* Adecco misses forecast with Q2 net loss of 147 mln euros
* Sees no material pick-up in business, more cost-cutting
* To buy UK's Spring Group for 108 mln pounds ($180 mln)
* Shares fall, underperform sector
(Adds background, updates shares)
By Katie Reid
ZURICH, Aug 11 (Reuters) - Adecco, the world's largest staffing group, said on Tuesday it had yet to see a recovery in its main European and U.S. markets, and had launched a new round of cost-cutting after posting a sharp drop in second-quarter sales.
"Looking ahead, management anticipates no material pick-up of business activities and has therefore initiated further restructuring measures," the company said after announcing an unexpected second-quarter net loss due to one-off charges.
Revenue slipped 31 percent to 3.6 billion euros ($5.10 billion) as firms across the world slashed their workforces to offset the fallout from the economic slump, but Adecco said the pace of decline had eased in most markets during the quarter.
Unemployment has risen strongly since the crisis started and is likely to break through the 10 percent mark before long in the euro zone, after climbing to a 10-year high of 9.4 percent in June, while the United States expects its unemployment rate to also hit 10 percent this year.
Adecco, which has already shut branches and cut jobs to protect its margins, will cut more full-time equivalent employees after this number was reduced by 19 percent in the second quarter, Chief Financial Officer Dominik de Daniel told Reuters.
The group expects to incur another 40 million euros of restructuring costs in the second half, after charging 54 million euros in the second quarter, 40 million euros more than previously indicated.
Shares in Adecco were down 4.2 percent at 50.65 Swiss francs by 1128 GMT, when the DJ Stoxx European industrial goods and services index was down 0.4 percent.
"Overall results are below expectations even if we applaud the continued cost discipline of the company," Vontobel analyst Michael Foeth said in a note.
EASING PACE OF DECLINE, BUT NO RECOVERY
Staffing company stocks jumped at the end of last week after the latest U.S. employment data showed the first decline in the U.S. jobless rate since April 2008.
However, analysts cautioned seasonal factors had to be considered and questions remained about the pace and sustainability of the expected recovery in temporary staffing.
Adecco would be able to give a more detailed outlook after the third quarter, Chief Executive Patrick De Maeseneire, who has been at the helm since June, told Reuters in an interview.
Adecco's comments echo those made recently by Dutch rivals Randstad and USG People as well as America's Manpower, which have yet to see a recovery in their employment markets despite having seen the pace of decline ease in recent months.
Michael Page, Britain's second-largest recruiter behind Hays , also said it had seen a stabilisation in some markets but did not expect a firm recovery until next year.
Adecco swung to a second-quarter net loss of 147 million euros after making impairment charges of 192 million euros on goodwill and intangible assets which it said were mainly due to the severe impact of the economic downturn on its German market.
Analysts had on average expected the company to make a second-quarter net profit of 29 million euros.
In debt markets, five-year credit default swaps on Adecco's debt were 8.5 basis points wider at 127.5 basis points, a trader said, with some concern about the possibility of a credit rating downgrade to a very low investment grade.
SPRING SALE
The company also said on Tuesday it hoped to boost its professional staffing business with the buy of Britain's Spring Group for 108 million pounds ($180 million), or 62 pence a share.
"With this transaction Adecco will strengthen its position in the fragmented UK market and further increase its professional staffing exposure," Adecco said.
Spring Group had sales of 517 million pounds in 2008.
"The acquisition seems like a reasonable one. They have pretty low margins, but they are paying a pretty low price for it," Fortis analyst Teun Teeuwisse said. ($1=.6000 pounds) ($1=.7059 euros) (Editing by Greg Mahlich and Simon Jessop)