July 21, 2020 / 6:12 AM / 14 days ago

CORRECTED-UPDATE 1-Randstad reports smaller than expected quarterly sales loss

(Corrects to say drop in sales smaller than expected)

AMSTERDAM, July 21 (Reuters) - Core earnings fell sharply in the second quarter at Randstad Holding NV, one of the largest staffing companies in the world, but sales fell less than analysts had feared as the coronavirus pandemic drastically curtailed demand for temporary workers.

Revenue fell 26% to 4.44 billion euros ($5.08 billion) from 5.96 billion euros in the same period a year earlier, while net income swung to a loss of 57 million euros from a 238 million euro profit.

Analysts had expected second-quarter revenue at 3.91 billion euros and a net loss of 11.7 million euros.

“Trading conditions in the second quarter reached the low point in April when country lockdowns were most intensified,” said CEO Jacques van den Broek.

“Since then, the revenue decline started to gradually ease into May and June in most of our geographies.”

He said the company would focus resources on its existing digital platforms for job seekers and job training.

In the company’s outlook, it noted that the 25% fall in revenue in the quarter had fallen to 21% by June.

“The development of volumes in early July indicate further positive momentum,” it said, adding that it expects to benefit in the third quarter from government support schemes and cost-cutting.

However the company provided no outlook for the rest of 2020.

“Visibility remains very limited, with ongoing high macroeconomic uncertainty and some recent signs of regional lockdowns again,” Van den Broek said. ($1 = 0.8744 euros) (Reporting by Toby Sterling; Editing by Christian Schmollinger and Louise Heavens)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below