$73.9 Mil. Q1 Loss for IPG | Adweek $73.9 Mil. Q1 Loss for IPG | Adweek

$73.9 Mil. Q1 Loss for IPG


At IPG's CMG segment, Q1 revenue decreased 13.8 percent, with an organic decline of 7 percent. In the U.S., organic growth declined 10.8 percent and was flat internationally. The company's events business, which typically includes large-scale business-to-business forums, "decreased significantly," according to Mergenthaler and IPG's PR businesses had "only a slight organic decrease".

Like other U.S.-based multinationals, IPG was impacted by the growing strength of the dollar: While international revenue slipped 14.5 percent, the organic decrease was only 1.3 percent. Compared to the first quarter of 2008, exchange rates had a negative effect of 7.3 percent on IPG's bottom line, while net business acquisitions added 2.1 percent.

Roth assured analysts about the company's liquidity picture: "We continue to believe that our existing liquidity allows us to handle the $250 million maturities that will come due late this year and in 2010."
Roth described January as a "difficult" month, but said business had picked up in February and March. He cited new client wins at Draftfcb and strong improvements at Lowe, particularly in the U.K, with new assignments from Unilever. Still, in looking ahead he said: "There's no reason to think there will be any deterioration in [IPG] revenue but you have to assume some cautiousness in this environment.