("=Interpublic 1Q Loss Widens On Higher Costs, Rev Drop,"
published at 7:26 a.m. EDT, incorrectly said operating costs rose
in the first and seventh paragraphs. The correct version
follows:)
DOW JONES NEWSWIRES
Interpublic Group of Cos.' (IPG) first-quarter net loss widened
on falling revenue as the advertising giant continues to see
weakened demand for marketing services.
A decline in ad spending has plagued marketing companies and
print media alike. In response, Interpublic is experimenting with
new media, as advertising on the Internet is predicted to buck that
trend.
Chairman and Chief Executive Michael I. Roth said excluding
severance costs, operating performance in the first quarter was in
line with a year earlier.
The parent company of DraftFCB and McCann-Erickson posted a net
loss of $73.6 million, or 16 cents a share, compared with a
year-earlier net loss of $63.4 million, or 15 cents a share.
Revenue dropped 11% to $1.33 billion, down 8% domestically and
14% abroad. Organic revenue, which excludes currency changes and
acquisitions, fell 5.6%.
A survey of analysts by Thomson Reuters on average projected a
20-cent loss on revenue of $1.3 billion.
Total operating costs fell 8.8%.
Shares closed at $5.54 Monday and weren't active premarket. The
stock is up 40% so far this year after falling in November to lows
not seen since early 1986.
-By Joan E. Solsman and Kevin Kingsbury, Dow Jones Newswires;
201-938-5500; joan.solsman@dowjones.com