Based on the continued "low visibility," Goldman Sachs & Co. dropped 2002 U.S. and global ad growth forecasts to 1.8% each, from 4.7% and 3.2%, respectively.
Goldman Sachs is keeping its 2001 forecasts of a 4.5% drop in U.S. spending and a 2.8% drop globally, stating the decline is a cyclical issue.
Advertising and publishing analyst Michael Beebe lowered his earnings estimates for Gannett Co., Pulitzer, Readers Digest Assoc., Primedia and Dow Jones & Co. based on those expectations; Goldman Sachs favors cable, radio and outdoor, and Spanish-language TV companies based on their strength to weather the cycle. -- Mercedes Cardona
Copyright September 2001, Crain Communications Inc.