ADECCO, THE world’s largest staffing company, pledged to keep a firm grip on costs as it grapples with weak demand in parts of Europe.

The Swiss company beat first-quarter profit forecasts as robust results in north America and Germany helped offset weakness in its biggest market, France.

Adecco, which is providing staff for the London 2012 Olympics, said it expects conditions in Europe to remain tough and is prepared to cut costs.

“For us, more important than growth for the full year is a clear commitment to focus on disciplined pricing and taking out measures on the cost side when needed,” chief financial officer Dominik de Daniel said in a telephone interview.

Dutch rival Randstad has warned of uncertain developments in Europe, while US competitor ManpowerGroup forecast a double-digit decline in southern Europe in the second quarter.

Unemployment in the euro zone equalled a 15-year high in March with a slump in factory activity and worsening business sentiment suggesting no let-up in the number of job losses anytime soon.

Chief executive Patrick De Maeseneire said Adecco was gaining market share in Germany – Europe’s economic powerhouse – and Austria while southern Europe was experiencing a slowdown.

In France, Adecco’s biggest market with a quarter of group sales, first-quarter revenue fell 10 per cent year-on-year, underperforming the market.

Revenue in Iberia and Italy dropped 9 per cent and 2 per cent respectively.

In north America, the group’s second-biggest market, revenue rose 1 per cent, while in Germany and Austria, revenue rose 10 per cent, driven by strong demand from car manufacturers.

Adecco’s gross margin rose 80 basis points to 18.2 per cent, as its more lucrative professional staffing business outpaced general staffing.

Total sales rose 2 per cent to €5.035 billion, but were down 1 per cent excluding acquisitions and currency impact.

First-quarter net income rose 12 per cent to €112 million, beating the average forecast of €100 million in a Reuters poll of analysts. – (Reuters)