Switzerland's Adecco 2010 profits soar

ZURICH: The world's biggest temporary staffing agency Adecco said on Thursday its 2010 net profit soared to 423 million euros ($586 million), up dramatically from the 8 million euros posted in 2009 as the economy recovered. Revenues came to 18.7 billion euros, up 12 percent, it said in a statement." 2010 was a good year for Adecco," said Patrick De Maeseneire, chief executive officer of the group which is seen as a barometer of the labour market." Most markets returned to strong double-digit revenue growth during the year. The growth was mainly driven by the industrial staffing segment and also the later cyclical office and professional staffing segments returned to growth," he added. In key markets such as North America, revenues were up 18 percent, while Germany gained 32 percent and the Nordic states 23 percent. However, Britain and Ireland suffered a decline of 1.0 percent and Japan a fall of 4.0 percent. The group also issued an upbeat outlook, as revenues were up 17 percent in January 2011 compared to a year ago. Even Japan returned to positive growth during the month." Based on these developments, management is confident of strong top line growth in the months ahead, albeit measured against higher comparables," Adecco said." We believe that the environment will stay favourable for flexible labour in 2011. Permanent jobs will be created but just enough to cover the new entrants into the labour market," it added. With unemployment expected to remain high in most developed countries, "most economic growth and activity will be covered by flexible labour," it noted.