The Adecco Group (ADEN:VTX), reported revenue of €5.92 billion for the first quarter ended 30 June 2019. Revenue declined by 4% organically and by 3% trading days adjusted, reflecting market conditions, in particular slower growth in Europe.

Alain Dehaze, Group CEO commented, “Organic revenue growth slowed in the quarter, driven mainly by Europe. This partly reflected robust growth in the same period of the prior year, and also continued weakness in automotive and manufacturing sectors in many European economies. We see the year-on-year comparison base becoming less challenging as the second half progresses, given the slowdown in the European economy in the late summer of 2018.”

Currency movements had a positive impact on revenues of approximately 1%, M&A had a positive impact of around 0.5%, while the number of working days had a negative impact of around 0.5%.

By service line, temporary staffing revenue declined by 5%, to €5.08 billion; permanent placement revenue increased by 1%, to €153 million. Revenue from career transition stood at €88 million, down 3%; and revenue in outsourcing and other activities was up 2%, to €595 million. By business line, General Staffing revenues were down 5%, Professional Staffing revenues declined by 1%; and Solutions revenues were up 1%. All compared to the prior year and on an organic basis.

Revenue growth noted below is on an organic basis.

In France, revenues decreased by 4% in General Staffing, which accounts for over 90% of revenues, partly offset by strong growth in Professional Staffing, up 13%. By industry, declines were most pronounced in manufacturing, logistics and retail. Permanent placement revenues were up 3%.

Within N. America, UK & I, General Staffing, North America General Staffing, which accounts for approximately 75% of revenue, was down 2%. Growth was impacted by a moderation in US market growth, as well a more challenging prior year comparison base. UK & Ireland General Staffing represents approximately 25% of revenues and was down 1%, or flat trading days adjusted, in a market impacted by Brexit-related uncertainty. Permanent placement revenue growth re-accelerated to 11% in North America General Staffing, and was down 1% in UK & Ireland General Staffing.

North America Professional Staffing represents approximately 65% of revenue in North America, UK & Ireland Professional Staffing, and declined 7%. Continued strong growth in Medical & Science was offset by declines in IT and Finance & Legal, while Engineering & Technical was flat. Growth in Legal continued to be impacted by the completion of a number of large client projects in Q1 2019; the impact of which will persist for the remainder of the year.

UK & Ireland Professional Staffing was flat, or up 2% trading days adjusted, with market conditions remaining muted. Permanent placement revenues were up 8% in North America Professional Staffing and down 12% in UK & Ireland Professional Staffing.

In Germany & Austria, revenue declined 18%, or 17% trading days adjusted, driven primarily by the market slowdown, particularly in the automotive sector, and the ongoing impact of regulatory changes. In Switzerland, revenue declined 9%, or 7% trading days adjusted, against a very strong prior year comparison base and in a slowing market.

In the Nordics, revenue declined 4%, or 2% trading days adjusted, with growth in Norway offset by a decline in Sweden. Revenue in Benelux was down 10%, or down 11% trading days adjusted. Belgium experienced a mid-single-digit revenue decline, reflecting softer market conditions, while the Netherlands declined double-digits due to a repositioning of the business away from lower value activities and the market slowdown.

In Italy, revenue declined due mainly to weakness in manufacturing, automotive and metal sectors.

Japan reported good growth in professional staffing and permanent placement.

Within Rest of World, revenue increased 4% in Australia & New Zealand, 1% in Latin America, 6% in Asia, 4% in India and declined by 3% in Eastern Europe & MENA, all trading days adjusted.

In Career Transition and Talent Development (including Lee Hecht Harrison and General Assembly), revenues declined in the counter-cyclical career transition activities, partly offset by growth in talent development.

The group also reported revenue for the six months ended 30 June 2019. Organic revenue declined by 3%, or by 2% trading days adjusted, to €11.56 billion.

Adecco also reported that revenue in June was down 3% organically and trading days adjusted. Volumes in July indicate a continuation of the Q2 trend.

The group said it remains on track to deliver the targeted incremental ‘GrowTogether’ (transformation programme) productivity savings of €70 million in 2019.

As of last trade Adecco Group traded at CHF 52.84 (€48.32), up 1.62% on the day and 12.95% below its 52-week high of CHF 60.70 (€55.51), set on 8 August 2018. Based on its current share price the company has a market value of CHF 8.44 billion (€7.71 billion).