Adecco first-quarter profit drops 40 percent

ZURICH Tue May 7, 2013 1:12am EDT

ZURICH May 7 (Reuters) - Adecco, the world's largest staffing company, said it expects more favourable economic conditions towards the end of the year, as it posted a 40 percent drop in first-quarter profit.

The euro zone's dogged debt crisis has paralysed European job markets, squeezing revenues at staffing firms like Adecco and rivals Dutch peer Randstad and U.S.-based ManpowerGroup Inc.

Adecco's first-quarter net profit fell to 67 million euros ($87.48 million), undershooting the average forecast of 80.1 million euros in a Reuters poll.

Revenues fell 7 percent organically, partly hit by fewer trading days in the quarter, making it the fifth consecutive quarter of contraction.