Interpublic Group of Companies, Inc. (IPG) reported decent results for the fourth quarter and full year 2009 in a difficult economic environment. 

During the fourth quarter of 2009 revenue was $1.80 billion, compared to $1.90 billion in the fourth quarter of 2008, with a decrease of 8.2% in organic revenue. Full year 2009 revenue was $6.03 billion, compared to $6.96 billion in 2008, with a decrease of 10.8% in organic revenue. 

Fourth quarter 2009 net income was $129.4 million, or 24 cents per share, in line with the Zacks Consensus Estimate of 24 cents. However, it declined from a net income of $209.8 million, or 39 cents in the fourth quarter of 2008. 

Full year 2009 net income was $93.6 million, or 19 cents per diluted share. This compares to a net income of $265.2 million, or 52 cents in 2008. Reported EPS matched the Zacks Consensus Estimate of 19 cents. 

Cash flow from operations for the fourth quarter of 2009 was $739.4 million, compared to $719.0 million in 2008. For the full year 2009, cash flow from operations was $540.8 million, compared to $865.3 million in 2008. 

As on Dec 31, 2009, cash, cash equivalents and marketable securities totaled $2.51 billion, compared to $2.27 billion at the end of 2008 and $1.77 billion at the end of the third quarter of 2009. Total debt of $1.95 billion as of Dec 31, 2009 decreased from $2.12 billion as of Dec 31, 2008, primarily due to repayment. 

Operating income in the fourth quarter of 2009 was $268.0 million, compared to an operating income of $330.6 million in the same period of 2008. For the full year 2009, operating income was $341.3 million, compared to an operating income of $589.7 million in 2008. Operating margin was 14.9% and 5.7% for the three and twelve months ended Dec 31, 2009, respectively, compared to 17.4% and 8.5% for the three and twelve months ended Dec 31, 2008, respectively. 

Operating costs were down 2.4% in the fourth quarter and 10.8% in the full year 2009. Interpublic Group’s strong focus on cost discipline has pulled it through the challenging environment and the company is positioned for future growth and profitability.
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