Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Adecco Q4 Profit Declines

3/1/2012 3:07 AM ET

Swiss human resources firm Adecco SA (AHEXY.PK) reported Thursday a lower fourth-quarter profit, citing continued softening of revenue growth during the period despite strength in emerging markets.

During the quarter, organic revenue growth was 3 percent. Permanent placement revenues increased 7 percent in constant currency, while revenues from counter-cyclical career transition business declined 6 percent organically.

EBITA, a key earnings measure, was 217 million euros in the fourth quarter, up 3 percent in euros, in constant currency and organically, while EBITA margin was flat with last year at 4.2 percent.

For the full year, EBITA growth was 14 percent organically and EBITA margin was up 10 basis points to 4.1 percent before integration costs. The company said it is on track to reach its 5.5 percent EBITA margin target in the midterm.

Commenting on the company's full-year results, CEO Patrick De Maeseneire said, "In 2011 we achieved double-digit organic revenue growth for the second consecutive year. General staffing, especially the industrial segment, continued to lead growth, while professional staffing growth remained moderate."

Meanwhile, Adecco said it expects additional costs of 10 million euros in the first half of 2012 to further optimize cost base in other European countries and to protect profitability.

In the fourth quarter, net income attributable to shareholders declined to 133 million euros from 141 million euros reported last year. Basic earnings per share were 0.71 euros, down from 0.73 euros per share in the prior-year quarter.

Group revenues for the quarter totaled 5.19 billion euros, up 4 percent in euros and in constant currency. Organically, revenues grew 3 percent from the preceding year, with emerging market revenues surging 21 percent in constant currency.

The board has also proposed a dividend of 1.80 Swiss francs per share for 2011, up 64 percent from the dividend paid for 2010.

In Zurich, Adecco shares closed Wednesday's regular trading at 45.34 francs, down 0.78 percent.

Register
To receive FREE breaking news email alerts for Adecco SA and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
First-time claims for U.S. unemployment benefits rose by more than expected in the week ended April 19th, according to a report released by the Labor Department on Thursday, with initial jobless claims climbing further off their recent lows. The report said initial jobless claims rose to 329,000, an increase of 24,000 from the previous week's revised figure of 305,000. After giving back some ground in the previous session, stocks are likely to move back to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 40 points. European Central Bank President Mario Draghi said on Thursday that any worsening of the euro area inflation outlook may prompt the bank to adopt a broad-based asset buying scheme. "Unlike the other contingencies, the objective here would not be to defend the current stance, but rather to increase meaningfully the degree of monetary accommodation," Draghi said in a speech in Amsterdam.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.