WPP Warns of 'Very Tough' 2009

Martin Sorrell, head of the world's No. 2 ad agency, warns that U.S. and European sales will likely fall next yearand he's an optimist

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By David Prosser

October 31, 2008 at 6:51 PM UTC

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WPP does not expect to see any significant economic recovery before 2010, the world's second largest advertising company said yesterday, as it warned that it fears 2009 will be "very tough". Sir Martin Sorrell, WPP's chief executive, said major sporting events in two years' time, including the football World Cup and the Olympic Winter Games, would provide the advertising industry with a major boost. But he warned that sales in the US and Western Europe are likely to fall next year, while growth in other markets will be limited.

WPP (WPPGY) posted relatively robust performance figures for the first nine months of the year yesterday, when sales were buoyed by strong growth in Asia, Latin America, Africa and the Middle East, where revenues in the third quarter were up 16.5 per cent. By contrast, sales growth in the UK in the third quarter eased off to 2.9 per cent, compared to 4.6 per cent growth in the first half, while US revenues barely rose at all, after having been up 6 per cent in the previous six months.