Randstad Profit Up As Staffing Markets Show A Robust Recovery

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

Randstad NV (EU:RAND)
Historical Stock Chart
From Jun 2024 to Jul 2024