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Michael Page gross profit down 32%

April 07, 2009

Difficult economic conditions in the first quarter ate into gross profit and prompted internal staff reductions at Michael Page International PLC. The London-based professional staffing firm announced first-quarter gross profit fell 32.3% year-over-year to GBP95.0 million (US$135.0 million). Further staff reductions are planned for the second quarter.

"As anticipated, the Group generated a higher gross profit in March than in either of the first two months of the quarter, resulting in a first-quarter operating profit in the region of GBP3 million," said Chief Executive Steve Ingham. "However, market conditions continued to weaken during the first quarter of 2009, with the impact of the financial crisis now evident in virtually every market and discipline in which we operate, albeit to varying degrees.

"While we anticipate that our overall cost base and headcount will reduce in the second quarter, in a few markets and disciplines which were the first to slow, we are not planning further headcount reductions," Ingham said.

First-quarter gross profit in the U.S. and Canada fell 49% year-over-year. The U.S. and Canada account for 4% of the company's gross profit. In addition, the company cut headcount in its Americas region by 21%, leaving it with 404 internal workers. The Americas region includes the U.S. and Canada as well as Brazil, Mexico and Argentina.

For the company as a whole, Michael Page cut headcount in the first quarter by 16%, leaving it with 4,134.