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Randstad profit up, but North America revenue slips, US pro changes

October 31 2013

Randstad Holding NV reported global revenue slipped even as net income jumped 22 percent. In North America, revenue fell in the third-quarter as the firm focused on profit growth.

The world’s second-largest staffing company also announced initiatives to improve performance in its U.S. professional staffing business as well as changes in management, including the departure of Dan Foley, president of Randstad US, Professionals.

North America revenue totaled €925.4 million (US$1.25 billion). North America revenue was down 8 percent year over year, but the decline was 3 percent on an organic basis — which excludes the impact of currencies, acquisitions, disposals and reclassifications as well as adjusts for working days.

Randstad reported North America gross profit rose 2 percent from the year-ago quarter when normalized for negative currency effects. Perm placement fees rose by 6 percent in North America.

In Randstad’s North America staffing segment (which includes temporary staffing as well as human resources solutions such as RPO and MSP) revenue fell 8 percent. In the firm’s inhouse segment, where the firm works on site at clients, North America revenue rose by 10 percent.

North America professional staffing revenue contracted by 1 percent mainly as a result of lower demand in the banking and finance segment, the company said.

“We are implementing various other initiatives to improve the performance across our Professionals businesses, and we have changed our management structure,” the company wrote in a press release. “As a result of that, Dan Foley left the organization. We are confident that the combination of these initiatives will ensure profitable market share gains.”

Foley appeared on the Staffing 100.

Randstad’s third-quarter global revenue fell 1 percent to €4.36 billion (US$5.90 billion). Third-quarter gross margin of 18.2 percent was unchanged from the year-ago quarter.

Net income jumped 22 percent to €83.8 million (US$113.3 million).

To see a full report on Randstad’s global operations, click here.

Randstad Holding NV
For the third quarter ended Sept. 30, 2013, compared with the same period last year.
Revenue: €4.36 billion (US$5.90 billion), -1 percent
Net income: €83.8 million (US$113.3 million), +22 percent

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