Adecco Profit Beats Estimates as CEO Sees Europe Decline Easing
Second-quarter net income rose 12 percent to 126 million euros ($168 million), beating the 112.1 million-euro estimate of eight analysts in a Bloomberg survey. Sales declined 3 percent organically to 4.9 billion euros, the Glattbrugg, Switzerland-based company said in a statement today.
“Labour markets are starting to stabilize around Europe and we see some more positive signs in our business,” Chief Executive Officer Patrick De Maeseneire said in the statement. Business in June and July and “is encouraging for the second-half outlook,” he said.
De Maeseneire, the former chief of Barry Callebaut AG (BARN) who became head of Adecco in 2009, has presided over a share-price rise of about 25 percent this year, as Europe’s job market decline eased. The euro area probably exited recession in the three months through June after a record six quarters of economic contraction.
Revenue declined 12 percent in France, which generated 25 percent of sales last year, and across Europe rates of decline eased further, Adecco said.
Adecco and Randstad Holding NV (RAND) said July 11 they’re among temporary-staffing companies that are being probed by French regulators investigating whether they infringed competition rules. Adecco is fully cooperating with regulators, the company reiterated today.
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