ADP Trims 2009 Earnings, Revenue Guidance

The employer services business, which is ADP's largest unit, has been hit hard as clients continue to struggle in the weak economy. ADP now expects revenue growth of about 4%, down from its previous guidance of 5% growth.

Butler did say that despite the difficult selling environment, ADP is set to deliver over $1 billion in new business sales worldwide in 2009. However, the company's new business sales are now expected to fall 13% from the $1.15 billion recorded in the previous fiscal year, compared with the old forecast for a decline of 10%.

Shares of ADP were lately down $1, or 2.7%, to $35.43. Among other business service companies, Administaff (ASF Quote) was flat, while Paychex (PAYX Quote) was falling 4.4%.