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Adecco profit jumps as Euro market rebounds

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Adecco profit jumps as Euro market rebounds
13:14 CET+01:00
Swiss-based Adecco, the world's biggest temporary staffing group, on Wednesday posted a 48-percent jump in its 2013 net profit as the long-depressed European market began bouncing back.

In 2013, the company's net profit ticked in at €557 million ($772 million), as its operating income swelled 21 percent to €779 million.

Its revenues slipped five percent during the year to 19.5 billion euros, but, excluding the negative impact of currency fluctuations in the final three months of the year they did swell by four percent to 4.9 billion.

That marked the company's first revenue growth in almost two years.

The company thus beat the expectations of analysts polled by the AWP financial newswire, who had anticipated 4.8 billion in revenues for the quarter.

"Last year began with much uncertainty, especially in Europe, but nonetheless we were cautiously optimistic. The 2013 results confirmed our view," company chief executive Patrick De Maeseneire said in the earnings statement.

He pointed out that situation had gradually improved during the course of the year.

While all regions of Europe saw slumping revenues in the first quarter of 2013, Adecco's revenues on the continent swelled five percent in the fourth quarter, he said.
Revenues for instance ballooned 12 percent in the Benelux countries (Belgium, Netherlands and Luxembourg), and 10 percent in Germany, Austria and on the Iberian peninsula.
De Maeseneire also stressed that the temp group had managed to improve profitability in its long-faltering, largest market France, thanks to cost-cutting measures.
Adecco's board has proposed dishing out a dividend of two francs ($2.30, 1.60 euros) per share for 2013, up 11 percent from the previous year.
Going forward, the company said it expected the demand for flexible labour to continue growing this year.
Following the news, the company saw its share price soar 4.99 percent to 78.95 francs a piece in mid-morning trading, as the Swiss stock exchange's main indicator slumped 0.51 percent.

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