Interpublic 3Q results miss expectations
NEW YORK -- Interpublic Group of Cos., which owns advertising and marketing agencies, said Friday that its third-quarter net income fell 67 percent, hurt by the stronger dollar and lower spending by clients.
Results missed expectations and shares fell more than 2 percent in late trading.
The weak economy in Europe and slowdown in China have led a wide array of companies to cut spending on services such as marketing and advertising.
"This year has proven to be more challenging on the revenue front than anticipated, but we continue to manage the business effectively and will deliver increased full-year profitability relative to 2011," said CEO Michael I. Roth.
Net income after paying preferred dividends fell to $68.7 million, or 15 cents per share during the three months ended Sept. 30. That compares with $208.1 million, or 40 cents, last year.
That missed analyst expectations of 17 cents per share, according to FactSet.
Revenue fell 3 percent to $1.67 billion from $1.73 billion a year ago. Analysts expected revenue of $1.71 billion.
Shares fell 27 cents, or 2.6 percent, to $10.28 in late trading. The stock had been up 8 percent for the year.