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Adecco’s North America Business Accelerates

August 09 2012

Adecco, the world’s largest staffing firm, reported its North American business is accelerating even as Europe weakens. Second-quarter North America revenue rose 2 percent year-over-year in constant currency to €967.0 million (US$1.22 billion).

“Demand was strong in automotive and logistics and transportation,” CEO Patrick De Maeseneire said describing the North America market during a conference call with analysts. “Revenues in general staffing increased 2 percent in constant currency, and we are back to growth in professional staffing, where revenues were up 2 percent.”

One driver of growth in North America was U.S. information technology staffing, where revenue rose by 2 percent in constant currency, according to the company.

Adecco’s North America second-quarter year-over-year revenue growth by segment, as measured in constant currency, included:

  • Finance & legal, up 9 percent
  • Medical & science, up 21 percent
  • Engineering & technical, down 2 percent
  • Permanent placement, up 15 percent

Worldwide second-quarter revenue fell 3 percent year-over-year in constant currency at the Switzerland-based company to €5.20 billion (US$6.53 billion).

In France, Adecco’s largest single market, revenue fell 14 percent year over year to €1.38 billion (US$1.73 billion) in the second quarter.

Second-quarter revenue rose by 7 percent in constant currency in the U.K. and Ireland to €470 million (US$591.1 million). Revenue there was driven by the Olympics, where Adecco is the official supplier of temporary employees, the company reported.

There was good news as far as gross margin. Adecco’s second-quarter gross margin improved to 17.7 percent from 16.9 percent in the second quarter of last year.

Adecco’s second-quarter net income fell 20 percent to €113.0 million (US$142.1 million).

Adecco SA

For the second quarter ended June 30, 2012, compared with the same period last year.
Revenue: €5.20 billion (US$6.53 billion), +1 percent (-3 percent in constant currency)
Net income: €113.0 million (US$142.1 million), -20 percent

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