IPG’S Q3 PROFIT SOARS 88% to $45M

Interpublic reported a robust 88 percent rise in third-quarter profit on Oct. 29 to $45.3M on a 9.4 percent jump in revenue to $1.6B.

CEO Michael Roth says the performance demonstrates that the parent of Weber Shandwick, MWW Group and GolinHarris is “back on the path to significantly improved profitability.”

He noted that Interpublic recorded 10 percent organic growth in the U.S. and double-digit increases in developing countries.

During the nine-month period, the ad/PR combine earned $63.2M vs. a $15.1M year ago loss. Revenue was up 6.9 percent to $4.5B. Salaries/related expenses for the year rose a modest 2.4 percent to $3B. There was a sharp decline in severance outlays, plummeting from $94.9M to $43.5M.

Harris Diamond, Weber Shandwick CEO, told O’Dwyer’s that IPG’s PR units operated on all cylinders during the quarter. PR is outperforming other communications disciplines due to a greater understanding among CEOs and CMOs of its ability to sell products and influence opinion, according to Diamond.

Though organic growth drove IPG’s PR unit during the first-half, Diamond said there’s been a dramatic pick-up in new business wins. “We are aggressively hiring,” he added.

Fitch Ratings Oct. 29 upgraded IPG’s outlook to “positive” from “stable” noting its agencies have reduced exposure to U.S. advertising cycles by diversifying into international markets and marketing services businesses. Fitch upped IPG’s issuer default rating from BB+ to BBB.

GCI TAPS NOVARTIS VET FOR SOCIAL MEDIA

GCI Health has brought in Novartis Pharmaceuticals social media director Mark Davis to lead its digital health operations.

GCI, part of WPP’s Cohn & Wolfe, said Davis has been asked to “broaden the strategic vision” for its digital health offering, while also handling client work and new business under CEO Wendy Lund.

Davis handled regulatory and legal issues in social media, among other duties developing digital communications across Novartis’ brands. Prior to seven years there, he was VP/consumer experience at Merck-Medco after stints at Prudential and American Express.

Last month, GCI unveiled a new healthcare unit, Synchronicity, focused on patient and provider education.

C&W REPS GREENPEACE FOE

Clark & Weinstock is repping Asia Pulp & Paper, which has been fighting charges that it illegally dumped its coated paper products in the U.S. That tussle is with the Dept. of Commerce and International Trade Commission. AP&P plans to appeal the duties proposed on its imports to the U.S.

Former Congressman Vin Weber, ex-Newt Gingrich advisor Ed Kutler, and former chief of staff to Rep. Vic Fazio (D-Calif.), Sandra Stuart, form the AP&P team.

Shanghai-based AP&P, which also works with GolinHarris, is a top target of environmental group Greenpeace, which charges that its logging practices are leading to the deforestation of Indonesia.

Greenpeace has released a critical report of AP&P activities that was based on leaked corporate documents. AP&P, in September, issued an independent audit of the Greenpeace study that claimed it was “highly misleading and indefensible."

Greenpeace, last month, said Indonesia barred its Rainbow Warrior flagship from its waters. Campaigners on the ship wanted to highlight the dangers of deforestation in Indonesia, which is the world’s No. 3 emitter of global warming gas. Indonesia’s government banned the ship due to a “lack of clarity over its planned activities,” according to Agence France Presse.

DEKALB SCHOOLS OUTSOURCE PR TO C&W

The DeKalb County School System in the metro Atlanta area has hired Cohn & Wolfe as it outsources its communications operations following an RFP process.

C&W will get a $262,000 annual fee from the district, which has 99,000 students.

The school system in late August issued an RFP for media relations, information transmission, publicity development and news distribution to reach its stakeholders. The contract is in place of its seven-member PR staff, which is being eliminated.

Atlanta PR shop The Echols Group was the only other firm pitching and it presented a $97K proposal for 55 hours a month, but the district estimated the work at closer to 160 hours per month.

Meanwhile, Mark Cater, a healthcare agency pro who left C&W late last year for a U.K. post at Chamberlain Healthcare Communications, will be returning to head its flagship New York office this month.

Cater, who starts Nov. 22, directed C&W’s Europe, Middle East and Africa operations after heading GCI/U.K. until its merger with C&W in 2008.

STUDY: PR HAS QUIET $445M IMPACT IN L.A.

