Interpublic Group Reports Results for Third Quarter 1998
October 27, 1998 at 12:00 AM EST
New York, October 27, 1998 (NYSE:IPG) -- Philip H. Geier, Jr., Chairman of the
Board and Chief Executive Officer, reported that The Interpublic Group of
Companies, Inc. had net income for the third quarter of 1998 of $45.2 million,
an increase of 45.3% over the restated net income for the third quarter of 1997
of $31.1 million. The basic earnings per share increased 41.7% to $.34 from $.24
for the comparable restated period of 1997. On a diluted basis, earnings per
share for the third quarter of 1998 was $.33, an increase of 37.5% over the
restated third quarter of 1997. The impact of foreign currency was negligible in
the third quarter.
Gross income for the third quarter of 1998 was $861.4 million, an increase of 17.5% over restated 1997. Gross income from United States operations increased 17.0%. Gross income from international operations increased 18.1%.
Net income for the nine months of 1998 was $197.4 million, an increase of 28.4% over the restated net income for 1997. The basic earnings per share increased 23.1% to $1.49 from $1.21 for the comparable restated period of 1997. On a diluted basis, earnings per share was $1.44 versus $1.17 in 1997, an increase of 23.1%.
Gross income for the first nine months of 1998 was $2,609 million, an increase of 16.6% from the restated nine months of 1997. Gross income from United States operations increased 19.2%. Gross income from international operations increased 14.0%. Gross income from international operations would have increased approximately 20.0%, except for the strengthening of the U.S. dollar against major currencies.
During the first nine months of 1998, net new business gains were recorded of approximately $1,207 million vs. $1,095 million in 1997, an increase of approximately 10.2%. This is a milestone for the Interpublic agency systems.
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.
The Interpublic Group of Companies is comprised of McCann-Erickson WorldGroup, Ammirati Puris Lintas, The Lowe Group, DraftWorldwide, Western International Media, Allied Communications Group, Octagon and other related companies.
Gross income for the third quarter of 1998 was $861.4 million, an increase of 17.5% over restated 1997. Gross income from United States operations increased 17.0%. Gross income from international operations increased 18.1%.
Net income for the nine months of 1998 was $197.4 million, an increase of 28.4% over the restated net income for 1997. The basic earnings per share increased 23.1% to $1.49 from $1.21 for the comparable restated period of 1997. On a diluted basis, earnings per share was $1.44 versus $1.17 in 1997, an increase of 23.1%.
Gross income for the first nine months of 1998 was $2,609 million, an increase of 16.6% from the restated nine months of 1997. Gross income from United States operations increased 19.2%. Gross income from international operations increased 14.0%. Gross income from international operations would have increased approximately 20.0%, except for the strengthening of the U.S. dollar against major currencies.
During the first nine months of 1998, net new business gains were recorded of approximately $1,207 million vs. $1,095 million in 1997, an increase of approximately 10.2%. This is a milestone for the Interpublic agency systems.
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.
The Interpublic Group of Companies is comprised of McCann-Erickson WorldGroup, Ammirati Puris Lintas, The Lowe Group, DraftWorldwide, Western International Media, Allied Communications Group, Octagon and other related companies.
CONTACT: | Eugene P.Beard 212-399-8053 Thomas Volpe 212-399-8056 |
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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES | |||||||||
Consolidated Summary of
Earnings Third Quarter Report 1998 and 1997 (Unaudited) (Dollars in Thousands Except Per Share Data) |
|||||||||
% | |||||||||
Three Months Ended September 30 | Favorable | ||||||||
1998 | 1997* | (Unfavorable) | |||||||
Gross Income: | |||||||||
United States | $ 436,042 | $ 372,778 | 17.0 | ||||||
International | $ 425,406 | $ 360,180 | 18.1 | ||||||
Total Gross Income | $ 861,448 | $ 732,958 | 17.5 | ||||||
. | |||||||||
Costs and Expenses |
$ 759,869 |
$ 660,465 |
(15.1) |
||||||
Interest Expense | $ 14,210 | $ 14,343 | 0.9 | ||||||
Income Before Provision for Income Taxes |
$ 87,369 | $ 58,150 | 50.2 | ||||||
Provision for Income Taxes |
$ 38,207 | $ 26,124 | (46.3) | ||||||
Net Equity Interests (a) | $ (4,000) | $ (943) | -- | ||||||
Net Income | $ 45,162 | $ 31,083 | 45.3 | ||||||
Per Share Data: |
|||||||||
Basic EPS | $.34 | $.24 | 41.7 | ||||||
Diluted EPS (b) | $.33 | $.24 | 37.5 |
||||||
Dividend per-share |
$.15 | $.13 | 15.4 | ||||||
Weighted Average Shares Basic |
132,792,504 | 127,078,261 | |||||||
Diluted | 137,567,041 | 132,181,681 | |||||||
% | |||||||||
Nine Months Ended September 30 | Favorable | ||||||||
1998 | 1997* | (Unfavorable) | |||||||
Gross Income: | |||||||||
United States | $ 1,325,140 | $ 1,111,287 | 19.2 | ||||||
International | $ 1,283,971 | $ 1,126,326 | 14.0 | ||||||
Total Gross Income | $ 2,609,111 | $ 2,237,613 | 16.6 | ||||||
. | |||||||||
Costs and Expenses |
$ 2,211,957 |
$ 1,924,630 |
(14.9) |
||||||
Interest Expense | $ 14,210 | $ 14,343 | (4.0) | ||||||
Income Before Provision for Income Taxes |
$ 359,335 | $ 276,636 | 29.9 | ||||||
Provision for Income Taxes |
$ 150,846 | $ 114,142 | (32.2) | ||||||
Net Equity Interests (a) | $ (11,134) | $ (8,760) | -- | ||||||
Net Income | $ 197,355 | $ 153,734 | 28.4 | ||||||
Per Share Data: |
|||||||||
Basic EPS | $1.49 | $1.21 | 23.1 | ||||||
Diluted EPS (b) | $1.44 | $1.17 | 23.1 |
||||||
Dividend per-share |
$.43 | $.37 | 16.2 | ||||||
Weighted Average Shares Basic |
132,704,118 | 126,991,427 | |||||||
Diluted | 137,783,816 | 136,285,448 | |||||||
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