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Adecco revenue slips, sees difficult environment

November 04 2008

Adecco SA, the world's largest staffing firm, reported today third-quarter revenue fell 6% to euro5.10 billion (US$7.37 billion). And the company sees more challenging times ahead.

"We anticipate a progressively more difficult environment in terms of revenue development," CEO Dieter Scheiff said. "September saw the negative revenue trend accelerate in most countries, with the exception of emerging markets, which continued to grow strongly."

On a constant currency basis, Adecco said third-quarter revenue declined by 3%.

In the U.S. and Canada, revenue fell 19% to euro651.0 million (US$940.6 million), or 9% on a constant currency basis. Adecco said revenue fell by 17% in constant currency in its office/clerical business, and industrial staffing revenue fell by 12% in constant currency.

Third-quarter revenue in the company's U.S. and Canadian information technology business posted a 5% decline in constant currency. Revenue in its engineering and technical business slipped 3% in constant currency.

In France, Adecco's largest market, third-quarter revenue fell 2%. Revenue dropped by 29% in the U.K. and Ireland (down 16% on a constant currency basis). But, in Germany, revenue rose 12%.

Companywide, Adecco's gross margin slipped to 18.0% from 18.5%.

Third-quarter net income fell 27% to euro168.0 million (US$242.7 million) compared with euro230.0 million in the same period in the previous year. The third quarter of last year benefited from a French tax change.

Adecco also announced today it acquired Groupe Datavance, a French IT staffing firm. It had revenue of euro66 million in its 2007/2008 fiscal year.

Adecco SA
For the third quarter ended Sept. 30, 2008, compared with the same period in 2007.
Revenue: euro5.10 billion (US$7.37 billion), -6%
Net income: euro168.0 million (US$242.7 million), -27%

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