Adecco (ADEN: VX), the largest staffing firm in the world, today reported revenue for the second quarter ending 30 June 2016 of €5,696 million, up 4% organically compared with €5,582 million during the same quarter last year.

Q2 2016 revenues of €5,696 million were up 4% organically, or by 3% adjusted for trading days. Currency fluctuations had a negative impact on revenues of approximately 3% and acquisitions had a small positive impact. By business line, revenues grew organically by 4% in General Staffing and by 5% in Professional Staffing. Permanent placement revenues were €121 million, up 9% organically. Revenues from career transition totalled €95 million, up 1% organically compared to the prior year.

SG&A was €789 million and excluding one-offs was €787 million, up 4% organically compared to Q2 2015. In Q2 2016, one-offs comprised €2 million integration costs in Lee Hecht Harrison related to the acquired Penna business. In Q2 2015, one-offs comprised €5 million integration costs in Lee Hecht Harrison related to the acquired Knightsbridge business and €10 million costs for contractual obligations to the former CEO and CFO.

The company’s operating margin increased strongly in most of Europe but declined in France and the UK, as well as the US.

Alain Dehaze, CEO of the Adecco Group commented: “We maintained our price discipline, costs remained under control, and we generated strong cash flow from operating activities. We are making progress in implementing our strategy and strengthening our portfolio, positioning us to drive strong performance across our business. With our global leadership in workforce solutions, we are very well placed to support our clients with the flexible solutions they need to succeed in this volatile environment.”

A geographical breakdown of revenue for the second quarter was as follows:

In France, revenue was up 3%. Revenues increased by 3% in General Staffing, which accounts for over 90% of revenues, and grew by 10% in Professional Staffing. Revenue growth continued to be positive in construction and strong in automotive, while strikes and bad weather had a negative impact on growth in retail, manufacturing and logistics. Permanent placement revenues in France were up 23%.

In North America, revenue was down 1%. General Staffing accounts for approximately half of revenues, and declined by 3%. Revenues declined by 4% in Industrial and by 1% in Office. In Professional Staffing, revenues were up 1%, with growth of 22% in Medical & Science and 10% in Finance & Legal, and declines of 5% in IT and 7% in Engineering & Technical. Permanent placement revenues in North America were up 5%.

In the UK & Ireland, revenue was up 6% or up 3% adjusted for trading days. Approximately two-thirds of revenues come from Professional Staffing, which returned to growth with an increase of 4%. Revenues grew by 6% in IT, partially offset by a 3% decline in Finance & Legal. In General Staffing, revenues increased by 9%. Permanent placement revenues in the UK & Ireland were up 5%. In an interview this morning, Alain Dehaze told Reuters. "We don't see any material impact of Brexit, either in the UK or in the neighbouring countries and the UK's trading partners. We were seeing (before the vote) a delay in decisions on hiring of highly skilled people and some investment until customers have more clarity on the future of the UK. Especially with our activities we are concentrated on local customers and local activities. At this stage we don't see any immediate impact."

In Germany, Austria, Switzerland revenue was up 3% or down 2% adjusted for trading days. In Germany & Austria, revenues were down 1% adjusted for trading days, as a decline in automotive was partially offset by growth in manufacturing. In Switzerland, revenues declined by 4% adjusted for trading days, negatively impacted by reductions in the export-related and medical sectors.

In Benelux and Nordics, revenue increased by 6% or 2% adjusted for trading days. In the Nordics, revenues were up 4% adjusted for trading days. Norway returned to growth after six quarters of decline and growth also accelerated in Denmark and in Finland. Revenues in Benelux were up 1% adjusted for trading days.

In Italy, revenue was up 9% or up 7% adjusted for trading days.

In Japan, revenues increased by 4% to €312 million, with growth in professional staffing and permanent placement.

In Iberia, revenue was up 11% or up 6% adjusted for trading days, against a strong comparison base.

In Rest of World, revenues grew by 12%. Revenue growth was 12% in Australia & New Zealand, 7% in Latin America, 16% in Eastern Europe & MENA, 7% in Asia and 24% in India.

In Lee Hecht Harrison, Adecco’s Career Transition and Talent Development business, revenue increased by 6% in constant currency following the acquisition of Penna in May 2016. Organically revenues were flat, with growth in the USA and the UK offset by declines in France and Canada.

Looking forward, Adecco states: “the global economic outlook remains uncertain, and the Adecco Group will adapt to any changes in market conditions, maintaining price discipline and tight cost control. In Q3 2016, SG&A excluding one-offs is expected to be similar to Q2 2016. The group’s financial targets, to be achieved on average across an entire economic cycle, including periods of economic expansion and recession, are: growing revenues organically at least in line with our main peers, at group level and in each major market; improving our EBITA margin to 4.5–5.0% on average through-the-cycle; and delivering an operating cash flow conversion of more than 90% on average through-the-cycle.”

According to Reuters, Dehaze said Adecco was "absolutely not" under pressure to act following yesterday’s announcement that its rival Randstad, the world's second-largest staffing company, plans to acquire Monster Worldwide.

In trading today, Adecco Group traded at €55.65, up 1.74% on the day and 23.64% above the 52 week low of €45.01 set on 6 July 2016. Based on its current share price, the company has a market value of €9.37 billion.