LONDON (Brand Republic) - The Interpublic Group of Companies has announced a rise in net income of 2.6% for the first quarter to $65.6m (£45.51m), up from last year鈥檚 figure of $63.7m (£44.19m).
Worldwide revenue grew year-on-year 6% in the quarter to $1.3bn (£0.9bn), compared with $1.23bn (£0.85bn) last time. If it had not been for fluctuating currencies, the increase would have been 11%.
Despite this, the company warned that its second-quarter earnings would come in at between 40 cents (28p) and 45 cents (31p) a share, about 30% below analyst expectations of 61 cents and also below last year鈥檚 56 cents.
John Dooner, chairman and chief executive officer, said that despite a challenging revenue environment, Interpublic鈥檚 鈥渞elentless drive to manage costs鈥 had led to double-digit operating profit growth.
鈥淟ooking forward, we remain cautious about revenue comparisons in 2001, particularly the first half of the year. We remain committed to double-digit operating profit growth, and have increased our emphasis on cost controls to ensure the highest possible return on revenues,鈥 he said.
At close of business yesterday, Interpublic鈥檚 share price had dropped 19 cents on the New York Stock Exchange to $36.31.
Interpublic warns of a fall in second-quarter earnings
The Interpublic Group of Companies has announced a rise in net income of 2.6% for the first quarter to $65.6m (£45.51m), up from last year鈥檚 figure of $63.7m (£44.19m).