• Switzerland's news in English

Adecco profits plunge over 'challenging' France

AFP · 7 May 2013, 12:09

Published: 07 May 2013 12:09 GMT+02:00

Facebook Twitter Google+ reddit

The result, released on Tuesday, dipped below the expectations of analysts polled by Swiss financial news agency AWP, who had foreseen a net profit for the three-month period of 73 million euros.
During the first three months, the Zurich-based company also saw its earnings before taxes 
and restructuring costs fall 29 percent from the year-ago period to 138 million euros, while its sales slipped 10 percent to 4.6 billion euros.
Adjusted for trading days, sales were meanwhile down just five percent, 
Adecco said, pointing out that the first quarter had counted more holidays this year than last.
The company, which is in the midst of a far-reaching cost-cutting 
programme, meanwhile, saw its restructuring costs amount to 11 million euros during the quarter.
A full six 
million euros of that was attributed to its restructuring of activities in France, it main market, which continued during the quarter to weigh on its overall results, with sales in the country down a full 17 percent.

Company chief executive Patrick De Maeseneire meanwhile maintained the Adecco's performance was respectable and hinted that the crisis could be winding down.

"Considering the economic headwinds in Europe, we achieved a solid first quarter," he said in the earnings statement, adding that "revenues are starting to bottom out in Europe with the gap to the market narrowing in France."
The company stressed though that "conditions remained challenging" in 
In the rest of Europe, however, Adecco said sales were stabilizing and even 
improving slightly, the company said.
And North America, which constitutes Adecco's second-biggest market, 
bounced back with sales rising two percent during the first three months of the year, it said.
The group reiterated that it expects the economic conditions to improve 
somewhat by the end of the year, and confirmed its target of achieving an EBITA margin of above 5.5 percent by 2015.
Following the news, Adecco's shares opened lower, but as analysts hailed 
the company's outlook, the share price climbed 1.68 percent to 51.55 francs in mid-morning trading while the main Swiss index rose 0.42 percent.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Swiss luxury watches stolen in Paris raid
Police outside the Girard-Perregaux watch store on Thursday. Photo: Bertrand Guay/AFP

The 10 Girard-Perregaux watches are worth half a million euros in total.

Brother-in-law arrested over murder of Swiss teacher
The victim worked in a school in Stabio, near the town of Mendrisio. Photo: Oliver Graf

The primary school teacher was found dead in Ticino earlier this week.

Inside Switzerland’s largest nuclear bunker – 40 years on
Designed to house 20,000 people, the bunker was built in and over two motorway tunnels. Photo: Unterirdisch Ueberleben

The Local takes a tour of the Sonnenberg bunker in Lucerne, opened 40 years ago at the height of the Cold War.

Ten Swiss ski resorts named most expensive in Europe
File photo: Renato Bagattini/Swiss Tourism

Skiers in Switzerland pay the highest prices for their ski passes of anywhere in Europe, according to research.

Eco group fights Bern over wind farm plans
There are currently more than 30 wind farms in Switzerland. Photo: Alpiq

Wind turbines are “gigantic and destructive” machines, says Paysage Libre Suisse.

Vegan wins battle to be accepted by Swiss army
Antoni Da Campo will now carry out his military service. Photo: Antoni Da Campo

A Swiss man who was told he would not be accepted for military service because of his strict veganism has finally succeeded in making the army change its mind.

Geneva terror suspects to receive compensation
File photo: Emran Kassim

The Swiss public prosecutor has dropped the case against them.

Ticino firefighters rescue cow from swimming pool
File photo: The Local

The cow was at risk of drowning after falling into the private pool.

Uefa Champions League
Basel 'ready for battle' in Champions League clash
Basel training in Paris. Photo: Franck Fife/AFP

Swiss champions Basel fancy their chances of springing a surprise when they face Paris Saint-Germain on Wednesday.

Burst pipe causes major flood in Lausanne
The water flooded Place de la Riponne in Lausanne. File photo: Swiss Tourism/Christof Schuerpf

Water rushed down the streets after a pipe burst in the city centre.

Sponsored Article
How to vote absentee from abroad in the US elections
Photo: Richard Juilliard/AFP
Man makes Geneva airport bomb threat ‘for a joke’
Sponsored Article
Last chance to vote absentee in the US elections
Photo: AFP
Solar Impulse team reveals plans for unmanned plane
File photo: Martin Abegglen
Swiss to vote on passport rules for 3rd gen foreigners
Sponsored Article
How to vote absentee from abroad in the US elections
Photo: AFP
Swiss wingsuit hotspot Lauterbrunnen won’t impose ban
Photo: Swiss Tourism
Six reasons Switzerland isn’t as boring as you might think
Photo: Swiss Tourism
Report: Switzerland one of world’s best places for girls
Photo: The Local
Thief returns Swiss cow bells worth thousands
File photo: Wikimedia Commons
One in three rapists isn’t locked up: statistics
Photo: activistin.ch
Tampon-tax protest turns Zurich fountains red
Photo: AFP
Geneva police to lift ban on bearded officers
Photo: Marcel Gillieron/AFP
Suicide chef’s restaurant keeps Michelin stars
Photo: Lara de Salis
11 things the Swiss get tired of hearing abroad
Photo:  Ivo Scholz/Swiss-image.ch
Survey: expats in Switzerland have money but few friends
Photo: AFP
Swiss press criticize Bern’s 'capitulation' on immigration
Photo: Jura Trois Lacs tourism
German ex-policeman is Swiss city’s new hermit
Photo: Dmitry A. Mottl
Ticino votes to favour local workers over foreigners
Photo: file
Some deodorants could cause breast cancer: Swiss study
Photo: Royal Savoy
In pictures: Inside the latest Swiss luxury hotel
Photo: AFP
Geneva airport bomb hoaxer faces 90,000-franc bill
Photo: Schaffhausen police
Mother leaves toddler son alone in car to go clubbing
Photo: Fabrice Coffrini/AFP
Swiss populist attacked by knife-wielding pensioner
Photo: File
Bern argues over passports for 3rd generation foreigners
Photo: Broad Bean Media
Muslim pupils must shake hands – ‘no ifs and buts’
jobs available