IPG Postpones Full Third-Quarter Results

Boosts Restatement Estimate to $181 Million From $120 Million

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NEW YORK (AdAge.com) -- Interpublic Group of Cos. released only partial third-quarter results today, and postponed its full report until next week due to a planned restatement of results for the last five years.

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Interpublic reported revenue of $1.5 billion for the quarter and earnings of 0.02 cents per share, 0.06 cents below its previous estimate.

McCann-Erickson WorldGroup
The shortfall was a result of charges at McCann-Erickson WorldGroup, related to a previously announced restatement of results, said Chief Financial Officer Sean Orr.

The restatement will result in $181.3 million in charges across the years 1997 through 2001. In August, Interpublic announced it would restate results for the last five years to adjust for incorrectly accounted charges at its McCann-Erickson Europe unit. The adjustments were said to add $68.5 million in charges, but that number was revised to $120 million in October.

"We're confident the process is complete," said Mr. Orr.

Changes to management
The company also announced it has begun searching for a chief operating officer for Interpublic and a chief financial officer for McCann-Erickson WorldGroup. The chief operating officer position will be new, while the new McCann chief financial officer hire will replace Salvatore LaGreca, vice chairman of finance and operations, who will leave the company in the first quarter of 2003. An announcement regarding that position could come as early as Tuesday, Mr. Orr said.

Interpublic did not release a full income statement and instead took advantage of a five-day extension allowed by the Securities and Exchange Commission and scheduled a full report and conference call for Nov. 19.

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