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updated 01:10, Sat November 03, 2007

Adecco 3rd-Quarter Net Profit Climbs 40 Percent to $332M on Strong Margin Growth, Tax Benefits

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ZURICH, Switzerland (AP) -- Employment firm Adecco SA posted a 40 percent increase in third-quarter net profit Friday on strong margin growth and tax benefits.

Total net income in the third quarter rose to euro230 million (US$332 million) from euro164 million in the same period a year earlier.

Included in the figures were euro12 million (US$17 million) in social security rebates given to employers in France, and euro28 million (US$40 million) resulting from lower income taxes, Adecco said.

Revenue from ongoing operations rose 2 percent to euro5.44 billion (US$7.85 billion) in the three months through September, compared with euro5.3 billion in the year-earlier period.

Analysts at Zuercher Kantonalbank said the reported revenues were lower than expected, but that Adecco's increased profit margins were a welcome surprise.

Adecco shares dropped 1.4 percent to close at 70.10 Swiss francs (US$60.79; euro41.98) in Zurich.

The company also announced Friday it will buy back euro400 million (US$577 million) of its own shares by the end of 2008.

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