Apr 26, 2008
Acting World
Randstad, which is being acquired its competitor Vedior to create the second group of Acting World, announced a net profit up slightly in the first quarter and foresees a slow growth of its turnover, a consequence of general economic slowdown.
Net earnings rose by 3% to 73.3 million in first quarter (Reuters consensus: 75 million euros).
Vedior has announced an increase of 5% of its net profit in first quarter to 46.9 million euros (Reuters consensus: 48 million euros), thanks to the strength of its main market, France.
* TURNOVER. It grew by 6% in the first quarter against 9% in the fourth quarter of 2007.
* OPA.
Randstad offers 9.50 euros and 0.32759 per share Vedior share, valuing the latter at 3.1 billion euros. The operation has already been endorsed by the European Union and shareholders.
* BACKGROUND.
Randstad produces 12% of its C.A. in North America and said that the market remains difficult. The Acting is very subject to economic conditions and, during digging, companies tend to rely less on temporary staff.
Last week the U.S. competitor Manpower reported a sharp decline in operating income for its activities in the USA but the opposite result of a sharp rise in international markets. Adecco, the first group of interim world must publish its results on May 6.
* FORECASTS.
The group believes that the trend of weaker growth will continue in the second quarter. "There is no reason for it to go better," said Reuters chief financial officer Robert Jan van Kraat.
Randstad anticipates for the second quarter gross operating surplus (EBITDA or EBITDA) at least equal to that of 130.9 million euros reached a year ago. This projection does not include the contribution of Vedior.
According to its chief financial officer, Randstad is very interested in small acquisitions in Japan and Germany but not in the quarters ahead.
* ANALYSTS.
"It is clear that markets Randstad continue to falter," says Frank van Wijk, an analyst at SNS Securities.
"The prospect is reassuring," said Marc Zwartsenburg, an analyst with ING.
by erectusplus at 10:34 PM |
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