LONDON, June 26, 2002 (PRIMEZONE) -- At today's Annual General Meeting Charles Scott, Cordiant's (NYSE:CDA) Chairman, commented: "Trading conditions are still challenging and the Group's expectation is for a decline in underlying revenues in 2002. We do not expect our markets to return to growth until 2003.
In line with our expectations, underlying revenues in the first five months of the year declined by 11%*. This decline reflects the relatively high levels of activity experienced in the first five months of 2001 compared to 2002. Despite this, the Group has continued to meet its internal profitability targets as cost savings initiated in 2001 have been realised.
Many of the markets in which we operate are still difficult and we continue to reduce costs where appropriate. In the current revenue environment our focus is on tight cost control to deliver a recovery in earnings. The Group's target remains a 50% improvement in operating margins in 2002."
26 June 2002
* Underlying revenues are calculated on a constant exchange rate basis and after taking account of prior year comparative revenues from acquisitions.
CONTACT:
Enquiries:
Cordiant
Michael Bungey Chief Executive Officer 44 207 262 4343 Nathan Runnicles Investor Relations
College Hill
Alex Sandberg 44 207 457 2020 Dick Millard
Forward-looking statements: This press release contains certain "forward-looking statements" and information that are based on the current expectations, estimates and projections of Cordiant's management and information currently available to Cordiant. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, some forwardlooking statements are based upon assumptions as to future events that may not prove to be accurate. These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import and, in this release, include statements relating to Cordiant's revenues, profitability and cost reduction programme. Cordiant's actual performance could differ materially from that anticipated depending on, among other things, gains to or losses from its client base, the amount of revenue derived from clients, Cordiant's exposure to changes in the exchange rates of major currencies against the pound sterling, the general level of advertising expenditures in Cordiant's markets, the overall level of economic activity in Cordiant's major markets, employee costs, future interest rates, changes in tax rates and other factors discussed from time to time in Cordiant's public filings with the U.S. Securities and Exchange Commission, including Cordiant's Annual Report on Form 20F. Many of the factors named above are macroeconomic in nature and are, therefore, beyond the control of Cordiant's management. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual performance may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. Cordiant does not intend, and does not assume any obligation, to update the forwardlooking statements contained in this document.