WPP Cuts Growth Forecast As Clients Slash Spending

Reduction in North American Marketing Budgets Blamed For Slower Full-Year Sales

 October 25, 2012

WPP, the world's largest ad holding firm by revenue, slashed its full-year sales growth target for the second time in two months as clients in North America and Europe cut spending.
The announcement led to stock dropping as much as 5.2%.   Revenue growth for the year, excluding the effect of currency fluctuations and acquisitions, will be 2.5% to 3%, down from an earlier forecast of about 3.5%, the company said in a statement today. That comes on the heels of WPP's announcement in late August that it was reducing its growth forecast from 4%.
CEO Martin Sorrell has been pushing the Dublin-based company into new areas, such as Malaysia and Brazil, to counter slowing growth in more established markets. According to Mr. Sorrell, businesses are starting to express concerns about the health of the U.S. economy, which contributed to a "tough month" in September.