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INTERPUBLIC GROUP REPORTS RESULTS FOR FIRST QUARTER 1993

 NEW YORK, April 27 /PRNewswire/ -- Philip H. Geier, Jr., chairman of the board and chief executive officer, reported that the Interpublic Group of Companies (NYSE: IPG) had income before accounting changes of $11,025,000 for the first quarter of 1993, an increase of 14.3 percent from the comparable income for the first quarter of 1992 of $9,645,000. After taking into effect accounting changes, net income for the first quarter of 1993 was $10,513,000 and the first quarter of 1992 had a net loss of $14,995,000. Net income for the first quarter of 1992 has been restated to reflect a $24,640,000 charge to earnings due to the adoption of Statement 106, "Employer's Accounting for Postretirement Benefits other than Pensions," which charge was taken in 1992 retroactively to the first quarter of 1992.
 Excluding the unfavorable effects of the adoption of Statement 106, earnings per share increased more than 15 percent to $.15 from $.13 in the comparable period of 1992. After taking into effect accounting changes, earnings per share for the first quarter of 1993 were $.14 as compared to a net loss of $.20 for the first quarter of 1992. The per share results for 1992 have been restated to reflect the 2-for-1 stock split in June of 1992.
 Gross income for the three-month period ended March 31, 1993 was $389,785,000, a 2.7 percent decline from the gross income of the comparable period in 1992. The 1993 gross income results were unfavorably affected because of the very strong U.S. dollar during the first quarter of 1993 and by extraordinary spending by major clients on the 1992 Olympics. The strengthening of the U.S. dollar unfavorably impacted the gross income results by $18 million. Excluding these extraordinary effects, gross income for the first quarter of 1993 would have been $413,785,000, an increase of over 3 percent as compared to the first quarter of 1992.
 Interpublic's agency systems have achieved net new business during the first three months of 1993 of approximately $266,675,000, which was slightly ahead of the record gains of $266,645,000 achieved during 1992. This is an indication of continued solid growth in a tough global environment.
 Continuing cost containment efforts kept costs at appropriate levels. Mr. Geier noted that the company's financial condition continues to be excellent, with a strong balance sheet and a solid cash position. He also noted that, as in previous years, the results for the first quarter do not necessarily indicate the results for the full year.
 The Interpublic Group of Companies is comprised of McCann-Erickson Worldwide, Lintas: Worldwide, Dailey & Associates, The Lowe Group and other related companies.
 The shares of The Interpublic Group of Companies, Inc. are listed on the New York Stock Exchange.
 THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES
 Consolidated Summary of Earnings
 (Dollars in thousands except per share data - Unaudited)
 Three months ended March 31 1993 1992 Percent
 Favorable
 (Unfavorable)
 Gross income:
 United States $126,435 $132,818 (4.8)
 International 263,350 267,927 (1.7)
 Total 389,785 400,745 (2.7)
 Costs and expenses 360,731 371,814 3.0
 Interest expense 7,721 7,283 (6.0)
 Income before provision
 for income taxes 21,333 21,648 (1.5)
 Provision for income taxes 10,018 10,815 7.4
 Net equity interests (A) (290) (1,188) 75.6
 Income before effect of
 accounting changes (B) (11,025) 9,645 14.3
 Effects of accounting changes:
 Income taxes (512) -- --
 Postretirement benefits -- (24,640) --
 Net income/(loss) 10,513 (14,995) 170.1
 Per share data:
 Income before effect of
 accounting change .15 .13 15.4
 Effect of accounting changes (.01) (.33) 97.0
 Net income .14 (.20) 170.0
 Average number of shares 75,554,336 74,965,630 --
 Cash dividends per share .115 .105 9.5
 (A) Net equity interests is the net of equity in income of unconsolidated affiliates less income attributable to minority interests of consolidated subsidiaries.
 (B) Includes losses from exchange and translation of foreign currencies for 1993 and 1992, respectively, of $3,357,000 and $39,000.
 -0- 4/27/93
 /CONTACT: Eugene P. Beard, 212-399-8053, or William S. Keating, 212-399-8078, both of Interpublic Group of Companies, Inc./
 (IPG)


CO: Interpublic Group of Companies, Inc. ST: New York IN: ADV SU: ERN

SM-OS -- NY023 -- 1186 04/27/93 09:29 EDT
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Publication:PR Newswire
Date:Apr 27, 1993
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