JWT Group Posts Loss of $1.4-Million in Quarter

Beleaguered JWT Group Inc., the parent of the advertising agency J. Walter Thompson, said it had lost $1.4 million in the first quarter, in contrast to a profit of $3.1 million a year earlier.

The company said the loss occurred despite a 6% increase in its fees and commissions in the three months ended March 31 to $158 million.

The first-quarter loss included costs of $2.7 million for termination allowances and for closing of facilities. The company employed 10,297 people at the end of the first quarter, down from 10,512 on Dec. 31.

It was the second consecutive quarterly loss at JWT Group, which has been beset by managerial turmoil since the beginning of the year. The company lost $4.9 million in the fourth quarter of 1986.

In January, JWT Group Chairman Don Johnston fired Joseph O’Donnell as head of J. Walter Thompson after O’Donnell presented a buyout proposal to the board and suggested that Johnston relinquish day-to-day control of the company.

Last week, the chairman and chief executive of Thompson’s domestic operations, Bert Metter, resigned, citing differences with Johnston. In both cases, Johnston assumed the duties of the executives who left.

Among the advertising company’s clients are Kodak film, Ford cars and Burger King restaurants.