Continental Europe was one hiccup for IPG in 2014. For 2014’s fourth quarter, the effect of foreign currency translation was negative 2.3%. For the full year, the effect was negative 1%.
“We’re not expecting a big recovery in continental Europe,” Roth conceded. “But we’ve made some changes in personnel in continental Europe and we did some acquisitions. We continue to look to bolster our competitiveness there.”
Overall, IPG posted a solid year and outperformed financial projections thanks in part to strong performance from its agencies.
“Looking to 2015, we believe the tone of the business is solid, yet there remains macro uncertainty relating to both the currency environment and Europe,” said Roth. “For 2015, we are therefore targeting 3-4% organic revenue growth, and 80- 100 basis points of operating margin expansion.”