Los Angeles county PR agencies have a $445M impact on the county’s economy, or about $1M per agency, although its economic might often flies under the radar, according to an analysis by the L.A. County Economy Development Corp. commissioned by PRSA/L.A.

The study claims that for each of the nearly 3,830 PR agency jobs (including 731 independent consultants) in the area, 1.7 jobs outside the industry are supported. The area also includes about 10,370 PR pros at corporations and other entities.

“It is clear that the reach of public relations goes far beyond the single industry and is felt throughout the economy,” the report states.

Total annual earnings for PR professionals – agency, corporate and other entities – reached $780M in 2009.

Jobs Declined ‘Significantly’ Since ’01

But the study found that employment at PR agencies has declined significantly since 2001, although it is 23 percent higher than it was in 1990 – 2,466 in 1990, compared with 3,030 in 2008. By comparison, advertising employment fell five percent during that period.

PR employment peaked at 3,079 in the second quarter of 2008 and has fallen steadily since then to about 2,474 in Q3 of 2009, the study found.

Eric Moses, director of comms. and PA for Occidental Petroleum, said the figures show that PR contributes “significantly” to the county economy and supports jobs in associated industries, often without much attention.

The L.A. PR business accounted for $445M in labor income, state and local tax payments of $45.3M in 2008 and helped sustain more than 6,400 other jobs, the LAEDC report said.

The average annual PR agency wage in L.A. in 2008 was $78,129, 50 percent above the average of all works in the county.

The LAEDC found that PR firms have increased by 15 percent since 1990, from 386 to 445.

FENTON OPENS IN L.A.

Fenton Communications has opened its fourth U.S. office, a Los Angeles outpost, following its pickup of a lucrative California account earlier this year.

CEO David Fenton said its L.A. work will initially focus on the First 5 LA account, a multimillion-dollar state-funded advertising and PR push for early childhood education. West coast managing director Peter Blackman heads the office with new hire Paul Hernandez overseeing day-to-day operations.

Hernandez was recent managing director at legal services firm Sonnenschein Nath & Rosenthal and was director of comms./PA for The California Endowment.

Fenton picked up the $3M First 5 account after being tapped for project work January which was later expanded to four firms in an RFP process.

The outpost is at 515 South Flower Street, 36th floor, Los Angeles, CA 90071.

POLANSKY TO HEAD COUNCIL

Weber Shandwick president Andy Polansky has been elected chair of the Council of PR Firms for 2011.

APCO Worldwide CEO Margery Kraus is winding down her term as 2010 chair of the group.

Polansky, a 20-year veteran of Interpublic-owned WS, said his focus as chair will be to make sure the group “continues to raise its game, on all fronts, to match the needs of the industry and our members.”

Also tapped as executive officers for the 2011 board were treasurer Ken Eudy, co-founder of Raleigh-based Capstrat and secretary Laura Tomasetti, at 360 PR in Boston.

New board members at the council include agency chiefs Amy Binder of RF Binder Partners; Sharon Linhart, Linhart PR; Elise Mitchell, Mitchell Comms. Group; Gary Stockman, Porter Novelli, and Janet Tyler, Airfoil PR.

Cathy Cripps is president of the Council, which counts more than 100 member firms.

REED TACKLES HUMAN RIGHTS IN CONGO

Reed International Law and Consulting is working to promote human rights in the Democratic Republic of Congo and build an infrastructure to foster the growth of democracy in that shattered land.

Kimberly Reed, owner of the metro D.C.-based firm, spearheads the effort on behalf of Belgium’s Tango Ekoki International, a non-profit that is backed by financier Jean-Paul Moka. He is running an online presidential campaign for the election slated for next year.

More than 6M people have been killed in wars in the DRC during the past decade. Rebel forces have conducted in mass rapes in the eastern part of the country. A United Nations peacekeeping force in the Congo reported that 300 women were raped by militants from July 30 through Aug. 2.

DRC president Joseph Kabila, who took over following the 2001 assassination of his father, has vowed that all crimes against civilians will not go unpunished.

Reed International is setting up a U.S. branch of Tango Ekoki Reed will serve as interim executive director until a full-time staffer is on board. She is to meet with U.S. government officials to discuss healthcare, human rights, ongoing violence against women, educational opportunities for young Congolese and prospects for a fair election.

