Interpublic Group, due to unveil its third quarter earnings on Wednesday, is also set to reveal unpleasant news about the extent of accounting irregularities at its largest agency network McCann-Erickson World Group [WAMN: 18-Oct-02].
First reported in August, these centered around McCann’s European operations, where bookkeeping inconsistencies forced Interpublic to restate five years of earnings and take a $68.5 million pretax charge.
Then last month IPG admitted that the continuing investigation had necessitated upward adjustments, raising the McCann charge to a figure “not expected to exceed $120 million”.
But, according to Monday’s New York Times, this figure is expected to get worse. The speculation follows more recent news [WAMN: 24-Oct-02] that McCann is to lose its chief financial officer and vice chairman Salvatore LaGreca (49) who plans to take [unusually] early retirement.
Meantime, with an announcement due Wednesday, lips at the beleaguered holding company remain firmly zipped.
Data sourced from: New York Times; additional content by WARC staff