ZURICH - Adecco, the world's biggest temporary staffing agency, on Thursday reported a swing back into profit in the third quarter but at much lower levels than a year ago.

Third quarter net income was down 46 percent compared to the same period last year to 90 million euros (132 million dollars), the company said in a statement, recovering from a sharp loss in the second quarter of 2009.

"Market conditions have improved during the third quarter, especially in general staffing, and we have seen a gradual improvement of the revenue trend for the Adecco Group," said chief executive Patrick de Maeseneire in a statement.

Analysts had been predicting a net profit in the 38 million euro range, according to a survey by business news agency AWP.

Third quarter revenues fell by 27 percent compared to the same period last year to 3.72 billion euros, while operating income fell by 48 percent to 127 million euros, the company said.

Last month, Adecco announced the acquisition of two staffing companies, US based Spring Group and MPS Group in Britain.

Adecco said it had "seen first signs of a demand pick-up in general staffing" especially in light industrial sectors in France and North America, the group's biggest markets.

The group had reported a 169 percent drop in its second quarter net profit to 147 million euros as revenues in those markets plunged.