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USG People - Fourth-quarter and full-year 2011 results

USG People - Fourth-quarter and full-year 2011 results

Sharp cost reductions, limited revenue decline and strengthened balance sheet 

Fourth-quarter 2011 highlights

                        

Revenue totalled &euro 795 million revenue per working day was 3% lower than in the fourth quarter last year

The underlying gross margin improved to 21.3% (Q1: 21.2%, Q2: 21.0%, Q3: 20.7%)

Underlying operating expenses were 6% lower than in the fourth quarter of 2010

Additional cost savings of &euro 23 million to take effect from 2012

Underlying EBITA equalled &euro 26 million, EBITA margin: 3.3% (Q4 2010: &euro 32 million, EBITA margin: 3.8%) EBITA margin in the Netherlands developed favourably from 4.8% to 5.3%

Reported net income of -&euro 37 million was negative largely due to a non-cash impairment of assets in Spain and cost cutting measures

Net bank debt declined compared to the previous quarter by &euro 76 million to &euro 62.3 million as a result of a strong cash flow the Leverage Ratio improved to 1.7 Senior Leverage Ratio equalled 0.6

2011 highlights

                        

Revenue rose to &euro 3.245 million and was 5% higher than in 2010

The underlying gross result improved to &euro 683 million (2010: &euro 680 million) and the gross margin equalled 21.0% (2010: 21.9%)

Underlying operating expenses amounted to &euro 560 million, unchanged from 2010

Costs were structurally reduced by &euro 50 million on an annual basis as a result of optimisations

Underlying EBITA increased to &euro 96 million, EBITA margin: 3.0% (2010: EBITA of &euro 93 million, EBITA margin: 3.0%)

Reported net income of -&euro 40 million was negative largely due to a non-cash impairment on the assets in Spain and cost cutting measures

Distribution of dividend to continue proposed dividend of &euro 0.17 per share (2010: &euro 0.16 per share)

"In 2011 we laid a solid basis for the future of USG People,” said Rob Zandbergen, CEO of USG People. “Now that we have redesigned our strategy, we are adapting our organisation accordingly and are focusing on providing excellent and efficient services through international governance by brand. This will create new commercial dynamics and new synergies across borders. In 2011 we implemented a number of important optimisation measures which have reduced our cost level by &euro 50 million. Our debt position continued to improve in the fourth quarter due to a positive cash flow. The Leverage Ratio including subordinated loans equalled 1.7, which is in line with our strategic target, as a result of which we will distribute a dividend of &euro 0.17 per share for 2011. We aim to maintain continuity in the distribution of dividend.”

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