Randstad More Bullish On Recovery Even As Profit Misses Views
February 18 2010 - 2:47AM
Dow Jones News
Dutch staffing group Randstad Holding NV (RAND.AE) Thursday
posted a worse-than-expected fourth-quarter net profit, but
signaled increased confidence in an economic recovery as markets
stabilized.
"Our markets have stabilized and classical recovery patterns are
visible," said Chief Executive Ben Noteboom. He added that "if
recovery continues we should do very well."
The Diemen-based company swung to a net profit of EUR46 million
in the fourth quarter of 2009, from a net loss of EUR233 million a
year earlier when it was burdened by a non-cash goodwill impairment
of EUR500 million related to its acquisition of Vedior. Analysts
had expected a EUR54.6 million net profit for the 2009 period.
Revenue at the second-largest staffing agency by sales behind
Adecco SA (ADEN.VX) dropped 19.7% to EUR3.18 billion. from EUR3.96
billion, just below analysts' forecasts of EUR3.22 billion.
Randstad said the recovery remains fragile, but it is facing the
coming quarters with increased confidence.
Global staffing markets have contracted sharply in the past year
as companies cut back on hiring or laid off staff in response to
the downturn. Randstad has been cutting costs since early 2008 and
was able to realize additional savings through the merger with
Vedior NV, which it bought last year. Cost reductions were
accelerated as the global recession started to gain pace, with
Randstad cutting branches and personnel.
Randstad scrapped its 2009 dividend for the second time in a
row, citing its leverage ratio.
It's net debt to earnings before interest taxes, depreciation
and amortization, or Ebitda, stood at 2.5 at the end of the fourth
quarter, above its target of between 0 an 2.
"We therefore aim to further reduce debt and propose that no
ordinary dividend is paid for 2009," the company said in a
statement.
Randstad shares Wednesday closed at EUR33. They have lost 5.4%
since the start of the year, compared with a 3.6% fall for the
benchmark AEX.
-By Robin van Daalen, Dow Jones Newswires; +31-20-5715200;
robin.vandaalen@dowjones.com
Randstad NV (EU:RAND)
Historical Stock Chart
From Jun 2024 to Jul 2024
Randstad NV (EU:RAND)
Historical Stock Chart
From Jul 2023 to Jul 2024