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Randstad North American Revenue Rises

April 28 2011

Randstad Holding NV, the world’s second-largest staffing firm, reported first-quarter North American revenue rose 19 percent from the year-ago quarter on an organic basis, which excludes the impact of currencies, acquisitions and disposals.

The Netherlands-based company reported first-quarter North American revenue of euro476.1 million (US$671.2 million) compared to revenue of euro389.6 million in the year-ago quarter.

Direct hire fees in North America rose 14 percent organically. The demand for temporary labor remained strong in the United States, according to Randstad. The company’s U.S. staffing and in-house business rose by 21 percent organically.

In Randstad’s U.S. professional staffing business, revenue rose 16 percent on an organic basis compared to growth of 19 percent in the fourth quarter. Information technology, engineering and life sciences were the main drivers of growth; however, finance and accounting was slow, especially in direct hire, the company reported.

First-quarter revenue at Randstad for the full company rose 22 percent (on a nonorganic basis) to euro3.70 billion (US$5.22 billion) from euro3.04 billion in the first quarter of 2010.

Gross margin narrowed to 18.1 percent in the first quarter from 18.9 percent a year ago.

Randstad posted first-quarter net income of euro39.7 million (US$56.0 million), up 82 percent (on a nonorganic basis) from euro21.8 million in the year-ago quarter.

The company reported limited financial impact from the earthquake in Japan. All of the company’s corporate employees in Japan are safe, though one staffing employee remains unaccounted for. Several outlets near the epicenter and in the Fukushima area were temporarily closed. They have all since been reopened. The company expects an EBITA impact of up to euro5 million in the second quarter.

For more on Randstad’s full results, see the European version of the Staffing Industry Daily News by clicking here.

Randstad Holding NV
For the first quarter ended March 31, 2011, compared with the same period last year.
Revenue: euro3.70 billion (US$5.22 billion), +22 percent
Net income: euro39.7 million (US$56.0 million), +82 percent

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