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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.
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