The third-quarter net loss takes in large restructuring costs following a series of financial difficulties after an acquisition spree in the late 1990s, as well as an accounting scandal. The restructuring programme also included the disposal of its British motor racing assets, which resulted in hefty charges.
While the quarterly loss has widened, these latest results from Interpublic also revealed that revenue increased 6.3% compared with the same period last year, rising to $1.51bn. Also at the end of the third quarter Interpublic's total debt stood at $2.3bn, compared with $2.5bn the previous year.
Commenting on these latest figures, group CEO and president David Bell said: "The news this quarter was decidedly mixed. We continue to focus on achieving our turnaround objectives by mid-2006... our financial condition is strong; the balance sheet actions taken this quarter represent the tail end of the legacy of our past acquisition culture."
He added: "We've been clear that our progress in righting Interpublic would not be linear."
According to The Wall Street Journal, Bell has told analysts he plans to spend more time with clients and developing new business, with the paper speculating this could lead to a bigger role for chairman Michael Roth in rebuilding the company.
Shares in Interpublic fell by 3.5% when the market opened on Wednesday morning in New York, trading at $11.70, a decline of 42 cents.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
