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Adecco’s North American Revenue Up 5%

November 08 2011

Adecco SA, the world’s largest staffing company, reported today third-quarter North American revenue rose 5 percent on a constant-currency basis to €903.0 million (US$1.23 billion).

Professional staffing in North America remained flat in the third quarter. The company said its information technology segment continued to be a weak spot. Growth also slowed in the company’s engineering and technical business — its year-over-year increase in constant currency was 3 percent in the third quarter compared to a year-over-year increase of 49 percent in the third quarter of 2010.

North American general staffing revenue rose by 10 percent on a constant-currency basis.

Permanent placement revenue in North America rose by 19 percent on a constant-currency basis.

Total third-quarter revenue for Switzerland-based Adecco rose 4.3 percent (or 7 percent in constant currency) to €5.27 billion (US$7.17 billion). Gross margin narrowed to 17.2 percent from 17.8 percent in the year-ago quarter.

Third-quarter results include September revenue from Drake Beam Morin Inc., when Adecco acquired the company. Drake Beam Morin ranked as the third-largest U.S. outplacement firm after Adecco’s Lee Hecht Harrison division on Staffing Industry Analysts’ 2011 list of largest U.S. outplacement firms. Lee Hecht Harrison posted third-quarter global revenue of €53.0 million (US$72.1 million), flat year-over-year in constant currency.

Adecco reported its “solutions” revenue — which represents 1 percent of total revenue — had fallen 4 percent on an organic basis, excluding the impact of currency and acquisitions. Solutions includes outplacement as well as the company’s managed service provider, recruitment process outsourcing and vendor management system offerings. Excluding outplacement, revenue growth in MSP, RPO and VMS offerings was up “strongly double-digit in constant currency,” the company reported.

Third-quarter net income rose 13 percent to €145.0 million (US$197.2 million).

Adecco SA
For the third quarter ended Sept. 30, 2011, compared with the same period in 2010.
Revenue: €5.27 billion (US$7.17 billion), +4.3 percent
Net income: €145.0 million (US$197.2 million), +13.3 percent

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