Attributes Drop to Charges From True North Buy

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NEW YORK ( -- Interpublic Group of Cos. posted a net loss of $477.5 million, or $1.29 per share, which the company explained was a result of a $593 million charge to cover restructuring costs related to the acquisition of True North Communications.

Factoring out the charges, Interpublic would have shown $54.5 million in net income and earnings per share of 15 cents, one cent above analysts' estimates.

Chief Financial Officer Sean Orr said Interpublic's management has "really drilled down" into the company's financials in recent months and doesn't plan any more unusual charges, but he wouldn't rule out making changes to protect profitability.

Interpublic reported third-quarter revenue dropped 7.4% to $1.61 billion, from $1.73 billion in 2000, due the continuing weakness in the U.S. market. Domestic revenue dropped 15.7% to $900.4 million, from $1.07 billion in 2000, and international revenue grew 6% to $705.3 million.

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