Economy Adecco says economic situation uncertain as third-quarter profit falls

Adecco says economic situation uncertain as third-quarter profit falls

The logo of Swiss Adecco Group is seen at its headquarters in Glattbrugg, Switzerland October 11, 2016.
The logo of Swiss Adecco Group is seen at its headquarters in Glattbrugg, Switzerland October 11, 2016.

Adecco (ADEN.S) said the global economic situation remained uncertain despite appearing to brush off the impact of the Brexit vote as the world’s largest staffing company posted a weaker-than-expected third-quarter profit.

Zurich-based Adecco said on Tuesday its earnings before interest, tax and amortisation for the three months ended Sept. 30 fell 10 percent to 294 million euros (262 million pounds), missing the average estimate of 313 million in a Reuters poll.

Revenue rose 2 percent to 5.81 billion euros from 5.67 billion euros a year earlier, boosted by growth in France, Italy and Britain. Analysts polled by Reuters had on average expected an increase to 5.79 billion euros.

Adecco said its sales growth had improved to 4 percent in September when adjusted for currency effects, above a 3 percent rise during the quarter as a whole.

September is seen is as a crucial month for the hiring industry, with employers deciding how many new employees they may need after examining their order books on their return from the summer holidays.

The company said its growth rate in October was similar to September’s 4 percent, but warned about increasing uncertainties in the hiring market.

“Despite this modest improvement in growth, the global economic outlook remains uncertain,” Adecco said in a statement.

The company made no specific mention of how it had been affected by Britain’s June vote to quit the European Union, but did say revenues from the country and neighbouring Ireland had risen by 4 percent during the quarter.

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