APCO TAPS EDELMAN PRO FOR PARIS

APCO Worldwide has hired Nicolas Bouvier, former executive VP at Edelman, for the deputy managing director slot in Paris.

The PA veteran helped Edelman bolster its crisis and corporate practices, focusing on areas such as branding/restructuring, mergers/acquisitions, alliance development with NGOs, sustainability and regulatory compliance.

Earlier, he was managing partner at Omnicom affiliate Communication & Institutions, where he worked for 18 years. Bouvier heads the ethics committee of the French Public Affairs Consultants Assn. He reports to Philippe Maze-Sencier, APCO’s managing director in Paris.

NEWSPAPER CIRC DROPS 5%

Average weekday circulation at 635 newspapers dipped five percent for the six-month period ended September 30, according to the Audit Bureau of Circulations. That compares to a 10.5 percent plunge during last year’s period.

The Wall Street Journal, which ranks as the No. 1 paper with a circulation of 2.1M, was the only Top 10 paper to post a gain. It was up 1.8 percent. The Journal factors in 450K electronic subscribers to its numbers. USA Today fell 3.7 percent to 1.8M, while the New York Times slid 5.5 percent to 876,638.

Rounding out the Top Ten are Los Angeles Times (down 8.7 percent to 600,449), Washington Post (-6.4% to 545,345), New York Daily News (-5.8% to 512,501), New York Post (-1.3% to 505,501), San Jose Mercury News (477,592, `09 figures not available), Chicago Tribune (-5.2% to 441,508) and Houston Chronicle (-10.5% to 343,952).

Cablevision’s Newsday was the biggest loser among the Top 25. Circulation plummeted 11.8 percent to 314,848. The San Francisco Chronicle fell 11.2 percent and the Newark Star-Ledger slid 9.3 percent to 223,037. The Dallas Morning News was the only other paper to post a gain, up 0.3 percent to 264,459.

The combined Sunday circulation of 553 papers dipped 4.5 percent, an improvement from the 7.5 percent plunge in `09.

ABC's DUBE MOVES TO AOL

Jonathan Dube is joining AOL as senior VP/GM of its news and information unit. His responsibilities include AOL's news, finance, tech and sports operations.

Most recently, Dube was at ABCNews.com, handling strategic planning, strategy, editorial content and production.

Dube is two-time president of the Online News Assn, and currently serves on its board of directors. Before ABC, Dube was senior digital media executive for the Canadian Broadcasting Corp, and managing producer at MSNBC.com.

At AOL, he reports to David Eun, president of AOL Media & Studios.

MOST FAVOR U.S. FUNDING OF NPR

Most Americans favor continued U.S. Government support for National Public Radio in the aftermath of the firing of Juan Williams for expressing his view of being nervous at airports upon seeing people dressed in Muslim garb.

Forty-five percent of respondents support funding, while 39 percent want Uncle Sam to pull its money from NPR, according to a Poll Position survey taken Oct. 25.

Funding splits Democrats and Republicans. Fifty-eight percent of Dems support funding, while 28 percent of GOPers do. Forty-nine percent of Independents back funding, 38 percent are against.

The U.S. accounts for about 16 percent of NPR's funding. Poll Position is a public opinion research firm founded by Eason Jordan, former chief news executive at CNN, and Jeff Shusterman, co-founder and president of Majority Opinion Research.

POLITICO ROLLS PAID SITE

Politico plans to introduce Politico Pro, a paid service focused on energy, healthcare and technology for lobbyists, trade officials and public officials who want the inside scoop on the policy scene.

A sub will cost up to $1,495 for Congressional offices and to $2,000 for those working the Hill.

Jim VandeHei, executive editor of Politico, says the market for detailed behind-the-scene information is “underserved.”

WADE STEPPING DOWN AT CBS

LeslieAnne Wade, senior VP of communications for CBS Sports, is stepping down from that post to start a media strategy and PR firm.

CBS said she’ll transition to a consulting role in November to advise CBS Sports on corporate and media relations issues as a client of her firm.

A successor to Wade will be named at a later date, the company said.

Wade, who was promoted to senior VP in 2008, will be wrapping up a 17-year stint in-house at CBS, which she joined from USA Networks.

