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US - Randstad North America revenue down 3% organically

July 25 2013

Randstad Holding NV’s North America revenue fell 3 percent on an organic basis to €944.8 million (US$1.23 billion) in the second quarter. Organic growth excludes the impact of currency, acquisitions, disposals and reclassifications.

The company said second-quarter revenue in its U.S. staffing and inhouse business fell by 3 percent. However, gross profit rose by 6 percent. Randstad’s U.S. professional staffing segment saw revenue contract by 6 percent per working day. The administrative segment and permanent placements continued to perform well, but the termination of a number of contracts in the second half of 2012 continued to impact growth rates.

Revenue remained under pressure in IT and finance — mainly due to lower demand for temporary staffing in the banking and finance segments — but was partly offset by stronger demand for perm placements, especially in IT.

Randstad reported Canadian revenue rose by 1 percent per working day in the second quarter.

Global revenue at Randstad fell 4.8 percent to €4.10 billion (US$5.33 billion) in the second quarter. Revenue fell 13 percent on an organic basis in France and fell by 8 percent on an organic basis in Belgium and Luxembourg. However, revenue rose 6 percent on an organic basis in the rest of the world outside Europe and North America.

Gross margin was 18.2 percent, in line with the second quarter of 2012. Gross margin enhancements in North America remained strong, while gross margin pressure in the Netherlands and Germany eased. In other European countries and in the rest of the world, price and mix effects continued to put pressure on Randstad’s gross margin.

Second-quarter net income rose 72.9 percent to €63.1 million (US$82.1 million) from €36.5 million in the year-ago quarter.

“Efficiency continued to improve in the second quarter,” said CEO Ben Noteboom. “On operational performance, our people did an excellent job delivering more profit on a somewhat lower revenue base.”

Randstad Holding NV
 For the second quarter ended June 30, 2013, compared with the year-ago period. (Not on an organic basis.)

 Revenue: €4.10 billion (US$5.33 billion), -4.8 percent

 Net income: €63.1 million (US$82.1 million), +72.9 percent

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