Profits at the Interpublic Group of Companies for the fourth quarter of 2002 fell to $20.3m, largely as the result of a collapse of profits at McCann-Erickson WorldGroup.
The latest charges date back to 1997 and are in addition to the $181.3m already uncovered last year, with $135.8m relating to losses at the troubled Octagon Motor Sports division, which owns the Brands Hatch racing circuit, and the remaining $29.9m at unnamed divisions.
WPP shares were down by 6.3%, or 23p, to 344p at one stage before recovering slightly. By 10.25am, WPP shares were trading down 5.5%, or 20.25p, at 347.75p. However, they still have a way to go to match the advertising giant's five-year low in late 1998 when shares were trading below the 250p mark.
Last month, WPP reported profits were down by almost 19% to £400.6m for 2002 and warned that the year was likely to remain flat with a 'difficult' 2003 ahead.
WPP chairman and CEO Sir Martin Sorrell said that full-year revenue for 2002 was down by almost 3% to £3.9bn largely in line with analyst estimates.
WPP was not the only faller in brisk trading this morning. Aegis, which owns the Carat media planning and buying network was down 3.59% to 54.2p; BSkyB was down 1.6% to 600.6p; Lord Bell's Chime Communications was down 2.13% to 11.5p; and Cordiant, which yesterday announced deputy president Jean de Yturbe was stepping down from his executive role at the company, fell 1.72% to 27.5p.
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