“There’s nobody better in a crisis, and her knowledge of the ins and outs of the sports communications game, and the people on the field, is unequaled,” said Gil Schwartz, executive VP and chief communications officer at CBS Corp.

Earlier, she was sports information director at Fordham University and Manhattan College.

AMERICAN MEDIA PLANS CH. 11 FILING

American Media said Nov. 1 it will file a prepackaged Chapter 11 bankruptcy to restructure its finances, a move that is not expected to affect its publishing operations.

The parent company to publications like The National Enquirer, Men’s Fitness, and Natural Health has informed its investors that the filing could come within two weeks.

The reorganization is centered on a debt-for-equity exchange with a group of its bondholders, about 80% of which have agreed to support the restructuring, the company said.

Its debt load was not disclosed by the company but has been reported in the $1.6B range.

“For our advertisers, employees, customers and vendors, this short period will be business as usual, with considerable upside in the future,” said David Pecker, chairman, president and CEO. “American Media is engaging in this strategy from a position of financial strength and confidence.”

AM said it will emerge from Ch. 11 within 60 days.

Added Pecker: “Publications will function seamlessly, staff will be unaffected by the reorganization and customers should not notice any difference during the 60 day process.”

Pecker said the company has strong cash flow and cash-on-hand.

AM is based in New York.

(Media news continued on next page)

ECONOMIST UNVEILS BRANDING PLATFORM

The Economist Group Oct. 27 launched the Ideas People Channel, a branding platform to help marketers reach consumers based on personality attributes vs. demographics.

The Channel is launched in conjunction with nearly 30 publishers that were identified by Economist readers as their favorite online destinations.

Joining The Economist on the site are The Nation, New Republic, Talking Points Memo, American Prospect, Mother Jones, Kiplinger, Daily Kos, Political Wire, Christian Science Monitor, Alternet, Technology Review and Roll Call.

The Channel covers 21M people who are “intellectually curious, opinionated, influential and passionate about business, globalization, innovation and culture,” according to the release.

Stephane Pere, VP and chief of Ideas People Channel, says the new platform marks a return to “common-sense media planning.”

He believes it’s wrong to think “you can buy audience with technology. Cookies are not readers; editorial environment is key.”

IE Business School, which is in Madrid, is Ideas People Channel’s charter advertiser.

LEVINSOHN JOINS YAHOO

Ross Levinsohn is joining Yahoo! this month as executive VP for the Americas in charge of media operations, ad sales and corporate partnerships. He replaces Hilary Schneider who resigned in September.

Levinsohn served as president of News Corp.’s Fox Interactive, where he led Rupert Murdoch’s $1B foray into digital, a drive was capped by the ill-fated acquisition of MySpace, which is currently being reorganized.

Upon exiting Fox Interactive, Levinsohn was co-founder and managing director of Fuse Capital, an equity firm focused on the digital space. Earlier, he held posts at AltaVista, a search site; CBS Sportsline and HBO.

Carol Bartz, Yahoo CEO, says the Levinsohn hire will “allow us to solidify our position as the largest digital media, content and communications business around the globe.”

DENTISTS DROP SUIT VS. MOMMY BLOGGER

A Manhattan dental practice has dropped a suit against mommy blogger Lyss Stern after the Daily News reported the “play for pay” story Oct. 25.

Lowenberg & Lituchy, according to the suit, alleged that Stern agreed to run a four-page “puff piece” touting its “achievements and advancements” in the New York Observer “Playground” advertising supplement, which she edits, in return for dropping her nearly $45K dental bill that was wracked up last October and November.

The Central Park South dentists sued after the piece didn't run in December as expected. Michael Laufer, a lawyer for L&L, which bills itself as the dentists to “models” and “rock stars,” told the Daily News that the legal matter is now closed.

Lyss is founder of the Divalysscious Moms blog. The site says it was “born to bridge the gap between a glam, pre-baby lifestyle and a post-baby life where, well, let's just say there are more midnight feedings than midnight soirées.”

IACONO EXITS PRWEEK

Erica Iacono is moving from executive editor at PRWeek to an account supervisor/senior new business post at Ketchum. She worked at the Haymarket Media entity for six years.

Another PRWeek alum, Tony Garcia, broke the story from her perch at PR Newser. Garcia worked at PRWeek for three years.

