By John Revill
ZURICH (Reuters) -Adecco Group saw a slight slowdown in sales growth in October as uncertainties about the global economy crept into hiring decisions, the staffing company said on Thursday while reporting third-quarter results in line with forecasts.
The Swiss company, which supplies temporary and permanent staff to offices, factories and warehouses, said October sales increased by around 5%, down from the 6% increase in September.
"The markets are very difficult to read at the moment, it's a very diverse situation," Chief Executive Denis Machuel told Reuters, adding demand for talent services remained healthy.
"Our aim is to outperform the market whatever happens," said the former Sodexo (EPA:EXHO) boss who took charge in July.
For the three months to the end of September, Adecco (SIX:ADEN) reported sales rising 16% to 6.044 billion euros ($5.94 billion), in line with forecasts for 6.039 billion euros in a consensus of analyst forecasts.
On a like-for-like basis, which cuts out the impact of working days, currency movements and acquisitions, Adecco's sales increased by 6%.
Net profit, however, fell 19% to 108 million euros, slightly ahead of forecasts for 106 million euros, as it hired more sales staff.
The company said on Thursday it would launch a new 150 million euro savings scheme to improve its operating profit margin to 6%. The third quarter figure was 3.6%.
Adecco, along with peers Randstad and ManpowerGroup, is seen as a bellwether for the broader economy, with companies taking on staff when they feel confident.
Machuel said a scarcity of skilled workers remained an important driver in the employment market, with a high level of job vacancies in the United States.
"The market is very strong in Asia Pacific and Latin America. Europe is a little bit slower," he said.
Wage inflation was also supporting sales growth, with the company seeing price increases in the mid-single-digit range, the company added.
Its shares fell 2.3% in early trading.
($1 = 1.0178 euros)