Advertising network, Interpublic Group, last night sent tremors through Wall Street and the New York Stock Exchange, after indicating that its 2002 earnings will be much lower than had been anticipated.
To add to its woes, Interpublic, the world’s second largest network of advertising companies, is also implicated in America’s recent flurry of corporate accounting inconsistencies scandals. The group is currently in the process of restating the incorrectly reported expense figures.
At the same time, 2002 earnings per share forecasts have been lowered from the previous $1.25-$1.35 range to $0.85-$0.90. For the third quarter, earnings are expected to be $0.08-$0.10 – significantly lower than the Wall Street consensus of $0.28.
“It is regrettable that we have had to revise our earnings forecast, but this new guidance reflects the difficult economic conditions we are facing around the world. We are dealing with our short-term issues in marketing services aggressively and directly,” said John J Dooner Jr., Interpublic’s chairman and CEO.
