True North Communications, Chicago, in its first financial report after merging with Bozell, Jacobs, Kenyon & Eckhardt late last year, said the combined company made a profit (before merger costs and other charges) of $55.2 million in 1997, up 26.8%, on revenues of $1.2 billion, up 22% from 1996. After $131 million in merger charges and other costs, however, the new TN reported a $50 million loss for the year compared to net income of $38 million in 1996. For the fourth quarter, revenue grew to $343 million from $289 million, producing net income (before charges) of $26 million compared to $19 million in the fourth quarter of 1996. After merger-related and other charges, however, TN showed a net loss of $74 million for the quarter.
Copyright March 1998, Crain Communications Inc.