Iacono is the latest to leave the monthly magazine. Garcia reported Oct. 22 that Kimberly Maul, corporate reporter at PRWeek, is joining eMarketer’s social media group on Nov. 1. The magazine is looking for a replacement.

PRWeek veteran Julia Hood became president of the Arthur Page Society on July 12. She was editor-in-chief at PRWeek from 2002-08. Hood exited as publishing director at PRWeek and sister publication, DMNews.

PRWeek’s editor-in-chief Steve Barrett assumed that position in March. He took over for Keith O’Brien, who left in '09.

BRIEFS ______________________

Anders Gyllenhaal, executive editor of the Miami Herald, has been named VP of news and D.C. editor for The McClatchy Company.

He joins McClatchy’s management team and is the top news executive for the company. He’ll also oversee McClatchy’s Washington bureau and foreign news bureaus.

Managing editor Aminda Marques Gonzales takes his post at the Miami Herald.

Maura Reynolds, a senior editor for CQ, has joined Bloomberg News’ Washington, D.C. bureau as an editor on its Washington Finance team. Kimberly Hallock, managing editor of legislative information for CQ Weekly, has moved to Bloomberg.com as an online editor.

Marion Asnes, former editor-in-chief of Financial Planning magazine, has been named managing director and chief marketing officer for Envestnet Asset Management, Chicago.

Asnes led the redesign of FP and its website, including a new section on wealth management. She also led the magazine’s partnership with Envestnet.

Phil Albinus, editor of the securities technology publication Waters, has moved to InformationWeek’s Advanced Trading, as editor.

Waters is owned by Incisive Media.

Lee Wolverton is slated to join the Amarillo (Tex.) Globe-News as executive editor Nov. 15. He was editor and general manager of the News Virginian and has held posts at the Beaver County (Pa.) Times, Pittsburgh Tribune-Review and the News-Press in Fort Myers, Fla.

FOURSQUARE HIRES KAPLOW

Foursquare, the year-old geo-location application with more than two millions users, has brought in Kaplow PR, its first firm.

The company, which has raised $20M in venture funding and vaulted to the top of a category many predict will be the next big thing in digital PR and marketing, heard from a handful of agencies without a formal RFP process.

New York-based Foursquare combines social networking, geo-location and gaming as it lets users “check-in” at places like restaurants and other locations to earn badges.

EISBRENNER MARKS 25 YEARS

Eisbrenner PR, Royal Oak, Mich, is marking its 25th anniversary with a new office in downtown's Detroit’s “TechTown.”

President Tom Eisbrenner said the firm has always had a presence in the city through clients, associations and events, but “it’s time we have a physical presence as well.”

He added: “The additional office drives the firm's involvement with what's going on in Detroit and it reflects our passion and motivation to help the city thrive.”

The outpost opened Nov. 1 temporarily in the city's business incubator known as TechOne with plans to move to TechTwo, the former Dalgleish Cadillac building, upon completion of its renovation.

The firm, which is part of the IPREX network of independent agencies, recently moved from Troy, Mich., to Royal Oak after 23 years.

The TechOne office is at 440 Burroughs St, #312, Detroit, MI 48202.

Ray Eisbrenner founded the firm on Oct. 25, 1985.

ABMAC HANDLES FEED RECALL

The Abernathy MacGregor Group is working with Goshen, Calif.-based Western Milling, as it announced a voluntary recall Oct. 21 of types of its store brand noncommercial turkey feed.

The company said it learned that the feed may contain monensin, a medication included in medicated turkey feed. Consumption of monensin in excessive volume by turkeys could cause injury or death.

The products were distributed in May and June to 57 retailers in California, Arizona, Nevada and Hawaii.

Abernathy’s New York office is handling media.

PAN MOVING TO BOSTON

PAN Communications, Andover, Mass., said it will be moving its headquarters to 255 State Street in downtown Boston in June.

The firm has been based in the Boston suburbs for 15 years but recently negotiated a 15,000-square-foot-plus office space on the Boston waterfront.

President and founder Philip Nardone said the “milestone” is the first critical building block for the company's next phase of growth and overall strategic direction. “We are now in a position to take the next natural step for our organization,” he said.

CISION REVENUE SLIPS 18% IN TURNAROUND

Cision posted an 18 percent dip in third-quarter revenue of SEK 265M (about $39.5M) compared with 2009 as CEO Hans Gieskes said North American margins remain “very solid” while its turnaround effort in Europe is “progressing according to plan.”

