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One-time charges hit Vedior Q4 bottom line

February 07 2008

Vedior NV reported a 9% increase in fourth-quarter worldwide revenue to euro2.17 billion (US$3.19 billion). Net income, however, fell to euro33.2 million (US$48.9 million), down 51.7% from euro56.0 million in the fourth quarter of 2006, due to one-time charges.

The charges included a euro25.0 million (US$36.8 million) reserve for a French competition investigation, the company reported. The French probe into possible information sharing also includes Adecco SA and Manpower Inc., according to previous reports.

Vedior also said the charges include a settlement with the Dutch Shareholders Association, the VEB, to pay euro4.25 million (US$6.3 million) to shareholders who sold shares on the morning of Nov. 30 prior to the formal announcement that Randstad Holding NV was in talks to buy Vedior. Shares in Vedior surged that day prior to the announcement and prompted Dutch authorities to temporarily halt their trading.

Fourth-quarter net income at the Netherlands-based company would have risen by 22.7% excluding one-time charges.

Fourth-quarter gross margin improved to 19.8% in the fourth quarter of 2007 from 19.6% in the same period last year.

For its U.S. business, Vedior said revenue rose 2% to euro176.4 million (US$259.8 million). However, revenue fell 1% on an organic basis, excluding the effects of currency conversion, acquisitions, and sales of businesses. Vedior cited the cyclical nature of its U.S. legal business and lower results in its traditional business, but said its healthcare segment posted improved results.

Full-year 2007 revenue rose 10% to euro8.43 billion (US$12.42 billion) from euro7.66 billion in 2006. Gross margin improved to 20.6% from 18.7%.

Net income rose 26.9% to euro236.5 million (US$348.3 million) in 2007, thanks to a French tax break that more than offset other non-recurring items.

Vedior NV
For the fourth quarter ended Dec. 31, 2007, compared with the same period in 2006.
Revenue: euro2.17 billion (US$3.19 billion), +9%
Net income: euro33.2 million (US$48.9 million), -51.7%

For the 2007 fiscal year ended Dec. 31, 2007, compared with the previous year.
Revenue: euro8.43 billion (US$12.42 billion), +10%
Net income: euro236.5 million (US$348.3 million), +26.9%

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