Swiss human resources firm Adecco SA (ADO.L, AHEXY.PK ADO.L, AHEXY.PK) Wednesday reported a 74 percent decline in fourth-quarter profit as revenues slid 3 percent amid a tough Europe. The company said that going forward, it is committed to pay at least a stable dividend compared with the prior year.
Net income attributable to shareholders plunged to 35 million euros ($45.6 million) from 133 million euros in the previous year.
Revenues slid to 5.027 billion euros from 5.194 billion euros in the prior year, and declined 6 percent organically. Currency fluctuations had a positive impact of around 2 percent on revenues.
Revenues in France declined 17 percent to 1.2 billion euros and Permanent placement revenues were down 29 percent.
In constant currency, Permanent placement revenues decreased 10 percent to 77 million euros, while revenues from the counter-cyclical Career Transition (outplacement) business rose 3 percent to 68 million euros.
In General Staffing business, revenues decreased 7 percent to 3.8 billion euros with a 9 percent fall in the Industrial business and a 4 percent drop in the Office business.
In North America, revenues increased 8 percent organically to 947 million euros. General Staffing revenues increased 7 percent in constant currency and Professional Staffing revenues grew by 8 percent organically.
In constant currency, UK & Ireland revenues slid 1 percent to 490 million euros and Permanent placement revenues declined 25 percent.
Annual profit declined 27 percent to 377 million euros from 519 million euros in the prior year. Revenues were 20.536 billion euros in comparison with 20.545 billion euros last year, but dropped 4 percent organically.
According to the company, most of Europe was challenging during the year with double-digit revenue declines in France, Italy and Iberia. In North America, organic revenue growth picked up throughout the year and the Emerging Markets continued to grow in double-digits.
The company proposed a dividend of 1.80 Swiss francs per share for 2012, flat with last year.
Adecco said that in addition to the pay-out range of 40 percent to 50 percent of adjusted net earnings, the company is committed to pay at least a stable dividend compared to the previous year even if the pay-out range is temporarily exceeded.
The firm said its revenues were down 5 percent in the first two months of the first quarter of 2013 on an organic basis as well as adjusted for trading days. Within Europe, France remained challenging.
Adecco believes that the mid-term EBITA margin target of above 5.5 percent is achievable in 2015.
The stock fell 1.3 percent in Zurich on Tuesday to close at 54.70 francs.
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