administrative expense efficiencies. Fourth-quarter net income was $0.80 per share, an increase of 14 percent over the prior-year quarter.
- Aflac (AFL): Reported its fourth quarter results of total revenues were $3.7 billion during the fourth quarter of 2006, compared with $3.6 billion a year ago. Net earnings were $332 million, or $.67 per diluted share, compared with $364 million, or $.72 per share, a year ago. The decline in net earnings primarily resulted from lower realized investment gains, which were $3 million, or $.01 per diluted share in the fourth quarter of 2006, compared with $68 million, or $.14 per share, a year ago.
- Aon Corp. (AOC): Reported a flat fourth-quarter profit, as higher revenue was weighed down by losses from discontinued operations. The company also disclosed it has uncovered some incorrect measurement dates for past stock options grants. Net income was flat at $224 million, but per-share earnings rose to 68 cents from 65 cents a year ago because the latest quarter had fewer shares outstanding. Earnings from continuing operations soared 85 percent to $189 million, or 58 cents per share. Excluding certain items, income from continuing operations in the latest quarter was 67 cents per share, compared with 47 cents a year earlier.
Previous Quarter’s M&A Activity:
- Albany announced the acquisition of eWork Services, Inc., a specialist in contractor payrolling services and 1099 compliance. The acquisition bolsters Albany’s plans for expansion into the U.S. market. Albany provides Employer of Record services for contract workers and contingent workforce management solutions worldwide. Albany acts as a traditional employer—hiring the workers as their own W2 employees, processing payroll, providing benefits and HR support—for short-term projects or assignments with contract workers. Serving companies in more than 65 countries, Albany is an expert in international tax and labor law, including U.S. federal and state regulations.
- Arthur J. Gallagher & Co. announced the acquisition of Financial Profiles, Inc. located in Coral Springs, Florida. Terms of the transaction were not disclosed. Founded in 1981, Financial Profiles, Inc. is a specialty retail life insurance agency. They specialize in life policies, life settlement, premium financing and estate planning for their family-clients primarily in the Southeast. Karen Tharp, James Tharp and their associates will continue to operate in their current location under the direction of David Ziegler, Executive Vice President - Eastern Region of Gallagher Benefit Services, Inc., a subsidiary of Arthur J. Gallagher & Co.
- Arthur J. Gallagher & Co. announced the acquisition of Elite Benefits Insurance Marketing Services, Inc. of Irvine, California. Terms of the transaction were not disclosed. Founded in 1987, Elite Benefits Insurance Marketing Services, Inc. offers a wide-range of employee benefit consulting and brokerage services that include strategic analysis, plan design, legislative compliance, human resource services and employee communications support.
- Automatic Data Processing ADP announced the purchase of Intuit's outsourced payroll division, the 3rd largest payroll provider in the nation. With this recent acquisition, many question the impact it will have on the industry whether or not it signifies a growing trend. The shareholder shuffle does not end there. Reuters reported on February, 23rd 2007 that Ceridian Corporation, the nation's 4th largest payroll service provider, put themselves up for sale. The article explains that there is a battle brewing internally over whether or not they should sell the corporation in pieces or as whole.
- Comdata Corporation, a wholly owned subsidiary of Ceridian Corporation, announced it has acquired Inter-Tax, Inc. a leading provider of paperless fuel tax services. The acquisition creates North America’s most comprehensive suite of regulatory compliance solutions for the ground transportation industry.
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