The Interpublic Group of Companies reported earnings per share of two cents for the quarter ending September 30 2002. Analysts had expected an EPS of around eight cents -- already well below the 15 cents per share Interpublic paid for the same period last year. The company reported revenue of $1.5bn for the period.
It blamed the failure to meet forecasts on unanticipated charges at McCann-Erickson.
Interpublic has been forced to restate earnings over the past five years after it was revealed that McCann-Erickson Europe had booked the revenue for pan-European clients at more than one office.
In August, the company said that it had uncovered extra charges of $68.5m. This figure later rose to $120m before the current announcement.
In a statement, Interpublic said: "The final amount of the restatement is $181.3m, which reduces previously reported pre-tax income, substantially all of which is related to periods 2001 and prior."
The scandal has led to the departure of Sal LaGreco from his role of chief financial officer of McCann-Erickson WorldGroup, and David Bell, vice-chairman, being shifted to new responsibilities.
Interpublic said that it was now looking for a chief operating officer and a chief financial officer of McCann-Erickson WorldGroup. There is pressure on chairman and CEO John Dooner, as well as chief financial officer Sean Orr to put an end to the scandals that have been so damaging to Interpublic's share price this year.
Shares in Interpublic, listed on the New York Stock Exchange, closed at $12.58 yesterday, down 2.78% or 36 cents. However, in after-hours trading the share price fell as low as $10.88, but recovered some ground to trade at $11.79.
Detailed analysis of its third-quarter performance will be published on November 19.
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