Randstad Earnings Drop Over 70%
Randstad has announced its Quarter One results.
Key points first quarter 2009
- Revenue amounted to 3,055.5 million (organic growth amounted to -27% in Q1 2009 and -31% in March)
- EBITA reached 49.2 million (-73%), with the EBITA margin reaching 1.6% (vs. 4.3% pro forma)
- Operating expenses decreased by 19% to 564.7 million backed by natural attrition, synergies and restructuring
- Solid cash generation net debt improved by 195 million to 1.446 million leverage ratio stable at 1.8
Our challenge in this difficult quarter has been to adjust our cost base while preserving and even improving the foundations for our future growth potential, says Ben Noteboom, CEO Randstad. I am touched by the dedication and energy of our people who are doing a great job in adjusting costs and managing cash. They deserve credit for doing a painful job in what is always the slowest quarter of the year, due to seasonal patterns in our business. We make sure that we do not damage our market presence. In many markets, our people are stepping up their commercial activities ensuring no demand is left undiscovered. We are gaining more and more client contracts. The markets of our clients move through violent patterns, but in the medium term, immediately after the downsizing waves, there will be significant demand for flexibility. In the midst of all the turmoil, we are making sure we are prepared for this. The capabilities of our new combined company, with a very strong presence in both staffing and professionals segments, give us an excellent position to be the partner of choice for our present and new clients.