UnitedHealth 1Q profit rises 8.4% to $927M

MINNEAPOLIS, Minn. – UnitedHealth Group (NYSE:UNH) today said its first-quarter profit increased 8.4 percent, compared with the year-ago quarter, to $927 million or 66 cents per share. Excluding 409A charges related to past stock-option issues, the company’s profit rose 17 percent year over year to $1.04 billion or 63 cents per share.
First-quarter revenue rose 8.4 percent to $19.0 billion from the year-ago $17.6 billion. It included $1 million in net capital losses, compared with $7 million in the fourth quarter of 2006 and $26 million in the quarter ended March 31, 2006.
Earnings from operations increased 7.5 percent to $1.58 billion – and excluding 409A charges, rose 19.7 percent to $1.76 billion – from the year-ago $1.47 billion.
The company’s consolidated operating margin dipped to 8.3 percent from the year-ago 8.4 percent. Excluding 409A charges, the margin rose to 9.2 percent.
“Our first-quarter results demonstrate the value of building and operating a diverse group of businesses with participation in a broad expanse of distinct end markets within health care,” said Stephen J. Hemsley, the company’s president and CEO. “In that regard, we are pleased and honored to renew and expand our relationship with AARP.”

At the company’s health care segment, which includes UnitedHealthcare, the parent of UnitedHealthcare of New England, revenue increased 8 percent year-over-year to $17.1 billion. Earnings from operations increased 22.6 percent to $1.3 billion, and the segment’s operating margin rose to 7.6 percent from the year-ago 6.7 percent.
UnitedHealth Group is a diversified health and wellness company serving about 70 million people nationwide through its six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix Additional information is available at www.unitedhealthgroup.com.

No posts to display