Young & Rubicam, New York, reported strong profit improvement in the second quarter and first half before taking account of $174.3 million in special charges related to its May 15 initial public offering of stock. Those IPO costs sent Y&R's second- quarter and first-half results deeply into the red. Second-quarter net income of $24.5 million was up 81.5% from a year ago, on a 10.8% gain in revenue, to $372.1 million, before IPO charges. After the charges, Y&R reported a net loss for the quarter of $149.8 million. For the first half, Y&R reported net income of $36.7 million before special charges, a 108.5% increase from 1997, on revenues of $720.3 million, up 15.6%. After the IPO-related charges, Y&R said it recorded a first- half net loss of $137.6 million. Explaining the profit and revenue gains (before special charges), Y&R said it "continued to win important new assignments from our major multinational clients like Ford and Danone."
Copyright August 1998, Crain Communications Inc.