For the nine months of 2010, Sweden-based Cision’s revenue was down nearly 26% over 2009 as the company unloaded unprofitable businesses, revamped its operations, and was affected by a negative currency impact.

Net profit swung positive to SEK 20M ($3M) from negative SEK 309M (-$46M) for Q3 of 2009.

Gieskes said the company’s main focus is to return to organic growth on the strength of its CisionPoint PR software, a push which will include sales and marketing spending in addition to new services.

In North America, Q3 revenue was essentially flat – SEK 189M, compared with 190M for Q3 of ’09. Its decision to outsource broadcast monitoring to Critical Mention will help reduce fixed costs, Cision said.

The company reiterated its belief that the PR software market will consolidate over the next few years because such services are “complex and expensive to develop.”

Executives Shuffled

Cision also said last week that after two years as CEO for Cision Europe, Peter Granat will return to the U.S. to assume the new role of president and COO for Cision North America, effective January 1.

Yann Blandy, currently senior VP for business development for Cision Europe based in Stockholm, will succeed Granat as CEO for Europe.

“We’re delighted to have Peter back at Cision North America, which today represents 70% of our global business,” said Gieskes.

Blandy has been with the company since 2006.

VOCUS REVENUE RISES 17%

PR software provider Vocus posted a $742K net loss for the third quarter on revenue of $24.7M, a 17% revenue rise over Q3 of '09 but a wider loss from $382K for the period last year.

“We’re very pleased with a number of achievements and positive trends in our business,” president and CEO Rick Rudman said in a conference call.

Rudman said the company has sold about $1M worth of subscriptions to its four-month-old social media monitoring platform, which he predicted could grow to as much as $5M in annual revenue in the next year or so.

The next release of that platform, which will expand its use for the small business market, is slated for early 2011.

The PR software and services provider said to added 579 net new subscription customers – Hormel Foods, Dow Corning and the U.S. Dept. of Energy, among others – ending Q3 with 7,752 clients. President and CEO Rick Rudman said Vocus expects to reach 10,000 customers by next year.

Vocus expects revenue in the $25.6M to $25.8M range in Q4.

FTI: BIZ SECTOR HOPING FOR GOP GAINS

The American business sector is down on President Barack Obama’s economic policies and was rooting for big Republican wins in this week’s mid-term elections, according to a poll by FTI Consulting, the parent company of FD.

Seventy-eight percent among 400 U.S. investors, financial advisors and small and large business owners polled by FTI in mid-October said the best electoral outcome would be for Democrats to lose majority control of at least one house of Congress, while 55 percent saw both houses changing hands as the best outcome for business.

“Right now, businesses are choosing the status quo over calls for change,” said Edward Reilly, CEO Americas of FD. “They believe the most favorable environment for them would be to slow down change, and they see that as more likely with divided government.”

A majority, 64%, said Republican control of Congress would lead to improved economic conditions, including 60% who expect a hiring increase and 56% who said capital expenditures would tick up.

Two-thirds of respondents disapprove of President Obama’s job performance managing the economy, while 68% said the administration does not understand the challenges facing American business.

Fifty-six percent of respondents said that Obama and congressional Democrats have not set a clear direction for U.S. economic policy and that lack of clarity is causing uncertainty for companies and investors.

Healthcare and financial reform seem to be at the root of those negative numbers for the White House.

Nearly 70% cited healthcare reform as having a negative impact on their business and investment interests, while 65% cited financial services reform.

BP TAPS DEMPSEY FOR D.C. RELATIONS

BP has tapped a company VP who handled external affairs in Florida during the Gulf oil spill to serve as BP America’s liaison to stakeholders in Washington.

Ray Dempsey, VP, strategy and portfolio for the company’s fuels value chain strategic performance unit, has been tapped as VP of government and public affairs for BP America.

Dempsey, a 20-year veteran of BP, was part of the company's response team to the Deepwater Horizon oil spill, serving as a spokesman handling “information sharing” in Florida for the company during the crisis.

Dempsey testified before the House Committee on Homeland Security Subcommittee on Management, Investigations and Oversight on June 12.

He said during that appearance: “As a senior BP official in the Florida Unified Command, I have spent substantial time working with government officials at all levels to address concerns, to discuss requests and recommendations, and ultimately to take the appropriate actions to meet our responsibilities in the Gulf region.”

