UPDATE: Adecco Q2 Net Profit Surges 15%

Adecco SA

reported a 15% gain in its second-quarter profit. The company's quarterly net profit surged to 145 million euros ($194 million), versus a year-ago profit of 126 million euros. Analysts were expecting a profit of 142 million euros. Its basic EPS surged 18% to EUR 0.82 in the quarter. The company's EBITA, excluding restructuring costs, climbed 18% in constant currency to EUR 228 million. Its revenue rose 1% to 4.99 billion euros versus 4.93 billion euros, while underlying revenue climbed 5%. Analysts projected revenue of 5.07 billion euros for the quarter. Revenue in France came in flat, versus a 1% gain in the first quarter. Revenue in North America climbed 3%, while revenue in Italy climbed 18%. Revenue in emerging markets surged 12%, while revenue in the UK & Ireland jumped 3%. Permanent placement revenue rose 8% in constant currency to EUR 89 million, while revenue from Career Transition (outplacement) surged 9% in constant currency to EUR 74 million. Patrick De Maeseneire, CEO of the Adecco Group said: “In the second quarter our colleagues delivered another good performance. Revenue growth continued at a similar level to the first quarter. Growth remained steady in Europe, led once again by our Industrial business, and as expected we saw a pick-up in activity in North America.” The gross margin rose 20 bps to 18.1%. Adecco shares fell 1.62% to close at $35.90 yesterday.