Randstad Expects Recovery To Continue Into Third Quarter
First Published Thursday, 29 July 2010 07:15 am - © 2010 Dow Jones
By Robin van Daalen
Of DOW JONES NEWSWIRES
AMSTERDAM -(Dow Jones)- Dutch staffing group Randstad Holding NV (RAND.AE) Thursday said it still sees a broad recovery in its markets and expects growth to continue in the third quarter after its revenue in the second quarter grew for the first time in two years.
Net profit for the quarter ending June 30 was in line with analyst expectations.
"Some key economies like the U.S., Germany and France are clearly growing and our businesses in these countries are taking the lead in stimulating our growth," said Chief Executive Ben Noteboom. He added that similar patterns are emerging elsewhere in Europe and Asia Pacific.
Randstad, the second-largest staffing agency by sales behind Switzerland's Adecco SA (ADEN.VX), reported a net profit in the second quarter of 2010 jumped to EUR54.0 million from EUR10 million a year earlier when it booked about EUR12.5 million in restructuring charges and costs. Analysts had expected net profit of EUR54.2 million.
Excluding exceptional items, profit was EUR77.2 million, up 68% compared to last year when the bottom line was hit by a sharp drop in sales as a result of the global economic downturn, which started affecting the company in the summer of 2008. Randstad responded by adapting its cost base and accelerating the integration of Vedior NV, which it bought in early 2008.
Revenue rose 16% to EUR3.47 billion from EUR2.99 billion a year ago, above analysts' forecasts of EUR3.3 billion.
Randstad shares closed Wednesday at EUR35.83. They have gained 2.7% in value this year compared to a 0.1% drop in the benchmark AEX. The staffing sector is sensitive to economic trends and generally is the first to benefit from an economic recovery.
-By Robin van Daalen, Dow Jones Newswires; +31 20 571 52 01; robin.vandaalen@dowjones.com
