Second-quarter numbers at Marsh & McLennan Companies Inc. showed a rise in consolidated revenues and a better net income, creating a feeling at Putnam Investments parent company that things may be getting on track. However, Putnam itself is still trying to right its ship.
Net income rose 7% to $389 million at MMC in the second quarter over the year ago period. Consolidated revenues jumped 9% for the first six-months of the year from $5.7 billion to $6.2 billion. However, Putnams individual stats were a drag on the firms overall numbers. Putnam saw a 10% drop in revenues to $446 million during the second quarter. "Putnams business is not where we want it to be," said MMC Chairman and CEO Jeffrey W. Greenberg. However, he did say that he saw some encouraging signs from the scandal-marred fund company. "It has reduced its costs, streamlined its management, and made a number of key promotions and new hires in the investment division," said Greenberg.
Although Putnam received a $25 million credit from its settlement with former CEO Larry Lasser, the money was more than wiped out by $27 million worth of severance and $34 million in miscellaneous namely legal, auditing and regulatory fees.