Investors had barely settled into their chairs at the annual meeting in London of Saatchi & Saatchi, the world's largest advertising agency, when Chairman Maurice Saatchi unloaded his uncomfortable secret. The firm's profits, he said, will slump during 1989 for the first time since the agency was founded 19 years ago. Said he: "It's going to be a tough year." Stunned by the abrupt reversal at the juggernaut company, analysts slashed their predictions of its 1989 profits from $280 million to about $165 million. The company's stock plunged, falling more than 15% on the day of the announcement.
Maurice Saatchi attributed...
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