Swiss human resources firm Adecco (ADO.L,AHEXY.PK) on Tuesday reported a 12 percent growth in profit for the first quarter, amid a marginal rise in revenue.
Net income attributable to Adecco shareholders rose to 112 million euros ($146 million) from 100 million euros last year. Earnings per share grew to 0.59 euros from 0.52 euros.
Group revenues grew 2 percent to 5.04 billion euros from 4.92 billion euros. Organically, revenue edged down 1 percent. Gross margin improved 80 basis points to 18.2 percent.
Organically, Permanent placement revenues grew 2 percent to 90 million euros, while revenues from the counter-cyclical career transition, or outplacement, business slid 3 percent to 68 million euros.
Revenues in France declined 10 percent to 1.3 billion euros with Permanent placement revenues dropping 7 percent.
In North America, Adecco's revenues grew 1 percent in constant currency to 964 million euros in the first quarter. In the UK & Ireland, revenues increased 9 percent in constant currency to 459 million euros.
The company witnessed revenue declines in Italy, Benelux, Nordics and Iberia.
Selling, general, and administrative expenses grew 8 percent to 734 million euros while provision for income taxes was flat at 41 million euros.
Patrick De Maeseneire, CEO of the Adecco Group said, "We are off to a good start in 2012...Our aim is clear: continued price discipline and tight cost control, while maintaining our focus on profitable organic growth opportunities. This keeps us well on track to reach our EBITA margin target of over 5.5% midterm."
The company expects North America to hold up in the second quarter, while Europe is expected to remain challenging.
Adecco said the plan is on track to merge the networks of Adecco and Adia under the single Adecco brand in France.
The stock closed in Zurich on Monday lower by 1.82 percent at 39.25 Swiss francs on 768,773 shares.
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