Adecco Third-Quarter Net Rises 40 Percent on Europe

Adecco SA, the world's biggest temporary employment company, said third-quarter profit advanced 40 percent, helped by increased hiring in Europe and a change in French social security calculations.

Net income climbed to 230 million euros ($332 million) from 164 million euros a year earlier, the Glattbrugg, Switzerland- based company said today in a statement. The median of eight analyst estimates compiled by Bloomberg and gathered by e-mail was for profit of 188 million euros.

Economic growth has pushed unemployment to a record low in the 13 countries that use the euro, fueling demand for workers and helping offset a slowdown in U.S. hiring. To reduce dependence on economic swings, Adecco has bought six rivals in two years to expand professional staffing, including the 600 million-euro acquisition in June of Germany's Tuja Group.

``We continue to see solid growth rates in the European and Asian staffing markets, while demand in the U.S. remains weak,'' Chief Executive Dieter Scheiff said in the statement.

Sales rose 2.2 percent to 5.44 billion euros. Adecco got a third of its revenue from France last year and has broadened its business in Germany. The company today reiterated its target to increase revenue annually by between 7 percent and 9 percent on average.

Adecco said it will spend as much as 400 million euros buying back shares through the end of next year. The company plans to use the stock to fund acquisitions or to give to holders of convertible bonds who decide to convert their bonds to shares.

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