Randstad sees profits jump despite sales slowdown
Dutch temporary employment agency Randstad on Thursday published 10 percent jump in net profit year-on-year for the third quarter, despite a "gradual slowdown" in sales compared to 2010.
Net income stood at 79.5 million euros (U$ 111.4 million), while net revenue soared seven percent in organic growth compared to the same time last year to 4.23 billion euros.
Sales were mostly done by Randstad's "inhouse services" branch, which focuses on industry and logistics and showed double digit organic growth of 18 percent, the Amsterdam-based company said.
It added that the net addition of acquisitions of the US-based SFN, concluded on September 2 and Fujistaff in Japan in 2010, was six percent.
But it said sales were slowing down as organic revenue growth per working day "decreased gradually from nine percent in July to just below seven percent in September," compared to 16 percent growth in the same quarter last year.
Randstad, which employs around 26,000 people in 43 countries around the world, added it believed the trend would continue in the fourth quarter.
© 2011 AFP