First Data

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shares tumbled 8% Monday after the company's Western Union business gave a tepid outlook ahead of its spinoff later this month.

Western Union said it continues to be hurt by slowing demand for money transfers domestically and from the U.S. to Mexico. The company attributed the slowdown largely to uncertainty caused by recent debates over immigration.

"We believe the slowdown related to the immigration debate is a temporary issue, and our 2007 guidance assumes revenue growth in the U.S. and U.S. to Mexico businesses will begin to improve but will not reach levels experienced in 2005," said Western Union President and CEO Christina Gold in a statement.

The money-transfer company forecast 2006 revenue of $4.4 billion to $4.5 billion, an 11% to 12% rise from 2005. The company expects operating income to increase 4% to 6%, to between $1.32 billion and $1.34 billion, excluding expenses related to its spinoff from First Data.

For 2007, Western Union sees 10% to 12% revenue growth, before acquisitions, and 6% to 9% operating income growth.

The company's guidance came as part of the road show presentation for its public offering, which is slated for Sept. 29. First Data shareholders will receive one share of Western Union stock for each First Data share held.

Shares of First Data were down $3.47 to $41.18 in afternoon trading.