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Adecco revenue slips 1%

August 12 2008

Second-quarter revenue fell 1% at Adecco SA, the world's largest staffing firm, to euro5.20 billion (US$8.22 billion), compared with euro5.28 billion in the second quarter of last year. And the company said it expects more challenges in the second half of 2008.

Adecco's second-quarter U.S. and Canadian revenue fell 19% to euro665.0 million (US$1.05 billion). However, revenue fell only 6% on an organic basis, excluding the influence of currency exchange, acquisitions and divestitures.

The company said the decline in the U.S. and Canada was most significant in its office and industrial business, where revenue fell 13% on a constant currency basis. Information technology staffing revenue decreased 3% in the U.S. and Canada. Engineering and technical revenue was flat.

In France, Adecco's largest market, second-quarter revenue fell 1% to euro1.77 billion (US$2.80 billion).

Adecco's overall, second-quarter gross margin slipped to 19.3% from 20.3%.

Second-quarter net income fell 5% to euro212.0 million (US$334.9 million) from euro222.0 million in the second quarter of 2007. A French tax benefit had a positive impact of euro0.20 per share in the second quarter, but had a larger impact of euro0.36 a share in the second quarter of last year.

"Looking ahead, we anticipate a more challenging second half of 2008 in terms of revenue development," said CEO Dieter Scheiff. "More European markets have seen demand contracting during the second quarter of 2008. Japan showed similar developments to Europe, while demand in the U.S. remained weak."

Adecco SA
For the second quarter ended June 30, 2008, compared with the same period in 2007.
Revenue: euro5.20 billion (US$8.22 billion), -1%
Net income: euro212.0 million (US$334.9 million), -5%

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