Charges at Cendant Hurt 3Q Earnings

Share this article:
Cendant Corp., Parsippany, NJ, last week reported revenue increases for the third quarter, but those gains were wiped out by charges taken for the investigation of accounting irregularities and a severance package for departed chairman Walter Forbes.


Revenue grew 23 percent to $1.46 billion, yet earnings per share dropped 39 percent to 14 cents because of 10 cents in charges. Net income also fell 40 percent to $123.1 million. Adjusted for the charges, EPS rose 20 percent over the same period a year ago to 24 cents.


The alliance marketing division, which generates most of Cendant's direct marketing business, reported revenue growth of 14 percent -- the slowest of its three business divisions -- but saw earnings before taxes, depreciation and amortization fall 60 percent.


As part of a restructuring intended to improve the division's operating performance, senior management changes have been announced. Cendant chief financial officer Michael Monaco has been named chairman/CEO of alliance while alliance CFO Michael Wargotz becomes CEO of the lifestyle unit and alliance chief operating officer John Chidsey becomes CEO of the insurance/wholesale unit.
Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Russ Klein Tapped to Head American Marketing Association

Russ Klein Tapped to Head American Marketing Association

The former Burger King and 7-Eleven CMO takes over as the organization looks to expand globally.

Publicis Launches New Digital Agency

Publicis Launches New Digital Agency

Roar, an amalgam of top digital talent from across Publicis Groupe, will be led by Zenith OptiMedia veteran Sean Reardon.

RAPP Names Orlov CEO

RAPP Names Orlov CEO

The Volkswagen marketing executive is a veteran of Wunderman and WPP.