{"id":34206,"date":"2023-05-04T12:52:56","date_gmt":"2023-05-04T12:52:56","guid":{"rendered":"https:\/\/lynettelockhart.com\/client\/adecco-sales-top-forecast\/"},"modified":"2023-05-04T12:56:04","modified_gmt":"2023-05-04T12:56:04","slug":"adecco-sales-top-forecast","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/adecco-sales-top-forecast\/","title":{"rendered":"Adecco sales top forecast as corporate Europe hires temps"},"content":{"rendered":"

By Andrey Sychev<\/p>\n

(Reuters) -Adecco Group beat first-quarter sales expectations on Thursday as companies turned to temporary workers after laying off staff to cope with economic uncertainty.<\/p>\n

The group reported an 8% rise in quarterly sales to 5.89 billion euros ($6.53 billion), beating analysts’ consensus forecast of 5.83 billion euros.<\/p>\n

Sales in its biggest unit Adecco, which offers permanent and flexible staffing services, grew 3% organically and brought in two-thirds of revenues in the quarter, underpinned by resilient demand for temporary workers.<\/p>\n

The division’s result was especially strong in Europe, thanks to demand from the automotive, logistics, and services sectors. Asia-Pacific saw a record 10% increase, though North America lost 8% due to lower volumes. <\/p>\n

“We see a pretty good dynamic overall. Talent scarcity is there to last both for blue-collar and white-collar jobs, driven by demographics and personal choices,” Adecco’s CEO Denis Machuel said during a conference call. <\/p>\n

Adecco shares opened 2.5% higher, before shedding gains to fall 2% by 1215 GMT.<\/p>\n

ING analyst Marc Zwartsenburg said the stock’s reversal was “more due to fear of further economic weakness, or maybe potentially a recession”. “It’s not about the results… but about the outlook statements,” he said. “There you see room for caution.” <\/p>\n

In the current quarter, Adecco sees both gross margin and its selling, general and administrative expenses (SG&A) broadly in line with the first quarter, when gross profit margin came in at 21.3% and SG&A at 18.4% of revenues.<\/p>\n

The performance of staffing firms such as Adecco and Randstad is seen as a bellwether for broader economic activity as companies’ appetite for hiring indicates confidence in the economy. Peer Randstad’s shares were down 2% at 1215 GMT, tracking Adecco. <\/p>\n

European companies have accelerated hiring to meet rising demand in the region’s dominant service sector as the euro zone economy recovers faster than expected.<\/p>\n

Sales in Adecco’s career transition business, which offers coaching services to employees and organisations, surged by 63% on a reported basis, driven mainly by the U.S. and UK markets, as well as by the tech sector in general.<\/p>\n

Asked about the impact of developments in artificial intelligence (AI) on the job markets, Machuel said many blue-collar roles will remain as AI cannot fully replace them, but that employees will have to adapt to possible changes in workflow. <\/p>\n

“Some clerk jobs will probably be reduced by AI,” the CEO of the world’s second-biggest human resources firm by revenue said. <\/p>\n

From the company’s perspective, AI offered opportunities, Machuel said. “We are quite positive about AI, it can also bring efficiency to our business,” he said. <\/p>\n

($1 = 0.9021 euros)<\/p>\n

(Reporting by Andrey Sychev in Gdansk; Editing by Muralikumar Anantharaman, Mark Potter and Jan Harvey)<\/p>\n

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By Andrey Sychev (Reuters) -Adecco Group beat first-quarter sales expectations on Thursday as companies turned to temporary workers after laying off staff to cope with economic uncertainty. The group reported an 8% rise in quarterly sales to 5.89 billion euros ($6.53 billion), beating analysts’ consensus forecast of 5.83 billion euros. Sales in its biggest unit […]<\/p>\n","protected":false},"author":8,"featured_media":34207,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-34206","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ4305P-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=34206"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34206\/revisions"}],"predecessor-version":[{"id":34208,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34206\/revisions\/34208"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/34207"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=34206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=34206"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=34206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}