NEW YORK: The Interpublic Group announced Friday that it will not meet the March 31 deadline for filing its annual report and fourth quarter and full year earnings numbers because of "a number of material weaknesses in internal control."
Additionally, IPG said that it may have to adjust previous financial statements. The company's review has not been completed, but it cited preliminary figures of "$145 million in revenue and $25 million of net income that may have been improperly recognized from 1996 through 2001."
Michael Roth, who assumed the role of IPG CEO in January, said in a statement "Since assuming my new role, I have made clear that the control environment is our most immediate priority."
Roth's statement also said the company regrets the delay, but that it was necessary in order to "move beyond our financial reporting issues."
IPG said it will issue an update on the report's status on March 17. The announcement is expected to cause a further drop in the company's stock price, which has been in decline since early March.
IPG's PR agencies include MWW, GolinHarris, and Weber Shandwick.