CORRECT: Randstad Profit Beats Views, Expects Recovery To Continue
April 28 2010 - 3:25AM
Dow Jones News
Dutch staffing group Randstad Holding NV (RAND.AE) Wednesday
posted a higher-than-expected first-quarter profit as a drop in
revenue was more than offset by lower operating expenses, and it
said that it expects its markets to improve in the second
quarter.
"In a quarter that is historically the weakest of the year, we
achieved a solid performance, thanks to cost control and careful
attention to margins," said Chief Executive Ben Noteboom. He added
that "our prospects for the near future are better than they have
been for quite some time."
Randstad, the second-largest staffing agency by sales behind
Switzerland's Adecco SA (ADEN.VX), said the industrial sector in
Germany and the U.S. showed further signs of a recovery and that it
expects its markets to improve in the second quarter. However, the
company said that the Netherlands, its home market, was still
lagging and that organic revenue fell 14% on the quarter.
The Diemen-based company swung to a net profit of EUR20 million
in the first quarter of 2010 from a net loss of EUR54.2 million,
when it booked over EUR60 million in restructuring charges and
costs for the integration of Dutch rival Vedior NV, which it
acquired in 2008.
The bottom line benefited from a 20% drop in operating expenses
to EUR499.6 million.
Revenue fell 1% to EUR3.04 billion from EUR3.1 billion, above
analysts' forecasts of EUR3 billion.
However, during the quarter the revenue trend improved, with the
rate swinging from a contraction of 5% in January to an increase of
4% in March. The company added that the improving trend continued
into April.
Randstad shares closed Tuesday at EUR40.24. They have gained 15%
this year compared to a 4% rise in the benchmark AEX, as investors
hope that the early-cycle staffing sector will be the first to
benefit from an economic recovery.
-By Maarten van Tartwijk, Dow Jones Newswires; +31 20 571 5201;
maarten.vantartwijk@dowjones.com
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