The world’s second-largest advertising and marketing company, Interpublic Group, announced first quarter net income down by 19% to $36.3 million – or 13 cents a share – after taking a $36.1m pretax charge to cover restructuring costs for its recently merged subsidiary Lowe Lintas & Partners.
The significant fall in net income follows Interpublic’s integration last year of agency groups Ammirati Puris Lintas and Lowe & Partners Worldwide. Without the concomitant restructuring charges, group net profit for the period would have risen by 27% from $44.8m to $57m. Net new billings leapt by 17% to $702m.
Wall Street Journal [28-Apr-00]