Adecco Focuses On Profitability As Income Rises 12%

Staffing company Adecco SA(ADEN.VX) Tuesday reported a 12% increase in net profit on a 2% increase in sales and said it would continue to focus on profitability in the coming months.

MAIN POINTS:

-1Q net profit EUR112 million versus EUR100 million in 2011

-1Q revenue EUR 5.04 billion versus EUR4.92 billion in 2011

- The company said revenue developments in April were a "touch weaker" than in the first quarter

-Outlook: "Building on our strategic priorities we continue to focus our efforts on constantly improving our HR solutions, delivery models and the cost base, and we remain convinced that we will achieve an EBITA margin of over 5.5% midterm," the company said.

- Six analysts polled by Dow Jones Newswires on average forecast a net profit of EUR95.3 million.

- Six analysts polled by Dow Jones Newswires on average forecast revenue of EUR5 billion.

- Rival staffing companies Randstad holding NV (RAND.AE) last month reported a 2% rise in first quarter earnings before interest, tax and amortization for its first quarter, from a 12% increase in revenues, driven by growth in its U.S. business. But its net profit for the period fell 29% because of integration costs.

American rival ManpowerGroup (MAN) reported a 13% rise in profit, helped by a rise in temporary hiring by companies reluctant to take on permanent staff.

- Adecco shares closed Monday at CHF39.25, valuing the company at CHF7.43 billion. The stock has lost 0.25% in value since the start of the year.

-By John Revill, Dow Jones Newswires; +41 43 443 8042 ; john.revill@dowjones.com

Randstad NV (EU:RAND)
Historical Stock Chart
From Jun 2024 to Jul 2024