Viacom Cuts Profit Forecast on Local Ads

Viacom Inc. reduced its full-year forecast for profit and revenue, saying advertising sales in local markets were falling short of the company’s expectations.

New York-based Viacom, owner of the CBS television network and the Infinity Broadcasting radio group, said spending by local advertisers, such as car dealerships and movie theaters, hadn’t kept pace with the growth in national accounts that led it to raise forecasts two months ago.

Viacom shares fell $1.42 to $38.90 on the New York Stock Exchange.