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North America Is Bright Spot for Randstad

October 25 2012

Randstad Holding NV, the world’s second-largest staffing firm, reported growth in North America and parts of Asia and Latin America, but revenue fell in Europe.

“Our performance in North America and Japan was again solid, but European conditions softened further,” said CEO Ben Noteboom. “In France, business confidence is eroding fast. Many clients in Europe feel the effects of economic uncertainty.”

North America revenue rose 2 percent on an organic basis to €1.00 billion (US$1.29 billion) in the third quarter from the same period in the previous year. Organic growth excludes impact of currency as well as acquisitions and disposals.  However, it does not exclude the impact of Randstad’s acquisition of SFN Group in September 2011, which is included on a pro forma basis in 2011. SFN had ranked as one of the largest staffing firms in North America.

Growth remained stable in North America throughout the quarter, according to the company.  Permanent placement revenue rose by 9 percent.  Randstad reported it has full integrated the staffing business of SFN Group in the third quarter and integration of the professional staffing operations is continuing.

While revenue rose in North America, Randstad’s third-quarter global revenue fell 5 percent on an organic basis to approximately €4.40 billion (US$5.65 billion).

Third-quarter French revenue fell 12 percent on an organic basis to €797.0 million (US$1.02 billion), and Dutch revenue fell 4 percent on an organic basis to €718.5 million (US$923.7 million). France and the Netherlands represent Randstad’s second- and third-largest markets.

Outside of North America and Europe, third-quarter revenue rose 5 percent on an organic basis to €408.0 million (US$524.5 million).

Global third-quarter gross margin was 18.2 percent compared to18.1 percent in the third quarter of 2011.

Randstad’s third-quarter net income fell 13.5 percent to €68.8 million (US$88.4 million) from €79.5 million in the year-ago period.

The company said it is monitoring productivity and efficiency of the whole organization and plans incur restructuring costs in the fourth quarter.

Randstad Holding NV
For the third quarter ended Sept. 30, 2012, compared with the year-ago period.

Revenue: €4.40 billion (US$5.65 billion), +4 percent (-5 percent on an organic basis)
Net income: €68.8 million (US$88.4 million), -13.5 percent

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