Advertising company JCDecaux - which operates street signs in Birmingham - has lowered growth forecasts due to a slowdown in the British and French markets.
The world's second-largest outdoor advertiser said it had toned down its 2005 sales growth forecast despite a 5.2 per cent rise in third quarter sales.
Sales rose to 393.9 million euros (£267.6 million) on strong demand for its transport division, and they came in line with analysts' forecasts.
This was up on the average quarterly sales prediction of 393 . 5 million euros (£267.4 million) made by analysts.
However, JCDecaux shares still fell as much as 2.2 per cent yesterday to a year low of 16.63 euros.
The group said 2005 underlying revenue growth was likely to be between 3.5 per cent and four per cent, with an operating margin likely to be slightly ahead of last year's level.
JCDecaux had targeted 2005 underlying revenue growth of around four per cent.
"This should prevent the stock from picking up in the short-term," said ETC Pollak analysts in a research note.
JCDecaux shares have lost more than 20 per cent this year amid concern over a weak advertising market and after it failed to win a £560 million contract in New York.
Like-for-like sales, excluding acquisitions and the impact of foreign exchange, rose 1.3 per cent in the quarter.
This was a slowdown from 3.2 per cent growth in the second quarter.
JCDecaux said its quarterly performance reflected a revenue slowdown in several European markets, notably France and Britain, which hurt mostly its billboard division, where sales fell 6.4 per cent.
The transport division achieved sales growth of 23.9 per cent, helped by the recent acquisition of Hong Konglisted outdoor advertiser MediaNation. Underlying sales growth in the division was ten per cent.
The street furniture unit achieved "modest" growth of 3.9 per cent in the quarter due to a sluggish advertising market in France.
"This was partly offset by the strong development of our Asian activities and a healthy market in the United States," the company said.