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Adecco: No slowdown, revenue up 36%

November 09 2010

Adecco SA, the world's largest staffing firm, reported no signs of a slowdown as it announced a 36% year-over-year increase in third-quarter global revenue to euro5.06 billion (US$6.88 billion).

There was good demand across most markets in the third quarter, CEO Patrick De Maeseneire said.

"Growth in our main markets, France and North America, remained very robust," De Maeseneire said, adding that the company also saw growth in other European markets.

"Demand remained very healthy in the industrial segment, while the office business returned to organic growth and our professional staffing business clearly accelerated," he said. "Pricing, in the temporary staffing business, stabilized since the beginning of the year."

Adecco reported that on an organic basis its total third-quarter revenue rose 17%. Organic growth excludes the impact of currency, acquisitions and divestitures. The company acquired U.S.-based MPS Group Inc. on Jan. 19. MPS had ranked as the 13th largest U.S. staffing firm last year based on 2008 U.S. staffing revenue.

Adecco's North American revenue rose 78% in the third quarter, or 20% on an organic basis, to euro994.0 million (US$1.35 million).

North American industrial staffing revenue rose 37% in the third quarter on a constant currency basis (including acquisitions). And Adecco's North American office staffing business rose 19% in constant currency, or 14% organically.

Revenue in the company's engineering & technical business in North America rose 63% in constant currency and rose 12% organically. Finance & legal revenue rose 118% in North America in constant currency and by 1% organically.

North American information technology revenue rose 122% on a constant currency basis but fell 3% organically.

Adecco reported its North American outplacement business weakened in the third quarter but remained profitable.

Third-quarter gross margin was roughly unchanged at 17.8% compared to 17.7% in the year-ago quarter.

Net income rose to euro129.0 million (US$175.6 million) in the third quarter from euro90.0 million in the same period last year.

Adecco SA
For the third quarter ended Sept. 30, 2010, compared with the same period in 2009.
Revenue: euro5.06 billion (US$6.88 billion), +36%
Net income: euro129.0 million (US$175.6 million), +42%

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