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Adecco North American revenue up sequentially

March 03 2010

Adecco SA, the world's largest staffing firm, reported today that North American revenue fell 23% on a year-over-year basis (down 14% in constant currency), but rose 0.7% from the third quarter to end a string of sequential declines.

Adecco posted North American revenue of euro562.0 million (US$805.5 million). That compares with euro729.0 million in the fourth quarter of 2008 and euro558.0 million in the third quarter of 2009.

The rate of decline in North American industrial staffing revenue fell 14% on a year-over-year basis in constant currency during the fourth quarter from a 30% decline in the third quarter, the company reported.

North American office staffing revenue fell 11% in the fourth quarter on a year-over-year basis in constant currency compared with a 22% decline in the third.

"In the fourth quarter, trading conditions continued to improve in our major markets France and North America, but also in most other geographies we saw positive momentum," CEO Patrick De Maeseneire said in a statement. "This positive trend continued into the first two months of the year, with France and North America returning to year-on-year growth in recent weeks."

Total fourth-quarter revenue at Adecco fell 18% (16% in constant currency) to euro3.79 billion (US$5.42 billion) from euro4.63 billion in the year-ago quarter.

Gross margin narrowed to 17.6% from 18.2%.

Adecco posted fourth-quarter net income of euro42.0 million (US$60.2 million) compared with a net loss of euro21.0 million in the fourth quarter of 2008.

Full-year 2009 revenue fell 26% to euro14.80 billion (US$21.21 billion) from euro19.97 billion in the same period in the previous year.

2009 gross margin fell to 17.9% from 18.4% in 2008.

Adecco posted net income of euro8.0 million (US$11.5 million) in 2009 compared with net income of euro499.0 million in 2008.

Adecco also reported that it has begun the integration of MPS Group. The MPS deal had closed on Jan. 19. Adecco announced the deal late last year. MPS had ranked No. 13 on Staffing Industry Analysts' 2009 list of largest U.S. staffing firms. MPS provided professional staffing and offered the Beeline vendor management system.

In addition, Adecco added Mexico to its North America segment from its emerging markets segment for the fourth quarter and full year

Adecco SA
For the fourth quarter ended Dec. 31, 2009, compared with the same period in the previous year.
Revenue: euro3.79 billion (US$5.42 billion), -18%
Net income: euro42.0 million (US$60.2 million) vs. net loss of euro21.0 million

For the full year ended Dec. 31, 2009, compared with the previous year.
Revenue: euro14.80 billion (US$21.21 billion), -26%
Net income: euro8.0 million (US$11.5 million), -98%


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