CHESEREX (dpa-AFX) - Switzerland-based human resources firm Adecco SA (AHEXY.PK) reported Tuesday a rise in its third quarter net income, reflecting revenue growth in all its markets.
Third quarter net income attributable to the company's shareholders increased to 145 million euros or 0.76 euro per share from last year's 128 million euros or 0.67 euro per share.
The increase in profit was despite a 2 percent rise in selling, general and administrative costs and a decrease in gross margin by 60 basis points to 17.2 percent.
Group revenues increased 4 percent year-over-year to 5.3 billion euros, including a negative impact of 3 percent from currency fluctuations.
Geographically, revenues increased by 7 percent to 1.6 billion euros in France, while North American revenues grew 5 percent to 903 million euros.
The company recorded better growth in Germany & Austria, with revenues increasing 23 percent year over year, and revenues from Italy rose 19 percent, driven by strong demand in the industrial staffing segment.
Both the general staffing and the industrial business recorded a 9 percent growth in revenues year over year.
Commenting on the results, the company's CEO Patrick De Maeseneire stated, 'Our two largest markets, France and North America, delivered solid growth. Whereas general staffing in North America performed well, growth in professional staffing was disappointing. Germany, Italy and Emerging Markets maintained strong double-digit growth.'
'The EBITA margin was 4.3%, down 20 bps year-on-year. We know where we need to focus and are convinced we have the right measures in place to reach our mid-term EBITA margin goal of over 5.5%,' Maeseneire added.
Aiming tight cost management, the company noted it expects another solid quarter in fourth quarter and remains committed to its mid-term goal of reaching an EBITA margin above 5.5 percent.
Monday, the stock closed trading at $22.28, while trading in the range of $18.36 to $35.57 for the past 52 weeks, over the counter.
Copyright RTT News/dpa-AFX