New BP CEO Robert Dudley has taken some heat over recent comments to a U.K. lobbying group that he saw “a great rush to judgment by a fair number of observers before the full facts could possibly be known…” during the Gulf spill operation.

KEKST WORKS FENDI WIN OVER BURLINGTON

Kekst is promoting Fendi’s legal victory over Burlington Coat Factory over the alleged sale of “knock-off” leather goods. The settlement calls for Burlington to pay the Italian fashion house more than $10M.

Fendi, which is part of Kekst client LVMH Moët Hennessy Louis Vuitton, originally charged Burlington with selling fake handbags in 1986. A payment the next year followed with a consent order that Burlington would not purchase or sell any Fendi branded goods without written permission.

The new settlement keeps the consent order in place and gives Fendi “some hope for the future,” according to a statement from its CEO Michael Burke.

He is buoyed by the court’s decision that makes it clear that retailers are “responsible for making sure that trademarked products sold to the public are authentic and that the consequences when a retailer sells counterfeit goods are serious.”

Burke hopes when future counterfeit problems arise, “retailers will be responsive in addressing the problems promptly and that litigation will be unnecessary.” Trademark counterfeiting is a “global challenge facing Fendi and every other brand owner,” said Burke.

Kekst partners Jim Fingeroth and Victoria Weld represent Fendi.

Burlington Coat Factory lost $35.3M on $1.6B revenues for the six-month period ended July 31. It has 450-plus stores.

WARSCHAWSKI ACQUIRES BOSTON PR SHOP

Baltimore-based Warschawski has acquired Louder Than Words, a five-staffer PR shop in Boston led by a former Warschawski hand.

The deal closes Nov. 1. Terms were not disclosed.

Rich Polt, president of LTW who founded the firm in 2003, was a VP at Warschawski in the late 1990s. He's relocating to Baltimore as a senior VP, while LTW VP Tricia McKenna stays behind in Boston to run that office.

LTW clients include Brand Affinity Technologies, Nonprofit Finance Fund, and Andrea and Charles Bronfman Philanthropies.

Polt, a former Schwartz Communications staffer, said that LTW clients will gain access to Warschawski’s services beyond PR, including design, advertising and interactive.

“I could not be more excited about rejoining my former agency and returning to my hometown of Baltimore,” he said.

CC&H PUSHES FOR BULLET TRAINS

The American High Speed Rail Alliance has hired government relations firm Chambers, Conlon & Hartwell to push for a national bullet train system as concerns rise over cost and benefits of such a network.

CC&H’s team includes partner Chuck Baker, who also serves as president of the National Railroad Construction & Maintenance Assn., and Katie Kachel, former aide to Senator Barbara Mikulski (D-MD).

The Alliance is looking for at least $50B in initial funding for an intercity passenger rail system and subsequent annual appropriations of at least $4B.

New York PR groups, far less active than they once were, need a “home.”

While doing research on changing PR practices, we came across a 1975 list of 24 New York City PR groups and find that, regrettably, many of them have vanished.

By far the most active group currently is New York Women in Communications, which has 1,300 members and a schedule of more than 75 events in 2010.

It broke away from the national Assn. of Women in Communications in 1997 and has flourished. Its signature event is the Matrix Awards lunch at the Waldorf-Astoria that raises more than a half million.

What’s needed is a neutral meeting place funded by many of the existing PR groups.

PR firms such as Ruder Finn, Manning, Selvage & Lee and Burson-Marsteller donate space for PRSA/New York meetings but many agencies will not send their employees to another PR firm.

It’s obvious that PRSA/NY, with only about 750 members (vs. the 1,200+ that it once had), should have broken away from national many years ago.

Casualties include:

--The Chemical Communications Assn. whose members were 60 corporate, agency people and editors in the chemical industry. They lunched on the second Tuesday of the month at the Williams Club, 24 E. 39th st. Dues were $20 a year.

--The Financial Relations Society consisted of 50 corporate PR pros who had dinner meetings on the second Monday at the Princeton Club and various restaurants. Dues were $60.

--Hospital PR Society of Greater New York had 80 members and met at lunch or dinner. Dues were $25. Contact was Grace Kraskin of Beth Israel Medical Center.

