Adecco, the world’s No. 1 staffing group, expects further revenue growth after Q3 profit beat expectations, as uncertain economic times provide an incentive for companies to take on temporary workers.
Adecco, which will provide personnel for the 2012 Olympic Games in London, said net income in the third quarter rose 42 percent to 128 million euros (US$177 million), compared with 113 million euros forecast in a Reuters poll.
“Yet more totally impressive proof of the temping agency’s performance,” analyst Martin Koch at Swiss private bank Wegelin said.
“The development in the job market gives us hope generally of a further recovery of global markets,” he said.
Temporary employment is often seen as a leading indicator for wider labor markets.
Companies around the world are grappling with a slowdown in the global economic recovery that has prompted the US Federal Reserve to provide fresh stimulus.
Last month eurozone manufacturers boosted output, while in the US, employment surged much more than expected, with private companies hiring workers at the fastest pace since April.
Shares in the Adecco traded up 2.9 percent higher in morning trading, compared to a flat sector index.
“The unemployment levels are not changing short term,” chief executive Patrick De Maeseneire said.
“Why would you hire fixed if you can have the people on a flexible basis in a still rather volatile environment?” he asked.
France and North America, Adecco’s two biggest markets, reported robust growth. Adecco also said its professional staffing business accelerated in the third quarter, adding that last month showed a similar pattern with no signs of a slowdown.
Adecco also said it was not planning any major acquisitions.
Its rivals Randstad and US-listed Manpower also both trounced forecasts with their most recent quarterly profit.
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