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Randstad North America Revenue Up 9% Organically

April 26 2012

Randstad Holding NV’s first-quarter North America revenue rose 9 percent on an organic basis to €957.3 million (US$1.28 billion) when compared to the same period last year. The company had acquired one of the largest U.S.-based staffing firms, SFN Group, in September 2011. On a nonorganic basis, Randstad’s North America revenue jumped 101 percent.

Randstad, which ranks as the world’s second-largest staffing firm, cited strong performance in North America with permanent placement fees up 16 percent on an organic basis. It also reported strong growth in its U.S. staffing and professionals business lines, but said growth in Canada softened.

The company is integrating SFN into its operations. The first branches have merged and SFN’s back office activities are being transferred to Randstad with the process slated to end in the third quarter. Randstad reported €6.4 million (US$8.5 million) in integration costs for the first quarter, mainly related to severance costs, rebranding, closing of offices and costs associated with IT integration. Randstad had 1,074 outlets in North America at the end of the first quarter compared to 1,089 outlets at the end of the fourth quarter of 2011. Randstad said integration of its professional business lines should begin in the third quarter.

Global first-quarter revenue at Randstad rose 12 percent, or 1 percent on an organic basis, to €4.15 billion (US$5.54 billion).

Global first-quarter gross margin narrowed to 18.0 percent from 18.1 percent in the year-ago quarter.

“In North America, we continue to see excellent performance across the board,” said CEO Ben Noteboom. “Our businesses in Asia-Pacific and Latin America show growth, while in Europe the situation remains rather uncertain. European performance in the first quarter was mixed, although it ended with a slightly upward trend. This could be encouraging, but it is too early to draw any major conclusions.”

Randstad’s first-quarter net income fell 27.5 percent to €28.8 million (US$38.4 million) from €39.7 million in the year-ago period.

Randstad Holding NV
For the first quarter ended March 31, 2012, compared with the same period in the previous year.
Revenue: €4.15 billion (US$5.54 billion), +12 percent
Net income: €28.8 million (US$38.4 million), -27.5 percent

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