Foote, Cone & Belding Communications Inc. reported record second-quarter net income and revenues but still expressed disappointment in the ”lack of drive” in U.S. advertising expenditures, which has kept revenues below initial 1985 expectations.
FCB said net earnings for the second quarter were $6.1 million, or $1.60 a share, up 34 percent from a restated $4.5 million, or $1.26 a share, a year earlier. Revenues of $75.4 million were up 5.4 percent from a restated $71.5 million a year earlier.
Results for 1984 were restated to include those of Golin/Harris Communications Inc., which was merged into FCB as of Jan. 1 and treated for accounting purposes as a pooling of interests.
Net income for the first half was $7.3 million, or $1.92 a share, up 11.5 percent from a restated $6.5 million, or $1.84 a share, a year earlier. Revenues for the period increased 5.9 percent, to a record $138.6 million from $131 million a year earlier.
FCB President Norman Brown said the ”lack of drive” in U.S. ad expenditures ”includes a number of substantial client budget reductions, as well as some postponement of spending in the second half of the year.
”These actions obviously reflect uncertainties regarding economic growth. How this situation develops, together with changes in currency-exchange rates, will largely determine whether or not the year meets our initial expectations.”
