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FCB REPORTS 1992 RESULTS

 CHICAGO, Feb. 17 /PRNewswire/ -- Foote, Cone & Belding Communications, Inc. (NYSE: FCB) today reported significantly higher earnings for the 1992 fourth quarter and full year compared to results of a year ago.
 YEAR ENDED DEC. 31, 1992
 1992 net income was $21,728,000 or $2.00 per share, compared to a loss of ($19,148,000) or ($1.81) per share in 1991.
 1991 results included restructuring charges which reduced reported net income by $35,981,000 or $3.41 per share. 1992 results included a one-time credit to income taxes, as well as a charge of $3,648,000 related to the revaluation of certain noncurrent assets and liabilities. Excluding the impact of accounting changes and unusual items, earnings from operations increased 24 percent from $1.60 per share in 1991 to $2.00 per share in 1992.
 Pro forma combined revenues (including FCB's proportionate share of European revenues) increased to $627,453,000 in 1992 from $586,832,000 in 1991. Consolidated revenue (excluding Europe) totaled $353,340,000 in 1992, compared to $341,987,000 in 1991.
 Operating margin for consolidated operations increased 27 percent to $26,177,000 in 1992, compared to $20,610,000 in 1991. Equity income, which consists primarily of FCB's share of European operations, increased from $9,201,000 in 1991 to $12,642,000 in 1992.
 QUARTER ENDED DEC. 31, 1992
 Net income for the fourth quarter of 1992 was $6,511,000 or $0.59 per share compared to a loss of ($29,244,000) or ($2.74) per share in 1991. Results for the fourth quarter of 1992 included unusual items related to the revaluation of certain noncurrent assets and liabilities. The impact of unusual items was to reduce 1992 fourth quarter reported net income by $3,648,000 or $0.33 per share. 1991 fourth quarter results were depressed by the restructuring charge of $35,981,000 or $3.37 per share. Earnings before unusual items were $10,159,000 or $0.92 per share in 1992 compared to $6,737,000 or $0.63 in 1991, an increase of 51 percent.
 RESTATEMENT OF PRIOR QUARTERS
 As previously mentioned, FCB has elected early adoption of Statement of Financial Accounting Standard (SFAS) No. 109, "Accounting for Income Taxes." This change is effective for the entire year and the cumulative impact of this change, a one-time credit to income of $3,681,000, must be recognized in the first quarter of 1992. Accordingly, net income for the first quarter of 1992 has been restated from the previously reported amount of $1,237,000 or $0.12 per share to $4,918,000 or $0.46 per share. Adoption of SFAS No. 109 did not result in any material changes to quarterly results subsequent to the first quarter of 1992.
 1992 IN REVIEW
 New Business
 -- During 1992, FCB added in excess of $300 million in new business, an increase of over 13 percent from 1991. This growth was evenly balanced between domestic and international operations.
 -- Fourth quarter gains included Perrier (Publicis-FCB, Paris); FILA and Colgate-Palmolive Softsoap (FCB/LKP New York); Macromedia, SunSoft and Dockers Shoes (FCB San Francisco); MGM Studios and Wings Fragrance (FCB Los Angeles); Oral-B and Burroughs Wellcome (VICOM/FCB, San Francisco); New Balance (FCB Puerto Rico) Colgate-Palmolive and Nestle' products (FCB Venezuela) and Cadbury Schweppes (Thomson White/FCB, Australia).
 Acquisition and Joint Ventures
 -- FCB expanded its international network in 1992 with acquisitions in Australia and New Zealand (Mojo network from Chiat/Day, as well as the former JMA Agency in Perth) and Brazil (Nucleo Publicidade); Joint ventures were formed in South Korea (Union/FCB) and Canada (Auger Baberux/FCB).
 -- The Mojo acquisition, initiated in the fourth quarter, will elevate FCB to the rank of third largest agency group in Australia and the second largest group in New Zealand.
 Industry Recognition
 -- FCB closed 1992 in the U.S. with "Best Campaign of the Year" honors for its Levi's Dockers advertising from both Advertising Age and Adweek.
 CHAIRMAN'S COMMENTS
 FCB Chairman and CEO Bruce Mason, commenting on the 1992 results said, "FCB hit its stride and achieved vastly improved financial performance during the past year despite a weak global economy. Strict financial discipline, coupled with a heightened focus on creativity, has provided a solid foundation for substantial top line growth. We are well positioned to sustain this momentum in the year ahead and capitalize on further opportunities for expansion."
 NEW GLOBAL EMPLOYEE STOCK INCENTIVE PLAN
 Mason also announced that the FCB Communications Inc. board of directors approved a sweeping Global Employee Stock Incentive Plan, the first of its kind anywhere in the industry. In the new plan, each of FCB's 4,000 employees worldwide will be awarded one share of FCB stock for each quarter of EPS growth, contingent upon the company achieving its annual financial objectives.
