Adecco CFO-staffing market yet to hit bottom-paper
* Conditions in 2009 and 2010 likely to remain tough
* Sees no signs of stabilisation in staffing markets
* Adecco still expected to post operating profit in Q2
ZURICH, June 17 (Reuters) - Conditions in the world's staffing markets are likely to remain tough in 2009 and 2010, the finance chief of the world's largest staffing company, Adecco (ADEN.VX), was quoted as saying on Wednesday.
"We are not seeing any clear signs of stabilisation," Dominik de Daniel told Swiss newspaper Finanz und Wirtschaft.
"In the first quarter, the decline in (our) sales accelerated as expected. In April, the situation did not get worse. But in our opinion it would be too early to talk of having reached a bottom," he said.
Staffing groups across the world, such as Dutch group Randstad (RAND.AS) and America's Manpower (MAN.N), are facing tough markets as companies cut back on hiring.
Adecco, the world's largest staffing company, still expects to post operating profit in the second quarter and is likely to reach its mid-term earnings before interest, tax and amortisation (EBITA) margin goal of 5 percent in the medium term, de Daniel said.
"Before the downturn came we had already reached a margin of 4.4 percent. The measures we are currently taking to improve our structure will also lead to higher profitability," he said.
The group's operating margin was 2.1 percent in the first quarter and Adecco has cut jobs and shut branches in a bid to protect profitability. The group planned to spend 50 million euros ($69 million) on restructuring costs in the first semester.
"I cannot rule out that in the second half in particular there will be more restructuring costs. As a result of the steep drop in sales we have to adjust our costs and we are constantly looking at additional measures," de Daniel said.
De Daniel repeated that Adecco was interested in buying companies in the area of higher-margin professional staffing and could spend 1 billion euros on acquisitions.
Last year, Adecco failed in a bid to buy Michael Page (MPI.L), which would have boosted its position in the white-collar arena.
But de Daniel said the professional staffing market, which has so far proven more resilient, would also face weaker demand.
"To a large extent the professional staffing segment gets hit comparatively later in the cycle. A further slowdown is therefore to be expected. But I don't think that the decline will be as severe as in the general staffing business," he said. (Reporting by Katie Reid; Editing by Dan Lalor) ($1 = 0.7200 euro)
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