*
Slight miss on net profit and sales in tough Q2, but EBITA
beats
*
Sees Q3 revenue decline in line with Q2, weak hiring to
persist
*
Shares rise 2.5% as Adecco's results outperform peers
(Recasts with shares, adds bullet points, EBITA beat paragraph
3, analyst comment paragraph 6, peers in paragraphs 7-8)
By Andrey Sychev
Aug 6 (Reuters) - Adecco's second quarter
results outperformed those of global rivals in the tough
staffing market, sending its shares higher on Tuesday, even as
the Swiss group warned that weak hiring trends would persist in
the third quarter.
The fortunes of Adecco, which supplies temporary and
permanent staff to offices, factories and logistics hubs, are
keenly watched for providing insight into the health of the
broader economy.
Adecco's earnings before interest, tax and amortisation
(EBITA) were 179 million euros ($195.5 million) in the quarter,
unchanged from last year on an organic basis and ahead of the
173 million expected by analysts' consensus.
Both revenue and net income fell 2% in the same period, when
adjusted for currency movements, trading days and acquisitions.
Among the worst performing regions by sales were France,
Britain, the Nordics and North America, where the tech and
automotive sectors were notably weak, Adecco said.
"Organic revenue decline was 2% slightly more than
anticipated but still well above market trends and peers,"
Vontobel analyst Michael Foeth wrote in a note.
Quarterly revenues at rivals Randstad and
ManpowerGroup ( MAN ) fell 7.5% and 6.9%, respectively.
British peers Robert Walters, Page Group
and Hays have also recently warned of tough hiring
market conditions in the near term, as workers avoid switching
jobs and companies take longer to fill vacancies amid slowing
economies.
Adecco's results were helped by increased cost cuts that
reached 162 million euros by the end of June, above its 150
million euro target, it said.
The company added it expects July-September revenue to
decline at a similar pace to the second quarter, while it
continues to focus on cutting cost to shield its profits.
($1 = 0.9155 euros)