UPDATE: Adecco 1Q Net Profit Up On US, France Recovery
May 06 2010 - 2:29AM
Dow Jones News
Adecco SA (ADEN.VX) Thursday said it more than doubled
first-quarter net profit on the back of improved job markets in the
U.S. and France as well as cost cutting, expecting staffing markets
to continue their recovery during the second quarter.
The world's largest staffing company in terms of sales ahead of
Netherlands-based Randstand Holding NV (RAND.AE) and Manpower Inc
(MAN) of the U.S. said first-quarter net profit jumped to EUR57
million from EUR23 million in the year-earlier period, beating
analyst forecasts of EUR50 million.
Revenues, which fell constantly during the downturn, also
improved 7% to EUR3.96 billion from EUR3.70 billion a year earlier,
partly helped by acquisitions.
While Japan, Germany, the U.K. and Ireland and Switzerland still
suffered from revenue declines, France and the U.S., the company's
two key markets, showed clear signs of improvement.
"The figures show that the job markets are improving, especially
in the U.S., where Adecco showed a 2% organic increase," said Marco
Strittmatter, analysts at Zuercher Kantonalbank.
"Although some markets are still in the red, the improvement
from last year is substantial," Strittmatter said, noting that
Adecco's cost discipline also helped the company improve its
operating margin by 30 basis points to 2.8%.
Adecco, like most of its competitors, faced severe headwinds
during the crisis as companies worldwide cut jobs and introduced
short-time work, reducing the need for temporary employment.
Many companies such as Adecco lost more than 30% of their annual
revenue and analysts expect it may take at least two to three years
before employment firms can reach their pre-crisis size as firms
will continue to curb costs.
Chief Executive Officer Patrick de Maeseneire said trading
conditions in the market for placing blue-collar workers had
improved in the first quarter. He cautioned, however, that pricing
pressure remained acute, forcing Adecco to continue to slash costs
by reducing its own staff and cutting its branch network.
"Looking into the second quarter, we continue to see good
revenue developments in the majority of our markets," de Maeseneire
said, adding that "we will continue our strong cost control, which
together with our disciplined pricing, position us very well to
take full advantage of the improving economic conditions."
Company website: www.adecco.com
-By Goran Mijuk, Dow Jones Newswires, +41 43 443 80 47;
goran.mijuk@dowjones.com
Randstad NV (EU:RAND)
Historical Stock Chart
From Jun 2024 to Jul 2024
Randstad NV (EU:RAND)
Historical Stock Chart
From Jul 2023 to Jul 2024