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Randstad NA Revenue Rises 14%

July 28 2011

Randstad Holding NV, the world’s second-largest staffing firm, reported second-quarter North American revenue rose 14 percent from the year-ago quarter on an organic basis, which excludes the impact of currencies, acquisitions and disposals.

The Netherlands-based company reported second-quarter North American revenue of €482.4 million (US$694.2 million) compared to revenue of €470.3 million in the year-ago quarter.

North American permanent placement fees rose 25 percent organically. Randstad’s combined U.S. staffing and inhouse business grew by 10 percent organically. Meanwhile, organic revenue growth in Randstad’s U.S. professionals businesses was 17 percent, up from 13 percent in the year-ago quarter, driven primarily by information technology, engineering and life sciences. Finance and accounting improved, particularly in permanent placements.

Second-quarter revenue for the full company rose 12.9 percent to €3.92 billion (US$5.63 billion) from €3.47 billion in the second quarter of 2010.

Gross margin narrowed to 18.4 percent in the second quarter from 19.0 percent a year ago.

Randstad posted second-quarter net income of €76.3 million (US$109.8 million), up 36.5 percent from €55.9 million in the year-ago quarter.

The company reported limited financial impact from the earthquake in Japan. The financial impact of the earthquake turned out to be lower than expected as volumes recovered more quickly than anticipated, the company reported.

“This is the fifth consecutive quarter with double-digit growth,” said CEO Ben Noteboom. “Our people have done a good job, with the fastest growth in Germany, France and North America. … Worldwide, the lingering uncertainties in the economy will lead to more interest in flexible solutions, more transitions and mobility on the employment market.”

Randstad last week announced plans to acquire U.S.-based SFN Group for $771 million. SFN posted revenue of $512.2 million in the second quarter.

Randstad Holding NV
For the second quarter ended June 30, 2011, compared with the year-ago quarter
Revenue: €3.92 billion (US$5.63 billion), +12.9 percent
Net income: €76.3 million (US$109.8 million), +36.5 percent

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