DOW JONES NEWSWIRES 
 

Automatic Data Processing Inc. (ADP) cut its fiscal-year revenue outlook a second time, saying growth has slowed because of the recession, which has resulted in fewer workers at its clients' businesses.

The global payroll-processing company now sees revenue rising 1% to 2%, down 1 percentage point from November's reduced expectations. ADP also expects earnings per share to be at the low end of its 10% to 14% growth forecast.

President and Chief Executive Gary C. Butler said Wednesday the economy has weakened since the prior views were reiterated in early February. ADP now projects 4% revenue growth at its employer-services business, by far its largest unit, compared with its earlier estimate of a 5% gain, amid reduced payrolls at clients.

But Butler said the company is still on track to deliver more than $1 billion in new-business sales this fiscal year, which ends June. The total, however, is likely to fall about 13% from last year, not 10% as previously projected.

Last month, ADP reported modest fiscal second-quarter growth despite the recession, with clients seen holding up well.

ADP's shares were down 0.5% at $36.25 in premarket trading. The stock has lost just 14% of its value in the last year, widely outperforming the broader market.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com