Interpublic Announces 2013 Results

Full year 2013 revenue grew to $7.12 billion, compared to $6.96 billion in 2012, an organic revenue increase of 3.7% for the fourth quarter of 2013, and 2.8% for the full year. Fourth quarter results include a pre-tax charge of $60.6 million for restructuring, primarily related to Continental Europe

“We are pleased to report a quarter of solid growth, led by outstanding U.S. performance. This brought our full year organic revenue increase to 2.8%,” said Michael I. Roth, Interpublic’s Chairman and CEO. “Our results in Europe fell short of expectations, which had a major impact on overall profitability. We’ve taken strategic cost reductions targeted at this issue, which are reflected in a fourth quarter restructuring charge. Going forward, the strength of our agencies and our competitiveness on the new business front position us well for improved growth, so we are targeting a 3-4% organic revenue increase and 10.3% or better operating margin in 2014. We believe our cost actions and other strategic actions will result in at least a 100 basis point improvement over underlying 2013 margin performance. Furthermore, the strength of our balance sheet and our capital return programs have been significant drivers of value creation – our Board’s actions to increase the dividend and share repurchase plan build on that success and demonstrate their belief in the opportunities that lie ahead for us to further enhance shareholder value.”

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