Dutch employment agency reports 40 percent profit growth

28th October 2010, Comments 0 comments

Dutch temp employment agency Randstad, the world's second largest, announced Thursday a 40 percent rise in third quarter net profit and said it looked ahead with "renewed energy and confidence".

The company reported an adjusted net income of 101.6 million euros (140 million dollars) -- up from 77.2 million euros in the previous quarter and 72.5 million euros in the third quarter of last year.

Randstad said revenue improved 16 percent year-on-year to 3.78 billion euros, mainly due to 55 percent growth in the industrial and logistical business segment.

This figure was higher than the 3.68 billion euros forecast by analysts polled by Dow Jones Newswire.

"After the quick pick-up in industrial demand earlier this year, we now also see improvements in clerical and professional segments in many regions," Randstad said.

"In addition, the number of permanent placements is increasing. Efficiency is also still rising. Therefore, we look to the coming quarters with renewed energy and confidence," a statement said.

North America continued a strong recovery with 23 percent growth in the quarter, while Germany led Europe with a 40 percent rise.

The Dutch market, which relies heavily on the services segment of the economy, was still lagging.

Randstad said it expected continued healthy growth in the coming quarter and that it expected to pay a dividend to it shareholders for 2010.

The company, the second largest of its kind in the world, had about 25,500 employees in 44 countries at the end of last year.

© 2010 AFP

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