Japanese staffing firm, the Pasona Group Inc., on Jan. 24 reported a 5.6% year-over-year increase in revenue for the first half of its fiscal year ending May 31, 2008.

The company reported revenue of 119.52 billion yen (US$1.09 billion) in the first six months of the current fiscal year, up from 113.20 billion yen in the same period in the prior year. Net income, however, fell 48.7% to $1.06 billion yen (US$9.7 million) from 2.07 billion yen. The company said strategic investments caused the decline.

Pasona forecast full-year revenue of 259.13 billion yen (US$2.36 billion), a 12.1% increase over the prior year. It also forecast full-year net income of 4.43 billion yen (US$40.3 million), a 5.5% increase over the prior year.

"In the temporary staffing market in particular, indications of a lull in demand are beginning to emerge," according to Pasona's half-year report. "This is attributed to companies increasing their ranks of full-time personnel. Pasona Group considers this a short-term phenomenon, with economic uncertainty contributing to potential demand growth and the increased use of external human resources."

Pasona also announced Jan. 24 that its payroll services joint venture with Automatic Data Processing Inc. (NYSE: ADP) was sold to Baring Private Equity Asia. Pasona said it would take a 1.00 billion yen (US$9.4 million) gain on the sale.

Pasona Group Inc.
For the first half of the fiscal year ending May 31, 2008, compared with the previous year.
Revenue: 119.52 billion yen (US$1.09 billion), +5.6%
Net income: $1.06 billion yen (US$9.7 million), -48.7%