 Mason said, "This innovative program is designed to reward the performance of all our employees worldwide, FCB's largest single shareholder group. It will enhance their personal stake in the long term growth of our company and ensure that all shareholders profit better from FCB's creativity."
 In recognition of the company's outstanding 1992 performance, where each quarter showed EPS growth over the previous year, Mason said a grant of four shares of FCB stock would be made to every employee to initiate the new plan.
 Foote, Cone & Belding ranks as the 8th largest worldwide advertising company, and the largest agency in the United States. Its network includes 176 offices in 44 countries, with worldwide billings, including Publicis-FCB European operations, totaling more than $6 billion.
 FOOTE, CONE & BELDING COMMUNICATIONS, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 (000s except per-share amounts)
 TWELVE MONTHS ENDED DEC. 31, 1991 1992 Pct Increase
 (Decrease)
 REVENUES $341,987 $343,340 3.3
 OPERATING EXPENSES:
 Salaries and other employee benefits 198,497 203,696 2.6
 Office and general expenses 108,549 103,999 (4.2)
 Direct marketing cost of goods sold 14,331 19,468 35.8
 TOTAL OPERATING EXPENSES $321,377 $327,163 1.8
 Operating margin $20,610 $26,177 27.0
 Nonoperational items:
 Other Income (expense) ($4,726) ($5,879) 24.4
 Unusual items (41,594) (3,648) (91.2)
 Other income (expense) ($46,320) ($9,527) (79.4)
 Income Before Provision for
 Taxes on Income ($25,710) (16,650) 164.8
 Provision for Federal, Foreign
 and State Income Taxes 2,409 10,891 352.1
 Total ($28,119) $5,527 120.5
 Minority interest expense (230) (354) 53.9
 Equity in Earnings (Losses) of
 Affiliated Companies 9,201 12,642 37.4
 Net income before change in
 accounting ($19,148) $18,047 194.3
 Impact of change in accounting -- 3,681 N/A
 NET INCOME (19,148) 21,728 213.5
 Per Common and Common
 Equivalent Share
 Net income before change in
 accounting $(1.81) $1.68 101.7
 Impact of change in accounting -- 0.34 N/A
 Net income $(1.81) $2.00 210.5
 Average number of common and common
 equivalent shares outstanding 10,550 10,874 3.1
 Operating margin percentage 6.0 pct 7.4 pct
 THREE MONTHS ENDED DEC. 31, 1991 1992 PERCENT
 (Decrease)
 REVENUES $ 94,854 $ 98,866 4.2
 OPERATING EXPENSES:
 Salaries and other employee benefits 51,402 56,105 9.1
 Office and general expenses 32,600 30,046 (7.8)
 Direct marketing cost of goods sold 3,824 5,559 45.4
 TOTAL OPERATING EXPENSES $ 87,826 $ 91,710 4.4
 Operating margin $ 7,028 7,156 1.8
 Nonoperational items:
 Other income (expense) (1,340) (1,778) 32.7
 Unusual items (41,594) (3,648) (91.2)
 Other income (expense) (12,934) (6,126) (87.4)
 Income Before Provision for
 Taxes on Income (25,710) $16,650 104.8
 Provision for Federal, Foreign
 and State Income Taxes 2,445 3,481 242.4
 Total ($33,461) ($1,751) 94.8
 Minority interest expense (109) (172) 57.8
 Equity in Earnings (Losses) of
 Affiliated Companies 4,326 8,434 95.0
 Net income before change
 in accounting ($29,211) $ 6,511 122.3
 Impact of change in accounting -- -- N/A
 NET INCOME (29,244) 6,511 122.3
 Per Common and Common
 Equivalent Share
 Net Income before change in
 accounting $(2.74) $0.59 121.5
 Impact of change in accounting -- -- N/A
 Net Income $(2.74) $0.59 121.5
 Average number of common and common
 equivalent shares outstanding 10,664 11,010 3.2
 Operating margin percentage 7.4 pct 7.2 pct
 FOOTE, CONE & BELDING COMMUNICATIONS, INC. AND SUBSIDIARIES
 PRO FORMA SUMMARY OF OPERATING RESULTS (UNAUDITED)
 TWELVE MONTHS ENDED DEC. 31
 1991 1992
 Combined Revenues:
 FCB (ex Europe) $341,987 $353,340
 European Joint Venture/a/ 244,845 274,113
 $586,832 $627,453
 Combined Operating Margin:
 FCB (ex Europe) $ 20,610 $ 26,177
 European Joint Venture/a/ 26,110 34,718
 $ 46,729 $ 60,895
 FCB Net Income:
 FCB (ex Europe) $ 8,373 $ 10,509
 Unusual items (35,981) (3,648)
 European Joint Venture/a/ 8,460 11,186
 Net income before
 accounting change $(19,148) $(18,047)
 Cumulative impact of
 accounting change -- 3,681
 $(19,148) $21,728
 (a) Represents FCB's proportionate share of Publicis'FCB European operations.
 -0- 2/17/93
 /CONTACT: Terry Ashwill, chief financial officer, 312-751-7000, or Owen Dougherty, corporate communications, 312-751-7789, both of FCB/
 (FCB)


CO: Foote, Cone & Belding Communications, Inc. ST: Illinois IN: ADV SU: ERN

KD -- NY115 -- 7600 02/17/93 19:19 EST
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Date:Feb 17, 1993
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