INTERPUBLIC LOWERS EARNINGS ESTIMATE

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(June 15, 2001) -- The Interpublic Group of Cos. lowered its second-quarter earnings per share estimate to the 30 cent to 35 cent range. On March 19, the company said it expected earnings per share to come in between 40 cents and 45 cents.

In a statement on Thursday, Interpublic blamed "a slower pace of new business activity and weaker than expected client spending, virtually across the board, reflecting a softer economic environment in the U.S. and slowing international economies."

The marketing services company also expects to incur significant cash and non-cash charges in association with its acquisition of True North Communications (expected to close this month) and a subsequent companywide restructuring that will cost an estimated $300 million. True North shareholders are set to vote June 19 on the offer and the deal would close by the end of the month. -- Laura Petrecca

Copyright June 2001, Crain Communications Inc.

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