Omnicom, buoyed by its “strongest” results of 2010, said fourth-quarter net income rose 7.4 percent to $246.5 million on a 9.8 percent increase in revenue to $3.6 billion.
In a call to analysts, Omnicom chief John Wren singled out the company’s U.S. performance where organic growth was 12.7 percent, an increase that exceeded Omnicom’s internal forecast.
“Looking forward, our outlook remains positive but cautious,” Wren said. “The midterm elections have signaled a renewed focus on fiscal restraint and a reduction in the level of anti-business rhetoric from Washington . . . At this point, we expect growth in 2011 to return to normal levels.”
He added, however: “Unemployment and housing still represents a drag on potential growth.”
Omnicom’s organic growth in the fourth quarter was up 10 percent.
For the year, Omnicom said net income increased 4.4 percent to $827.7 million on a 7 percent rise in worldwide revenue to $12.5 billion. The loss of Chrysler in the first quarter lowered the company’s organic growth by 1.5 percent in the period.
Revenue in the U.S. climbed 8.2 percent to $6.7 billion in 2010; international revenue rose 5.7 percent to $5.8 billion. Omnicom said business outside the U.S. is improving: The company posted “significant double-digit top-line organic growth” in Asia; continued to see strong positive results in South America; and a continuation of a turnaround across Europe, Wren said.