Randstad Holding NV Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; provides earnings guidance for the fourth quarter and effective tax rate guidance for the year 2017
October 23, 2017
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Randstad Holding NV reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported that Revenues were 5,871.9 million compared to 5,349.3 million a year ago. Operating profit was 227.0 million compared to 243.3 million a year ago. Income before taxes was 217.7 million compared to 238.9 million a year ago. Net income attributable to holders of ordinary shares company was 162.1 million or 0.88 per basic and diluted share compared to 173.6 million or 0.95 per basic and diluted share a year ago. Net cash flow from operating activities was 199.1 million compared to 226.7 million a year ago. Additions in property, plant and equipment was 17.3 million compared to 19.1 million a year ago. Free cash flow was 177.5 million compared to 199.7 million a year ago. Adjusted net income for holders of ordinary shares was 201.9 million compared to 192.5 million a year ago. Net debt was 1,388.9 million compared to 561.3 million a year ago. EBITA, underlying was 287.5 million compared to 270.5 million a year ago. EBITA was 260.6 million compared to 259.6 million a year ago. Diluted earnings per ordinary share, underlying was 1.10 compared to 1.05 a year ago.
For the nine months, the company reported that Revenues were 17,294.9 million compared to 15,158.9 million a year ago. Operating profit was 597.4 million compared to 592.7 million a year ago. Income before taxes was 578.0 million compared to 588.6 million a year ago. Net income attributable to holders of ordinary shares company was 424.2 million or 2.31 diluted per share compared to 426.1 million or 2.32 diluted per share a year ago. Net cash flow from operating activities was 264.4 million compared to 314.5 million a year ago. Additions in property, plant and equipment was 40.3 million compared to 40.6 million a year ago. Free cash flow was 200.3 million compared to 252.4 million a year ago. Adjusted net income for holders of ordinary shares was 531.0 million compared to 486.2 million a year ago. EBITA, underlying was 1,025.9 million compared to 923.8 million a year ago. EBITA was 923.7 million compared to 894.6 million a year ago. Diluted earnings per ordinary share, underlying was 3.99 compared to 3.70 a year ago.
For the fourth quarter, gross margin is expected to be stable sequentially, and operating expenses are expected to be stable sequentially.
For 2017, the company continue to expect an effective tax rate before amortization and impairment of acquisition-related intangibles and goodwill, integration costs, and one-offs of between 24% and 27%.
Randstad N.V. is the world's No. 1 of human resources services. Net sales break down by activity as follows:
- generalist staff placement outside the classic sectors (45.4%): primarily administrative, light industry, logistics staff, etc.;
- generalist staff placement from onsite agencies (25.3%): primarily for clients in the consumer goods, automotive, life sciences and other industries;
- specialized staff placement (23.8%): primarily high-level and experienced professionals in the fields of IT, engineering, business, health, etc. In addition, the group offers services for the permanent staff of its clients (outplacement services, reintegration and salary management);
- other (5.5%).
At the end of 2023, the group had 2,761 branches worldwide.
Net sales are distributed geographically as follows: the Netherlands (12.7%), the United States (18.8%), France (15.1%), Italy (8.5%), Germany (7.4%), Belgium (6%), Spain (5%), Australia (4.6%), the United Kingdom (4.3%), Japan (3.2%), Canada (2.3%), Switzerland (1.9%), India (1.5%), Portugal (1.3%), Poland (1.2%), Sweden (1.2%) and other (5%).
Randstad Holding NV Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; provides earnings guidance for the fourth quarter and effective tax rate guidance for the year 2017