Interpublic Group of Cos. (IPG) has reported discouraging results for the third quarter 2009. Revenue fell to $1.43 billion from $1.74 billion in the third quarter of 2008, with an organic revenue decrease of 14.2% compared to the prior period.
Net income available to IPG common stockholders was $17.2 million in the quarter, or 4 cents per basic and 3 cents per diluted share. This compares to net income available to IPG common stockholders of $38.7 million, or 8 cents per basic and diluted share in the year ago quarter.
Operating income in the quarter was $58.3 million, compared to operating income of $116.3 million in 2008. Operating margin was 4.1% compared to 6.7% for the three months ended Sep 30, 2008, respectively.
At Sep 30, 2009, cash, cash equivalents and marketable securities totaled $1.77 billion, compared to $2.27 billion at the end of 2008 and $1.71 billion at the end of the third quarter of 2008. Total debt of $1.96 billion as of Sep 30, 2009, decreased from $2.12 billion as of Dec 31, 2008, primarily due to the net repurchases debt.
Moreover, management is confident of being able to redeem the 2009 and 2010 maturities with the cash in hand.
Although the economic downturn continued to weigh on the results, we believe that a solid balance sheet combined with improved financial systems and cost discipline should see the company through the economic turmoil and help thrive when demand for marketing services pick up as part of a broader recovery.
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