Internet Unit Hurts Grey Advertising Profits
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Shares of New York City-based Grey Advertising Inc., the world's sixth-largest advertising agency, were off by as much as 6 percent Monday after it reported lower fourth-quarter earnings, in part because of expenses at an Internet unit.
Grey fell $20 to $350 in early afternoon trading. Earlier, shares touched 347. The stock (GREY) closed at 349 1/16.
On Friday, Grey posted earnings for the fourth quarter of $6.5 million, or $4.61 a share, down from $12.4 million, or $8.65, a year earlier. The company had income from commissions and fees of $252.1 million, down from $262 million.
Grey said the Internet unit of an unspecified overseas subsidiary had software-related losses. Grey also said spending cutbacks in Brazil and Russia hurt results.