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Adecco Group reported first-quarter revenue fell 10 percent year over year (5 percent organically, adjusted for trading days) to €4.56 billion (US$5.84 billion). Gross margin was 18.0 percent, a decrease of 20 basis points year over year and (-10 basis points organically).
Organic growth excludes changes in currency valuation and of acquisitions and divestitures.
First-quarter net income fell 40 percent to €67.0 million (US$85.9 million).
In North America, revenue increased 2 percent organically to €888 million (US$1.14 billion) in the first quarter.
North America segment results include:
- General staffing: Revenue up 2 percent in constant currency
- Professional staffing: Revenue up 2 percent organically
- IT professional staffing: Revenue up 5 percent organically
- Medical and science: Business increased 14 percent in constant currency
- Engineering and technical: Results flat
- Finance and legal: Down 4 percent in constant currency
- Permanent placement: Revenue up 14 percent in constant currency
“Considering the economic headwinds in Europe, we achieved a solid first quarter," said CEO Patrick De Maeseneire. “Revenues are starting to bottom out in Europe with the gap to the market narrowing in France. North America continues to hold up well driven by both general and professional staffing. Price discipline and the business mix resulted in a resilient gross margin, despite the negative impact from fewer trading days in Q1 2013.”
Adecco’s outplacement division, Lee Hecht Harrison, and its emerging markets segment joined North America with positive results. Emerging markets grew 4 percent in constant currency (up 8 percent in constant currency and adjusted for trading days) to €449 million (US$575.5 million), mainly driven by Latin America. Revenues at Lee Hecht Harrison were €79 million (US$101.2 million), a 3 percent increase in constant currency compared to the first quarter of 2012.
In France, revenue fell 17 percent on a year-over-year organic basis (down 15 percent adjusted for trading days) to €1.1 billion (US$1.3 billion) compared to first quarter 2012. And in Japan, the completion of several outsourcing projects during 2012 contributed to revenue falling 21 percent in constant currency (down 15 percent adjusted for trading days) to €292 million (US$374.2 million).
For the first quarter ended March 31, 2013, compared with the same period last year.
Revenue: €4.56 billion (US$5.84 billion), -10 percent
Net income: €67.0 million (US$85.9 million), -40 percent