By Goran Mijuk
Of DOW JONES NEWSWIRES
ZURICH (Dow Jones)
The Zurich-based employment firm said net profit for the three-month period to the end of September fell to EUR90 million from EUR168 million a year ago. That beat analyst calls for EUR50 million, as the company benefitted from cost-cutting and an unexpected improvement in market conditions in the U.S. and France.
While sales still fell 27% to $3.72 billion from EUR5.10 billion during the third quarter, the decline was less steep than in previous quarters, when revenues dropped more than 30% as weak job markets in the U.S. and France hit Adecco's top line.
"Market conditions have improved during the third quarter, especially in general staffing, and we have seen a gradual improvement of the revenue trend," said Chief Executive Patrick De Maeseneire.
The company, which recently bough U.S.-based peer MPS Group Inc for $1.3 billion, said it would continue to reduce costs as pricing still remained under pressure as many companies are still trying to avoid hiring staff.
Adecco's competitors, such as Manpower Inc (MAN) and Randstad Holding NV (RAND.AE), have already warned that margins would stay depressed.
Despite the market improvement in France and the U.S., the company's key market, employment trends in Germany remained weak, with sales falling more than 30%. Likewise, hiring activity in the U.K., which is still mired in recession, was weak.
Company Web Site: http://www.adecco.com
-By Goran Mijuk, Dow Jones Newswires, +41 43 443 80 47; goran.mijuk@dowjones.com