Cordiant dropped by as much as 10.6% to 71.5p at one point before pulling back slightly to 73p. Cordiant reported pre-tax losses of 拢270.8m and was hard hit by restructuring costs, which account for a large write-down. Before charges, Cordiant had pre-tax profits of 拢25.7m, compared with profits of 拢57.5m last time.
Despite the losses, Cordiant chief executive Michael Bungey said the group is well positioned to profit quickly from any sustained upturn in the economy.
The market is still waiting to hear the results of the $160m (拢112m) Hyundai Motor America creative advertising pitch. Cordiant-owned Bates USA West, Irvine, California, has made the shortlist.
Earlier in the year, the Korean car group shifted its $300m media account out of Bates and into Carat, owned by the Aegis Group.
By 10.30 this morning, WPP was down 3.22% to 751.5p as it reported a 2% fall in revenues. Like-for-like revenues were down 9%, worse than the 7% analysts had expected.
The larger-than-expected fall was being seen by some as a later return to growth than had been hoped. In particular, WPP was hit hard by the collapse in the public relations market. That sector saw revenues fall by more than 13%.
In interviews this morning, WPP CEO Sir Martin said he could see no sign yet of any recovery in the advertising market.
Sir Martin said: "My personal view is any recovery will be slight and gradual and we will probably have to wait until 2003 to see more improvement."
As analysts digested WPP's weaker-than-expected revenues, they largely retained their cautious outlooks on the group. Cheuvreux restated its "underperform" rating and ABN Amro stuck with its "hold'" recommendation.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .