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Adecco earnings fall short of expectations

Swiss-based Adecco, the world's biggest temporary staffing agency, on Thursday reported a rise in third-quarter profits, which missed expectations as business took a hit in its main market, France, and slowed in Germany.

Adecco earnings fall short of expectations
Photo: AFP

The group, headquartered in Glattbrugg, near Zurich, said its net profit had risen four percent in the July-September period to 198 million euros ($248 million), on sales up three percent at 5.1 billion euros.
   
That was slightly lower than the expectations of analysts polled by financial news agency AWP, who had anticipated a net profit of 200 million euros on sales of 5.2 billion euros.
   
Following the news, Adecco saw its share price fall 2.02 percent to 63.20 francs in mid-morning trading, as the Swiss stock exchange's main SMI index eased just 0.22 percent.
   
"Revenue growth slowed compared to the first half, mainly driven by weaker growth in France and Germany," company chief Patrick de Maeseneire said.
   
After two quarters in the black, Adecco's main market, France, once again was hit by sliding sales, with revenues there falling three percent to 1.2 billion euros.
   
Growth also slowed in several other European markets, with Germany and Austria seeing just a one-percent rise in revenues from the same quarter last year.
   
In the industrial sector, which accounts for about 70 percent of the revenues in those two countries, Adecco said income grew only two percent, compared to 11 percent in the second quarter, amid "weaker demand from clients in the automotive and equipment manufacturing sectors."
   
Sales, meanwhile, swelled elsewhere on the continent, with the Nordic countries and Adecco's home market Switzerland seeing revenues swell by six percent.
   
The United States, the company's second largest market, also saw sale grow five percent from the same quarter in 2013.
   
Despite its overall slower growth, Adecco still aims for its earnings before interest, taxes, depreciation and amortization (EBITDA) to make up more than 5.5 percent of its total revenue next year, de Maeseneire said.
   
He said he "remain convinced we will achieve our target," since the global economy was expected to pick up next year "despite the recent softening of the economic environment."
   
The temporary employment sector is considered a good indicator of economic activity as a whole, since companies adjust their temporary staffing in accordance with economic growth expectations.

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WORKING IN SWITZERLAND

Which countries does Switzerland have working holiday visa agreements with?

Switzerland has made reciprocal agreements regarding working holiday visas with several countries. Here's what you need to know.

Which countries does Switzerland have working holiday visa agreements with?

Over the past few decades, countries around the globe have rolled out ‘working holiday visa’ agreements.

These visa schemes, largely targeted at young people, allow people to work and live in a particular country, usually for a set period of time and pursuant to certain conditions.

In recent years, Switzerland has expanded its own form of a ‘working holiday visa’, although there are some important differences to be aware of.

Unlike some of the better known schemes like those in place in Australia, applicants are discouraged from moving around and are generally required to stay with the one employer for the duration.

The goal of the visa scheme is to allow applicants to “expand their occupational and linguistic skills in Switzerland”.

The visa scheme runs for 18 months and cannot be extended.

Which countries does Switzerland have working holiday visa agreements with?

The agreements are made between countries, meaning your fate will depend on whether your government has at some point struck a deal with Switzerland.

EXPLAINED: What’s the difference between permanent residence and Swiss citizenship?

If you are from the European Union or an EFTA country (Iceland, Liechtenstein, Norway and Switzerland), then you will be able to live and work in Switzerland as is – and will not need to go through this process.

If you come from outside the EU, you will only be able to apply for this visa if you are a citizen of the following countries:

Australia, Argentina, Canada, Chile, Indonesia, Japan, Monaco, New Zealand, the Philippines, Russia, South Africa, Tunisia, Ukraine and the United States.

What does ‘reciprocal’ mean in this context? 

Where these agreements have been struck, they have entitled citizens of both countries to certain rights and permissions in the other country. 

However, while these arrangements might be reciprocal, they are not identical. 

For instance, while citizens of Australia can enter Switzerland and work, the rules for Swiss citizens in Australia are significantly different. 

Therefore, if considering each program, be sure to study all of the relevant details as these will change from country to country and from agreement to agreement. 

More information is available at the following link. 

EXPLAINED: How to get a working holiday visa in Switzerland

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