However, after hitting a low of $9.85 during the day's trading in New York, the price rallied somewhat to close at $11.44 -- down by 29.82%, or $4.86, on the previous day.
Interpublic revealed that earnings per share were likely to be between eight and 10 cents a share, compared with analyst estimates of around 28 cents a share. It is now reported that some investors might force the company to make management changes.
The fall came as shares on Wall Street staged an upsurge across the board, leaving the Dow Jones Industrial Average index up by 2.97% at close of play, valued at 8,275 points.
Interpublic, which owns the world's largest PR network Weber Shandwick Worldwide as well as the McCann-Erickson, Lowe & Partners and FCB advertising networks, blamed the tumbling profits on problems with its Octagon Motorsports division, as well as economic problems in Latin America and Japan.
There was some speculation that Interpublic could dump its motorsport business, which includes the Brands Hatch and Silverstone race tracks in the UK.
Shares in Interpublic have traded as high as $34.98 this year. However, the price was hit drastically in August when it was revealed that the company had uncovered $68.5m (拢44.4m) in charges that had not been properly accounted for. Coming as it did amid the Enron and WorldCom accounting scandals, the market reacted with a 24% plunge in the share price. Interpublic now faces formal investigation from the SEC as well as numerous lawsuits from shareholders.
On announcing that it would be revising its forecasts, chairman and CEO John Dooner said: "It is regrettable that we have had to revise our earnings forecast, but this new guidance reflects the difficult economic conditions we are facing around the world.
"We are dealing with our short-term issues in marketing services aggressively and directly. Among our other operating companies, many of our brands are demonstrating competitive vitality, as evidenced by encouraging new-business gains."
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