ZURICH, Nov 7, 2018 (BSS/AFP) – Slowing demand for casual workers in
Europe crimped revenue growth at the world’s biggest temporary staffing
agency Adecco, the Swiss firm said Tuesday.
But net profits more than doubled in the three months through September,
compared with a year earlier, to 270 million euros ($310 million), bolstered
by the sale of its remaining stake in management services provider Beeline.
The company, which saw revenues climb 2 percent on a year earlier to 5.9
billion euros, said outperformance in its largest market France had partly
helped cushion the effects of softer demand elsewhere in Europe in the
quarter.
“As we communicated during our September investor seminar, trading in (the
third quarter) was challenging, with growth slowing in a number of European
markets. Against this backdrop, overall the Group delivered a solid
performance,” said the firm’s chief executive Alain Dehaze.
The performance of temporary employment agencies can show trends in demand
in other sectors as they seek additional staff to meet orders.
Revenues in France grew 5 percent to 1.5 billion, slowing from 8 percent
in the previous quarter, with the firm saying manufacturing and automotive
demand helped drive its performance in the quarter.
Combined revenues for the German and Austrian markets fell 6 percent in
the quarter, with a constriction in the automotive sector, regulation changes
and consolidation in its operations, the firm said.
Net profits were supported by the one off sale of Adecco’s remaining 43
percent ownership interest in Beeline, which completed in August and netted
113 million euros.