CHESEREX, Switzerland--(BUSINESS WIRE)--November 5, 1996--Adecco (formerly Adia) reported today revenues for the third quarter ended September 30, 1996 of CHF 2,024 million from continuing operations, excluding the cleaning and security business, which was sold in September 1996. This represents
Pro Forma Results
On a like for like basis, including the revenues of both Adia and Ecco for the period July 1996 to September 1996, sales were CHF 2,356 million, up 6.7% over the same period of the previous year. Revenues, excluding the effects of the acquisitions of Roevin (UK), BCI (USA), EcoNova (CH) and the divestment of PGA (USA), which is a better measure for the strength of the business, increased by 8.6% in the third quarter and by 7.8% for the 9 months ended September 30, 1996.
Pro Forma Results by Region
France continues to present a challenging economic environment. According to PromaTT (Franch temporary employees' union), the temporary staffing market declined 7% in the third quarter. Therefore, with a decline in revenues of 4%, Adecco continued to gain market share. We do not expect a significant change to the market outlook for the remainder of the year.
Europe, outside of France, performed extremely well showing revenues increasing by 23% for the quarter. Great Britain, Spain and the Netherlands increased sales by over 30%, whereas only Germany experienced a 4.4% decline in sales.
As expected, North America continued to post strong revenue increases. Generalist and specialty brands performed equally well in the third quarter. For once the strengthening US Dollar had a positive impact on sales measured in Swiss Francs.
Finally, revenues of the Asia/Pacific region increased by 13%. Growth would have been significantly higher without the 20% decline of the Japanese Yen. "Given the challenging economic environment, especially in France, Germany and Switzerland, we are pleased with Adecco's top line growth. We are currently focusing all of our efforts on the integration of the Adia and Ecco business to release potential synergies and further strengthen the position of Adecco to ensure continued growth," commented John Bowmer, Chief Executive Officer of Adecco.
Adecco will not release earnings until the merger accounting and restatement of the Ecco financial statements to USGAAP is completed and audited. The next earnings release will cover Adecco's business year ending December 31, 1996.
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Pro Forma Revenues of Adecco(a)
Quarter Ended Nine Months Ended
September 30, 1996 September 30, 1996
in Mio. CHF. 1996 1995 % Change 1996 1995 % Change
France 1,061 1,104 -4.0 2,854 2,940 -3.4
Rest of
Europe(b) 595 483 23.2 1,514 1,248 21.3
North
America(c) 486 395 23.0 1,382 1,162 19.0
Asia/Pacific 151 133 13.3 410 361 13.6
Acquisitions,
Divestments,
Other 62 93 n.m. 146 286 n.m.
Total Adecco 2,356 2,208 6.7 6,306 5,996 5.2
(a) Includes revenues of Ecco and Adia, excluding sales of Security
and Cleaning business.
(b) Excludes acquisitions of Roevin and EcoNova.
(c) Excludes acquisitions of BCI and divestment of PGA.
CONTACT: Peter Pfister, Chief Financial Officer
Mark Eaton, Corporate Controller
Telephone: ++1 (415) 610-1000
Francois Vassard, Vice President Marketing
and Public Relations
Telefone ++33 472 82 58 58