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Adecco Stock Dips On Weaker Than Normal Seasonal Pick-up, Backs Margin View

Shares of Adecco SA (AHEXY.PK,ADO.L) declined around 4 percent in Zurich after the provider of Human Resources solutions reported Wednesday that the seasonal pick-up in its business has been slightly weaker than normal, most notably in Germany and France.

In a statement on its current trading, the company noted that in the first two
months of the third quarter, underlying revenues increased 5% organically and adjusted for trading days.

The slightly weaker than normal seasonal pick-up reflects some uncertainty in parts of Europe, consistent with the recent softer economic data. In North
America, the business is holding up well.

Adecco added that it continues to be very focused on reaching its EBITA margin target of above 5.5 percent in 2015. Despite the recent softening of the economic environment, a reacceleration of GDP growth is expected for next year.

Citing this outlook and based on the good progress on its six strategic priorities and continued price and cost discipline, the company remains convinced that it will achieve its target.

Adecco is holding its Investor Days 2014 in Rome on September 24 and 25. The company will give an update on its strategic priorities and financial performance, and provide a deeper insight into several key regional operations.

In Zurich, Adecco shares were losing 2.55 Swiss francs or 3.84 percent, and trading at 63.85 francs.

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