Swiss HR solutions provider Adecco SA (AHEXY.PK,ADO.L) Wednesday reported increased profit for the fourth quarter, amid lower costs and expenses, even as revenues slipped fractionally. Further, the company hiked its dividend.
For the fourth quarter, net income attributable to the company's shareholders surged to 174 million euros ($241.1 million) from 35 million euros in the prior year.
Gross margin improved 50 basis points or bps to 18.3 percent as temporary staffing had a 40 bps positive impact and outplacement business added another 10 bps.
Revenues slid 1 percent to 4.983 billion euros from 5.027 billion euros in the prior year. On a constant currency basis, revenues advanced 4 percent.
In constant currency, permanent placement revenues increased 3 percent and revenues from the outplacement business advanced 10 percent.
Revenues totaled 1.2 billion euros in France, flat with last year, while it grew 3 percent in North America to 928 million euros. In the UK & Ireland, revenues grew 7 percent to 501 million euros, and climbed 10 percent in Germany & Austria to 425 million euros. Comparisons are on a constant currency basis.
Cost of services dropped to 4.07 billion euros from 4.13 billion euros. Selling, General and Administrative Expenses decreased 7 percent to 692 million euros. Restructuring costs fell to 17 million euros from 46 million euros last year.
For 2013, net income attributable to the company's shareholders climbed to 557 million euros from 377 million euros in the prior year.
Annual revenues dropped 5 percent to 19.503 billion euros from 20.536 billion euros. Revenues were down 2 percent at constant exchange rates.
In constant currency, permanent placement revenues decreased 3 percent while revenues from the counter-cyclical Career Transition (outplacement) business advanced 7 percent.
The Board proposed a dividend per share of 2.00 Swiss francs for 2013, up 11 percent from the prior year.
Looking ahead, the firm said most European economies have begun to recover. The company expects demand for flexible labor to continue to increase in 2014.
Revenue growth in constant currency and adjusted for trading days was 5 percent for January and February. Revenue trends across all major geographies were similar to the fourth quarter.
The company continues to be focused on reaching its Earnings Before Interest, Tax and Amortization or EBITA margin target of above 5.5 percent in 2015.
The stock closed down 0.6 percent at 75.20 francs on Tuesday.
For comments and feedback contact: editorial@rttnews.com
Business News