--The Monday II Group was 20 New York corporate PR people who represented companies based outside of New York. Lunches at the Sky Club and other restaurants were held on the second Monday. There were no dues.

--National PR Council of Health and Welfare Services was a national group of 2,000 PR and fundraising executives of nonprofits based in New York at 820 Second ave. It was absorbed by PRSA in the late 1970s.

--New York Airline PR Assn. that had 58 members who worked for airlines serving New York. The group became the North American Airlines PR Assn. and had monthly meetings until 2008 when it made its final landing. A member said that with airline h.q. flying outside New York and declining funds available to PR, the group has become inactive. Hope remains for a rebirth. Contact Jennifer Janzen now works in Berlin on social media for Lufthansa.

--New York Business Communicators had 175 members who met monthly at different places. Dues were $55 yearly. Contact was Bill Nicolai at American Standard. Anyone in “business communications” could join.

--Paper Industry PR Group had monthly luncheons. Members included St. Regis Paper, Boise Cascade, Mead Westvaco, etc.

--Pride & Alarm had 20 mostly agency members who lunched once a month at the Wings Club. P&A, so-named because PR pros are always “pointing with pride or viewing with alarm,” created accreditation in 1964. Originally it was meant for agency people to give them a leg up on the competition but corporate PR people insisted on being added.

--PR Roundtable was about 50 PR pros who handled house PR for PR firms or ad agencies. Monthly lunches for many years featured media figures such as “Johnny Apple” of the New York Times. It also hosted a major holiday party each year for members and the press. The job of handling “house PR” for a PR firm or ad agency has almost entirely vanished.

--Shop Talk, two top executives from a dozen of the biggest PR firms, had dinner meetings at the Sky Club atop the Met Life building to discuss such topics as wages paid, insurance plans offered to employees, and employee benefits in general. Anti-trust considerations may have spelled its doom.

--Wall Street Irregulars had monthly lunches and an annual golf outing. Its 40+ members, including financial press, met at moderately-priced restaurants. James Catalano, formerly of Hill & Knowlton and then Marine Midland Bank, ran the group.

--Wednesday PR Group was about 25 solo practitioners or owners of small PR firms who lunched monthly at the Williams Club.

--Women Executives in PR merged in 2006 in its 50th year with Advertising Women of New York. Founded by Denny Griswold who also founded PR News with her husband, Glenn Griswold, WEPR had 75 members in 1975.

NYWICI, PCNY, PRSA/NY Are Active

PRSA’s New York chapter is the second most active group after NYWICI with about 25 programs in 2010. Its main event is the awards cocktail party each May. Other events are workshops and seminars on specialized topics.

During the 1960s and 1970s the chapter hosted monthly lunches at the Waldorf-Astoria attended by more than 300. Prominent speakers included authors and journalists, political figures and corporate executives. Kerryn King of Texaco arranged for Bob Hope to address one of the lunches.

Publicity Club of New York, which for many years hosted weekly “Thirsty Thursdays” at which editors spoke to about 50 members, will put on seven programs in 2010 including “New York Tech Influencers” Nov. 12 at noon at the 3 West Club.

Daniel Sieberg, host of “Tech This Out” ABC News, will speak.
Attendance at PCNY events is around 100.

PCNY in the 1960s and 70s had an annual “Introduction to PR” course at night that drew hundreds.

Himler of PCNY Targets “Influencers”

Peter Himler, formerly of Burson-Marsteller and Edelman, has been president the past ten years. He said he has trouble getting people to serve on the board.
Himler, who is unpaid, believes that the main job of PR pros is interacting with “influencers” or “experts” who work in or for the media although social media are also important.

PCNY had revenues of $53,806 and expenses of $54,931 in the year ended June 30, 2009.

Entertainment Publicists Professional Assn., www.eppsonline.org New York chapter, has two events for the fall, “How to Pitch Monthly Magazines” on Nov. 17 and “Websites & Blogs,” Dec. 15.

The Los Angeles chapter has monthly luncheons featuring editors.

EPPS, with about 400 members, had revenues of $54,012 and expenses of $65,442 in 2008, the latest year available on GuideStar.

Cash/savings were $89,676 at the end of the year. EPPS leaders include Henri Bollinger of Henri Bollinger Assocs., and Scott Pansky of Allison & Partners.

— Jack O'Dwyer