Randstad Profit Up As Staffing Markets Show A Robust Recovery
October 28 2010 - 2:22AM
Dow Jones News
Dutch staffing group Randstad Holding NV (RAND.AE) said Thursday
it expects healthy growth in coming months as it reported an 18%
rise in third-quarter net profit due to a strong recovery in most
of its markets.
Randstad, which generates the bulk of its revenue in Western
Europe and the U.S., said that the recovery is robust and that it
expects "continued healthy growth" in the fourth quarter.
This echoed comments from Swiss rival Adecco SA (ADEN.VX), the
world's biggest temporary staffing agency by sales, which last
month gave a similarly upbeat outlook and said it didn't see any
signs of a slowdown. U.S. peer Manpower Inc. (MAN) last week also
flagged encouraging trends in most of its markets.
Randstad, the world's second-largest staffing firm by sales
after Adecco, swung to a net profit of EUR70.2 million in the third
quarter from a net profit of EUR59.3 million a year earlier.
Revenue rose 19% to EUR3.78 billion, with growth coming from
most markets and segments.
Earnings before interest, taxes and amortization, or Ebita, a
figure closely watched by analysts to gauge operational
performance, rose 64% to EUR153 million.
Staffing companies were hit hard by the economic downturn as
companies cut staff in order to reduce their costs. This year has
seen a pickup in demand, although concerns remain. Some analysts
say the recovery may come to a halt in coming months due to the
uncertain economic prospects in the U.S. and Europe.
Randstad shares closed at EUR34.99 Wednesday.
- By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5201;
maarten.vantartwijk@dowjones.com
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