Interpublic Group of Cos. Inc.'s stock rose more than 8 percent (up $1.28 to
$17.06 per share) Wednesday following word that the company was restating
five years of earnings after uncovering $68.5 million in charges at McCann-Erickson WorldGroup's international operations that weren't properly expensed.
In a conference call with analysts Tuesday, company executives asserted
that $68.5 million was "not material" to the company's earnings totals over five
The fact that the stock didn't take a beating suggested that the street
accepted that assertion.
For the second quarter, the company reported an 8 percent revenue decline to
$1.6 billion, but a wide positive earnings swing to $117 million, compared
with a $113 million loss for the second quarter of 2001.
Company executives said they expected the revenue situation to improve slowly,
quarter by quarter, but full-year revenues would be down in the