Diluted earnings per share were $.26, compared to $.22 in 1999. Year earlier results have been restated to reflect several pooling-of-interests transactions.

Worldwide revenues totaled $1.3 billion in the third quarter, compared to $1.15 billion in the prior year. Domestic revenues jumped 24% to $744 million. On a constant dollar basis, international revenues were 18% higher, but unfavorable foreign currency translation impacted reported growth, and revenues advanced just 5% to $576 million. Stable currencies in Asia and Latin America tempered the impact of weaker European currencies. Income from operations advanced 27% in the third quarter to $166.2 million.

Domestic business units reported organic growth of 12% in the quarter, while international units posted organic growth of 17%. Organic growth is defined as revenue changes exclusive of acquisitions and currency effects.

Revenues from specialized marketing and communications services contributed 49% of revenues in the third quarter of 2000, compared to 46% in the 1999 quarter. Sales promotion and direct marketing, which accounted for about one-third of this revenue, grew approximately 36% in the quarter; public relations, accounting for 18% of this category, reported revenues 32% higher; and all other units reported combined growth of 11%.

Another quarter of double-digit revenue growth is the best evidence that our business remains vibrant, said Philip H. Geier, chairman and chief executive officer. Organic growth of 15% demonstrates the vitality of our clients, our industry and the economy.

Results for 2000 are presented exclusive of restructuring charges to facilitate comparison. Restructuring charges relate primarily to merger and other costs associated with the combination of Lowe Lintas & Partners. In the third quarter, the company recognized $27 million of costs related to restructuring, which has been completed. No further costs are expected to be incurred.

New Business

Interpublic’s agency systems gained net new business of approximately $473 million in the third quarter, compared to net new business gains of $417 million in the year-earlier period. Major new account wins in the quarter included 3Com, Kohl’s, Sprint Business-to-Business, Key Corp, Orange Telecom, H & R Block and the U. S. Navy. For the first nine months of 2000, net new business gained jumped 40% to $2.1 billion, compared to $1.5 billion in 1999.

Nine Months’ Results

Net income before restructuring for the first nine months of 2000 was $308.9 million, up 16% from last year’s $266.5 million. Earnings per share were $1.01 compared to $.88 in 1999.

Revenues in the nine months advanced 16% to $3.9 billion, compared to $3.4 billion a year ago. Domestic revenues increased 23% to $2.17 billion, while international revenues grew 8% to $1.77 billion, reflecting the impact of unfavorable foreign currency translation. Constant dollar international revenues increased 16% in the first three quarters of 2000.

Specialty marketing and communications services contributed 47% of revenues year to date, compared to 45% in 1999.

Recent Developments

On October 18, Interpublic sold $500 million 7.875 % of five-year senior unsecured notes in a public offering. The notes, which were priced to yield 7.95%, will replace existing bank debt.