Adecco 3Q Net Profit -46%; US Staffing Market Shows Improvement
By Goran Mijuk, Of DOW JONES NEWSWIRES
ZURICH -(Dow Jones)- Adecco SA (ADEN.VX) Thursday reported a better-than-
expected 46% drop in third quarter profit and said that staffing markets in the
U.S., which have been hard hit during the recession, have started to improve.
The Zurich-based employment firm said net profit for the three-month period to
the end of September fell to EUR90 million from EUR168 million a year ago. That
beat analyst calls for EUR50 million, as the company benefitted from cost-
cutting and an unexpected improvement in market conditions in the U.S. and
France.
While sales still fell 27% to $3.72 billion from EUR5.10 billion during the
third quarter, the decline was less steep than in previous quarters, when
revenues dropped more than 30% as weak job markets in the U.S. and France hit
Adecco's top line.
"Market conditions have improved during the third quarter, especially in
general staffing, and we have seen a gradual improvement of the revenue trend,"
said Chief Executive Patrick De Maeseneire.
The company, which recently bough U.S.-based peer MPS Group Inc for $1.3
billion, said it would continue to reduce costs as pricing still remained under
pressure as many companies are still trying to avoid hiring staff.
Adecco's competitors, such as Manpower Inc (MAN) and Randstad Holding NV (
RAND.AE), have already warned that margins would stay depressed.
Despite the market improvement in France and the U.S., the company's key
market, employment trends in Germany remained weak, with sales falling more than
30%. Likewise, hiring activity in the U.K., which is still mired in recession,
was weak.
Company Web Site: http://www.adecco.com
-By Goran Mijuk, Dow Jones Newswires, +41 43 443 80 47; goran.mijuk@
dowjones.com
(END) Dow Jones Newswires
11-05-090139ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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