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Randstad revenue down 28%, U.S. decline steadies

April 24, 2009

Randstad Holding NV, one of the world's largest staffing firms, announced first-quarter revenue fell 28% year-over-year to euro3.06 billion (US$4.04 billion) on a pro forma basis. First-quarter revenue declined in all the company's geographic regions, but Randstad reported the rate of decline stabilized in the company's U.S. staffing and in-house services businesses.

Randstad's first-quarter North American revenue fell 24% year-over-year to euro365.0 million (US$482.1 million) on a pro forma basis.

First-quarter gross margin narrowed to 20.1% from 20.7% in the year-ago quarter.

Randstad's pro forma reporting includes treating its acquisition of Vedior NV last year as if the companies had been combined in the first quarter of 2008 as well as the first quarter of 2009. Randstad had ranked as the world's third-largest staffing firm prior to its acquisition of Vedior, the world's fourth-largest staffing firm.

However, net loss and net income are not reported on a pro forma basis. Randstad reported a first-quarter loss of euro52.6 million (US$69.5 million) compared with net income of euro75.1 million in the first quarter of 2008.

Randstad said it took a euro53.7 million restructuring charge in the first quarter. The company closed 561 offices in the first quarter, leaving it with 4,672. Randstad reduced headcount as well with average headcount down 10% from the fourth quarter. In addition, the company reported euro8.2 million in integration costs.

Randstad Holding NV
For the first quarter ended March 31, 2009, compared with the same period in the previous year. The revenue number is on a pro forma basis as if Randstad and Vedior had been combined throughout both periods.
Revenue: euro3.06 billion (US$4.04 billion), -28%
Net loss: euro52.6 million (US$69.5 million) vs. net income of euro75.1 million