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81% Drop At Dutch Leader

81% Drop At Dutch Leader

Dutch staffing company USG People has been hit by dwindling demand, reporting an 81% drop in second-quarter operating income and said it did not expect a significant market improvement in the second half.

Earnings before interest, taxes and amortisation (EBITA), which excludes restructuring and other costs, was 12 million, compared with a forecast for 9.8 million.

"We saw some stabilisation in the decline in revenue in the last few months," Rob Zandbergen, finance director and interim chief executive, said in a statement on Friday. The company did not provide a financial outlook for the second half.

The Almere, Netherlands-based company reported a net loss of 6 million compared with an expected 3.9 million loss. Adjusted for restructuring and interest rate derivative expenses, USG People said it had a profit of 1 million. Revenue fell 31% to 722 million.

The second-largest jobs company in the Netherlands has already announced that chief executive Ron Icke was resigning due to differences in opinion over strategy and Zandbergen would take over on an interim basis. With monthly staffing sales down by double digits from last year (22% in June) USG has renegotiated debt terms to maintain its financial strength while cutting costs.

USG People said its restructuring efforts would translate into 75 million in annual cost savings.

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