The Interpublic Group of Companies (IPG) yesterday reported Q3 earnings of $.15 per share compared with $.29 per share in last yearÂ’s third quarter. These results exclude restructuring and other one-off charges and include the operations of True North Communications, acquired in a pooling-of-interests transaction valued at $1.7 billion on June 21.
Q3 revenue declined by 7.4% to $1.6 billion from $1.7 last year. Interpublic estimates that business disruptions following the events of 11th September reduced revenues and operating income by approximately $35 million in the third quarter. Net income before one-off costs was $54.5 million in the third quarter, compared to $107.7 million in the same quarter 2000.
“Given the uncertain political and economic environment, clients are understandably cautious and InterpublicÂ’s revenue performance reflects their concerns. Our focus is on serving our clients, winning new business and controlling expenses, so we can achieve the best possible earnings performance in the near term and going forward,” said John J. Dooner, IPG’s chairman and CEO.
Over the past few months Interpublic have executed a restructuring and cost-cutting programme which sought to reduce losses caused by the adverse market climate which precipitated higher severance, lease terminations and other merger-related costs, totalling $592.8 million.
Sean F. Orr, InterpublicÂ’s chief financial officer, said “Our restructuring initiatives have enabled us to better align our costs with our revenues. We’ve made significant progress on the cost side toward achieving our margin goals.”
Inclusive of such one-off and restructuring charges, Interpublic reported a net loss of $477.5 million, or $1.29 per share in the third quarter. In the third quarter of 2000, which again included some restructuring charges, the company reported net income of $90.8 million, or $.24 per share.
