Internet Unit Hurts Grey Advertising Profits

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.