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View All NewsRandstad expects gradual recovery in Q3, no acceleration of growth
Randstad Holding nv, the world’s second-largest staffing firm and third-largest U.S. staffing firm, reported a gradual recovery is expected to continue in the third quarter but no acceleration of growth.
Revenue at Randstad rose 4 percent in the second quarter to €4.27 billion (US$5.82 billion). On an organic basis, growth was 5 percent. The company reported North America returned to growth in the second quarter, although its Canadian operations remain under pressure. It also noted a gradual recovery in most European countries while France and Germany are most challenging.
Quote
“Our markets continued their gradual recovery,” said CEO Jacques van den Broek. “The Inhouse and Sourceright businesses in particular enjoyed good growth. Both are good examples of solutions that help our clients with their total talent architecture. Our people did very well in growing our business in U.S. staffing, Poland, Italy, Switzerland, and in China. The combination of their diligent execution and entrepreneurship pays off. We have also made good progress in the Netherlands where we returned to growth. Our strategic focus on permanent placements returned the highest level of fees since Q4 2008. With a continued focus on efficiency improvements, and a keen eye for growth opportunities and innovation, we face the future with confidence.”
Revenue
Q2 2014 (€millions) | Q2 2013 (€millions) | % growth | % organic* | Q2 2014 (USD$millions) | |
Revenue | € 4,268.1 | € 4,095.7 | 4% | 5% | $5,823.9 |
* Organic change is measured excluding the impact of currencies, acquisitions, disposals and reclassifications. For revenue, the organic change has been adjusted for the number of working days. When calculating growth, the USG activites are included on a pro gorma basis and there not excluded as acquisition effect. |
Revenue by geography
Q2 2014 (€millions) | Q2 2013 (€millions) | % growth | % organic* | Q2 2014 (USD$millions) | |
North America | € 910.9 | € 944.8 | -4% | 2% | $1,242.9 |
France | € 719.3 | € 728.0 | -1% | -1% | $981.5 |
Netherlands | € 677.8 | € 669.8 | 1% | 0% | $924.9 |
Germany | € 479.4 | € 464.0 | 3% | 5% | $654.2 |
Belgium & Luxembourg | € 311.0 | € 295.6 | 5% | 5% | $424.4 |
United Kingdom | € 203.8 | € 192.8 | 6% | 3% | $278.1 |
Iberia | € 270.5 | € 196.6 | 38% | 12% | $369.1 |
Other European countries | € 342.1 | € 238.4 | 43% | 20% | $466.8 |
Rest of the world | € 353.3 | € 365.7 | -3% | 13% | $482.1 |
* Organic change is measured excluding the impact of currencies, acquisitions, disposals and reclassifications. For revenue, the organic change has been adjusted for the number of working days. When calculating growth, the USG activites are included on a pro gorma basis and there not excluded as acquisition effect. |
North America
- Combined U.S. business grew 3 percent. Canada remains under pressure.
- U.S. staffing and inhouse businesses grew 6 percent per working day driven by manufacturing and logistics.
- U.S. professionals business contracted 2 percent, but pharma and engineering strengthened.
- Randstad Sourceright spend under management grew by 43 percent and three MSP programs were added.
- Canada revenue fell 4 percent mainly because of lower temp revenue. Market conditions remain challenging.
France
- Growth in industrial and automotive segments offset by lower demand in logistics, finance, IT and the public sector.
- Branch rationalization nearing completion.
Germany
- German market is recovering at a slower pace than expected.
- Wage cost increases and other regulatory changes over the last two years have impacted demand for temporary labor.
Iberia
- Integration process of USG activities has been completed in Spain.
- Spanish revenue grew by 11 percent. Portuguese revenue grew by 14 percent.
Other European countries
- Driven by good performance in Italy, Poland and Austria.
Rest of world
- Growth held up in Asia and Australia while Latin America accelerated.
- In Japan, revenue grew by 10 percent.
- China grew by 67 percent.
Revenue by business line
Q2 2014 (€millions) | Q2 2013 (€millions) | % growth | % organic* | Q2 2014 (USD$millions) | |
Staffing | € 2,524.9 | € 2,477.8 | 2% | 1% | $3,445.3 |
Inhouses Services | € 896.6 | € 776.2 | 16% | 16% | $1,223.4 |
Professionals | € 846.6 | € 841.7 | 1% | 4% | $1,155.2 |
* Organic change is measured excluding the impact of currencies, acquisitions, disposals and reclassifications. For revenue, the organic change has been adjusted for the number of working days. When calculating growth, the USG activites are included on a pro gorma basis and there not excluded as acquisition effect. |
Gross margin
Q2 2014 | Q2 2013 | |
Gross margin | 18.4% | 18.2% |
Operating profit
Q2 2014 (€millions) | Q2 2013 (€millions) | % growth | Q2 2014 (USD$millions) | |
Operating profit | € 137.2 | € 100.9 | 36.0% | $187.2 |
Net income
Q2 2014 (€millions) | Q2 2013 (€millions) | % growth | Q2 2014 (USD$millions) | |
Net income | € 94.1 | € 63.1 | 49.1% | $128.4 |
Share price and market cap
Shares in Randstad fell 0.08 percent to €37.07. The company has a market cap of €6.57 billion.