Grey Global Group’s Q4 Revenue Up 10.5 Percent

Grey Global Group, buoyed by a growth in North American operations and the impact of a weaker dollar on international revenue, posted a 10.5 percent increase in fourth-quarter revenue to $333.6 million, from the same period last year.

The company last week reported net income of $9.5 million, or $6.27 per diluted share, in the fourth quarter, compared to a loss of $28.6 million, or $21.88 per share, for the same period in 2001. For 2002, Grey reported net income of $18.3 million, up from a loss of $24.4 million a year earlier.

In 2001, Grey took a non-cash charge of $32.2 million in the fourth quarter, related to the write-down of Internet investments and other charges against earnings. Without that one-time charge, Grey’s fourth-quarter 2002 net income was more than twice the $3.6 million from operations posted in fourth-quarter 2001, and net income for all of 2002 more than doubled from $7.8 million in 2001.

Grey said North American revenue in 2002 climbed 3 percent, compared to a 5 percent decline in non-North American revenue, principally due to weakness in Northern European markets such as Germany and Scandinavia, and Latin American countries like Brazil. In new business, the company cited wins of “major” assignments that include Procter & Gamble, GlaxoSmithKline, Mars, BellSouth and Volkswagen as contributing to the gains. —NO’L