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USG Reports on Q1 2011-04-21

USG Reports on Q1 2011-04-21

Dutch staffing firm USG People missed underlying profit expectations on Thursday, blaming it on the poor performance of its main Dutch operations, especially for financial sector and government jobs.

USG is the first major staffing agency to report results, to be followed by bigger U.S. rival Manpower later on Thursday, Dutch rival Randstad next week, and Switzerland's Adecco on May 10.

The Dutch staffing market has been growing slower than expected, partly due to government cost-cutting and financial sector restructuring, weighing on the performance of some staffing agencies.

USG People is Europe's 4th-largest staffing firm by revenue after Adecco, Randstad, and Manpower. It employs administrative and professional workers such as accountants and IT staff.

"Recovery in the private sector was offset by contraction in the public sector and at financial institutions. These sectors form a substantial part of the administrative market segment in the Netherlands, thus delaying growth in these activities," USG said.

The STOXX Europe 600 Industrial Goods and Services sector .SXNP rose 1.7% year-to-date. By contrast shares in USG People have fallen 8%, Randstad is down 1.9%, and Adecco is down 0.5%.

USG reported a 53% increase in first-quarter earnings before interest, tax and amortisation costs, excluding incidental items (recurring EBITA) to 15 million euros, missing even the lowest analyst estimate of 16.3 million euros.

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