Adecco reported revenue growth slowed compared to the first half of the year, mainly because of weaker growth in France and Germany. However, activity picked up in North America and remained robust in its emerging markets.

Switzerland-based Adecco, the world’s largest staffing firm, reported revenue rose 3 percent in the third quarter to €5.19 billion (US$6.58 billion). In constant currency, the increase was 4 percent.

Net income rose 4 percent to €198 million (US$251 million).

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“Revenue growth slowed compared to the first half, mainly driven by weaker growth in France and Germany,” said CEO Patrick De Maeseneire. “In North America we saw a pick-up in activity as expected, and emerging market growth remained robust. The group exited the quarter with revenue growth of 2 percent in September, organically and adjusted for trading days.”

Revenue

Revenue by segment

In the following section on performance by geographies only, all changes are based on organic growth, which excludes the impact of currency, acquisitions and divestitures.

France

• French revenue fell 3 percent.
• Industrial staffing, which accounts for 85 percent of French revenue, fell by 1 percent.

North America

• Revenue rose 5 percent (on an organic basis) in the third quarter to €986 million (US$1.25 billion).
• Industrial revenue rose by 12 percent. Office revenue rose 1 percent.
• Professional staffing revenue rose 3 percent with growth in IT of 2 percent.
• Permanent placement revenue rose 10 percent.

UK & Ireland

• Revenues rose 1 percent to €526 million.
• Approximately two-thirds of revenues come from Professional Staffing, which grew by 2 percent. This included revenue growth of 3 percent in IT.
• Permanent placement revenues in the UK & Ireland increased by 9 percent.

Germany & Austria

• Revenues rose 1 percent to €438 million.
• In industrial, which accounts for approximately 70 percent of revenues, revenue growth was 2 percent compared to 11 percent in the second quarter, reflecting weaker demand from clients in the automotive and equipment manufacturing sectors.
• Revenues declined 6 percent in office and 1 percent in professional staffing.

Japan

• Revenue rose 4 percent to €266 million.
• Revenue grew by 2 percent in office, which accounts for approximately 75 percent of revenue in Japan.

Italy

• Revenue rose 15 percent, helped by good demand from manufacturing clients.

Nordics

• Revenue rose 6 percent.
• In Norway and Sweden, the environment remains challenging, while growth continued to be strong in Denmark.

Iberia

• Revenue rose 21 percent, driven by further strong demand from export-oriented clients.

Australia & New Zealand

• Revenues fell 8 percent, still negatively impacted by client losses in the second half of 2013.

Emerging markets

• Revenue rose 9 percent, with continued strong growth in Eastern Europe & MENA, up 17 percent. 

Lee Hecht Harrison (Adecco’s Career Transition and Talent Development business)

• Revenue rose 6 percent.

 Revenue by business line

Gross margin

Net income

 Share price and market cap

Adecco shares fell 1.40 percent to 63.60 Swiss francs.