Aon grows profit on consulting, sale of units

Aon Corp. said Thursday its first-quarter profit rose 2 percent on strong growth in its consulting business.

The Chicago-based company's net income rose to $218 million, or 68 cents per share in the first three months of the year, up from $213 million, or 66 cents per share, for the same period last year Insurance brokerage giant.

Net income from continuing operations rose 8 percent to $179 million, or 56 cents per share, compared with $165 million, or 51 cents per share, for the prior-year quarter, the company said.

Aon's recent sale of Combined Insurance Company of America and Sterling Life Insurance generated $2.7 billion of after-tax proceeds, the company said. Total revenue increased 7 percent to $1.9 billion with organic revenue growth of 2 percent.

The company expects savings of $50 million to $70 million in 2008 from its corporate restructuring. Savings in 2009 will be approximately $175 million to $200 million, and 2010 savings will be $240 million.

Net income from continuing operations per share, excluding certain items, increased 25 percent to 71 cents compared with 57 cents for the prior-year quarter.

The company was expected to make 61 cents a share, according to the average estimate of 12 analysts in a FactSet survey.

Shares of Aon closed up 3.1 percent Thursday at $46.79.

Nicor shares jump 7.6 percent

NAPERVILLE -- Shares of Naperville-based Nicor Inc. gained the most since Aug. 10, adding 7.6 percent to close at $37.77 Thursday.

The owner of Northern Illinois Gas Co. reported first-quarter profit of 91 cents a share, exceeding the 73-cent average analyst estimate from a Bloomberg survey.

Cardinal Health profit up after lawsuit

DUBLIN, Ohio -- Cardinal Health Inc., the second-biggest U.S. distributor of prescription drugs, said quarterly profit rose almost 18-fold from a year earlier, when legal costs reduced earnings. The company surged the most in more than three years in New York trading.

Fiscal third-quarter earnings excluding items beat analysts' estimates by 6 cents a share as profit from sales of medical pumps and other products increased, the Dublin, Ohio-based company said today in a statement.

Cardinal's profit fell a year earlier when the company put aside $600 million to settle class-action lawsuits after a government investigation. Cardinal gained in the more recent quarter, helped by the acquisition of Viasys Healthcare Inc., purchased last June to add respiratory products and expand global sales, said Brian Sozzi, a Wall Street Strategies analyst in New York who recommends buying the company.

Cardinal rose $3.16, or 6.1 percent, to $55.23 in composite trading Thursday. It was the biggest gain since Oct. 27, 2004, when the company released a delayed earnings report showing a profit increase and soared 20 percent. Cardinal dropped 21 percent in the last 12 months.

CVS benefits from Caremark

PROVIDENCE, R.I. -- CVS Caremark Corp., the nation's biggest pharmacy chain, said Thursday that first-quarter profit jumped 84 percent, helped by surging sales in the wake of last year's purchase of Caremark.

Profit climbed to $745 million, or 51 cents per share, after preferred dividend payments in the quarter ended March 29, up from $405.4 million, or 43 cents per share, in the prior year. Excluding 4 cents per share for acquisition activities, earnings were 55 cents per share, meeting the expectations of analysts surveyed by Thomson Financial.

The Woonsocket, R.I.-based company said revenue surged 61 percent to $21.3 billion, up from $13.2 billion a year ago, also meeting analysts' estimates. CVS purchased pharmacy benefits management company Caremark in March 2007.