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Adecco revenue up 7%, North America rises

May 06 2010

Adecco SA, the world's largest staffing firm, reported first-quarter revenue rose 7% from the year-ago quarter to euro3.96 billion (US$5.33 billion) with growth returning in North America and France -- its two largest markets. However, the company said revenue fell 1% on an organic basis excluding the impact of currencies, acquisitions and divestitures.

Adecco said North American revenue rose to euro737.0 million (US$991.5 million), representing organic growth of 2%. Organic growth excludes its recent acquisitions of MPS Group Inc. and the U.K.-based Spring Group, which had operations in the U.S.

Adecco said North American revenue rose 7% organically when its outplacement business is also excluded.

North American industrial staffing revenue posted growth, and the company's North American office/clerical business registered organic growth of 7%.

Its North American engineering and technical business rose 19% organically and was up 54% in constant currency reflecting acquisitions.

Adecco's North American information technology staffing revenue rose 55% including its acquisition of MPS, which was included in two months of the first quarter. North American IT revenue fell 7% organically. And North American finance and legal staffing revenue rose 52% in constant currency, but fell 9% on an organic basis.

Revenue in the company's largest market, France, rose 6% organically to euro1.17 billion (US$1.57 billion).

Adecco's gross margin narrowed to 18.0% in the first quarter from 18.5% in the same period last year.

First-quarter net income rose 148% to euro57.0 million (US$76.7 million).

In a conference call with analysts, CFO Dominik de Daniel said the integration of MPS and the integration of Spring remain on track.

The MPS deal closed on Jan. 19. MPS had ranked No. 13 on Staffing Industry Analysts' 2009 list of largest U.S. staffing firms. MPS provided professional staffing and offered the Beeline vendor management system.

Adecco SA
For the first quarter ended March 31, 2010, compared with the same period in 2009.
Revenue: euro3.96 billion (US$5.33 billion), +7%
Net income: euro57.0 million (US$76.7 million), +148%

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