ZURICH (Aug 6): Adecco Group reported slightly better-than-expected sales of €6 billion (US$6.93 billion) during the second quarter, but operating income fell short of forecasts, the firm's latest results showed on Thursday.

The Swiss company, which provides temporary and permanent staff, said operating income fell 5% compared with the second quarter of last year to €109 million, undershooting analyst forecasts for €130 million.

The revenue performance compared with a forecast for a figure of €5.95 billion in the company-gathered consensus.

"Our strategy, rigorous execution and client and candidate focus continue to deliver strong performance," CEO Denis Machuel said in a statement.

"Momentum carried through the first half, with a fifth consecutive quarter of growth, at 5.6% year-on-year, and a further 160 basis points of market share gain."

Looking ahead, the group said that positive momentum in volumes had continued so far in the current quarter.

For the third quarter, it expected a modest sequential improvement in gross margin and that selling, general and administrative expenses, excluding one-offs, would be lower sequentially.

Staffing companies like Adecco are bellwethers for the broader economy, with companies hiring when they feel confident about the future, and holding back when gloomier.

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