Adecco Lowers Profit Margin Guidance After Missing 2015 Targetby
Company sets 'through-the-cycle' margin target to 2020
Revenue growth picked up across Europe in October and November
Adecco SA, world’s largest provider of temporary staff, pared its guidance for profitability for the coming years amid sluggish growth in some western European markets.
The Glattbrugg, Switzerland-based company is seeking an earnings before interest, taxes and amortization margin of 4.5 percent to 5.0 percent through 2020, on average, it said in a statement on Monday. It had previously aimed for annual margins exceeding 5.5 percent of sales. Adecco reiterated 2015 fell short, at 5.2 percent.
Adecco, which is presenting its strategy to investors today, said while parts of Europe did see an uptick in business in the fourth quarter from the prior period, growth in North America remained flat. Overall, revenue rose 5 percent in the first two months of the fourth quarter, with a similar trend seen in December, the company said. That’s higher than the 4 percent growth rate for the third quarter.