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Randstad North America Revenue Up 10% Organically

February 16 2012

Randstad Holding NV, the world's second-largest staffing firm, reported fourth-quarter North American revenue rose 10 percent from the year-ago quarter on an organic basis, which excludes the impact of currencies, acquisitions and disposals.

The Netherlands-based company reported fourth-quarter North American revenue of €937.1 million (US$1.21 billion) compared with revenue of €495.6 million in the fourth quarter of 2010. The increase on a nonorganic basis was 89.1 percent. SFN Group, which Randstad acquired in September 2011, contributed €393 million (US$508.9 million) in revenue as growth strengthened.

Full fourth-quarter revenue for SFN Group was $562.9 million, up 2.5 percent from $549.2 million in the year-ago period.

Excluding SFN Group, improvement was driven by continued focus on the administrative segment and permanent placements, Randstad reported. Growth was led by IT, which maintained solid double-digit growth, while in engineering and healthcare growth continued to accelerate. Finance and accounting remained somewhat under pressure but strengthened during the fourth quarter.

Fourth-quarter revenue at Randstad for the full company rose 12.5 percent to €4.38 billion (US$5.67 billion) from €3.89 billion in the fourth quarter of 2010.

Gross margin narrowed to 18.3 percent in the fourth quarter from 18.9 percent in the year-ago period.

Randstad posted fourth-quarter net losses of -€16.5 million (-US$21.4 million), due to   a non-cash impairment charge on goodwill of € 125 million. The company posted net income of €138.5 million in the year-ago period.

For full-year 2011, Randstad's North American revenue rose 36 percent on a nonorganic basis to €2.51 billion (US$3.30 billion), compared to €1.85 billion reported in 2010.

For the company as a whole, revenue rose 14.4 percent to €16.22 billion (US$21.01 billion) in 2011. Full-year gross margin narrowed to 18.2 percent from 18.8 percent in 2010.

Full-year net income fell 38 percent to €179.0 million (US$231.8 million), compared with €288.5 million in 2010.

Randstad Holding NV
For the fourth quarter ended Dec. 31, 2011, compared with the same period in the previous year.
Revenue: €4.38 billion (US$5.67 billion), +12.5 percent
Net loss: €16.5 million (-US$21.4 million), vs. net income of €138.5 million

For the full year ended Dec. 31, 2011, compared with the previous year.
Revenue: €16.22 billion (US$21.01 billion), +14.4 percent
Net income: €179.0 million (US$235.0 million) vs. -38.0 percent

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