International staffing firm Adecco has announced an 83% fall in net profits for the first quarter of 2009 as the company was hit by the “exceptionally difficult” business environment.

Net profit slumped to €23m (£20m) compared to €137m (£122m) in Q1 2008. Revenues were down 26% to €3.7bn (£3.3bn). Gross profit fell 25% to €686m (£611m).

Earnings before interest, tax and amortisation (EBITA) was 80% lower at €43m (£38m).

Adecco’s office and industrial businesses were particularly badly hit with revenues declining by 38% in constant currency. IT fared comparatively well, registering only a 6% reduction in revenue.

Revenue in the UK and Ireland declined by 31% in constant currency. The region posted a small loss in EBITA.  The company says “the weak permanent placement business continued to negatively impact results”.

Dominik de Daniel, chief financial officer of the Adecco Group, says: “We continued to face strong pressure on revenues, with an organic decline of 28% in the first quarter this year.  Nonetheless, I am pleased to report that we were able to increase the gross margin by 40 bps to 18.5%, due to the good business mix.”