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Adecco revenue slips, but Europe improves

November 06 2013

Adecco Group, the world’s largest staffing firm, reported third-quarter revenue fell 5 percent to €5.03 billion (US$6.80 billion), but was flat in constant currency as several of Adecco’s European markets returned to growth. North America revenue fell 3 percent year over year in the third quarter, but was up 3 percent on a constant currency basis.

“With most European economies coming out of recession, we expect demand for flexible labor to increase,” CEO Patrick de Maeseneire said in a press release. “In Q3 2013 we returned to growth in many countries in Europe and the pick-up in Italy, Germany and Spain is especially encouraging. In France the rate of revenue decline reduced further, and North America continued to perform well.”

Third-quarter gross margin improved to 18.7 percent from 17.9 percent in the year-ago quarter.

Net income jumped 61 percent to €191.0 million (US$258.2 million) in the third quarter. Adecco posted €3 million in restructuring costs in third quarter compared to €22 million in restructuring costs in the third quarter of last year.

In France, Adecco’s largest single market, revenue fell 5 percent to €1.28 billion (US$1.73 billion). However, that compared to a year-over-year decline of 12 percent in the second quarter and a year-over-year decline of 16 percent in the third-quarter of last year.

Adecco also reported third-quarter revenue rose 4 percent in Germany and Austria; rose 8 percent in Italy; and rose 3 percent in Belgium, the Netherlands and Luxembourg.

In North America, Adecco’s second-largest single market, revenue fell 3 percent to €950 million (US$1.28 billion). However, revenue was up 3 percent in constant currency.

North American industrial staffing revenue rose 7 percent year-over-year in constant currency in the third quarter, but office staffing revenue fell 5 percent in constant currency. North American permanent placement revenue rose by 20 percent in constant currency. And North American professional staffing revenue rose by 3 percent in constant currency.

Information technology staffing revenue in North America rose by 5 percent in constant currency during the third quarter, and IT revenue in the U.S. rose by 8 percent in constant currency.

In other North American segments:

  • Engineering & technical revenue rose 2 percent in constant currency.
  • Finance & legal revenue rose 4 percent in constant currency
  • Medical & science revenue fell by 2 percent in constant currency

Third-quarter global solutions revenue rose by 10 percent year over year in constant currency. Solutions covers managed service provider, recruitment process outsourcing, vendor management system and career transition & talent development revenue.

Adecco reported third-quarter permanent placement revenue was flat in constant currency at €79.0 million (US$106.8 million).

For more coverage of Adecco, please see our European coverage by clicking here.

Adecco Group
For the third quarter ended Sept. 30, 2013, compared with the same period last year.
Revenue: €5.03 billion (US$6.80 billion), -5 percent
Net income: €191.0 million (US$258.2 million), +61 percent


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