Outlook
Interpublic management has indicated that it will be evaluating its operating units, as well as the corporate center, and will detail an accelerated cost savings plan when it releases second quarter 2003 results in early August.
Despite continuing macroeconomic uncertainty, at this juncture revenue performance is consistent with management’s previous estimate of a 1% to 4% decline in 2003, exclusive of asset sales and foreign currency effects.
However, cost overhang issues persist at some units. Incorporating savings generated by the cost reduction program and excluding charges and gains, the company believes its previous 2003 earnings guidance of $.68 - .72 per share is achievable.