Q2 results: strong profitability in challenging markets

We are reporting on second quarter performance a month later than usual. Normally, you get to see the results in July. The reason is the consolidation of Vedior into the Randstad Group performance. We show you the numbers on Q2 2007 as a comparison – as if Vedior was then part of Randstad.

So how did we do in challenging markets? Revenue were up 2% overall and up 4% organically – that’s the work you do to grow business with clients. Biggest contributions came from the professionals segments, such as IT in the US, permanent placement in France but also inhouse services in the Netherlands. We have also been able to keep growth in operating expenses down to 3%. That’s another great result, especially as declining markets mean we have to be even more alert to cost control.

Gross profit
Gross profit increased by 4% to € 933.9 million. The gross margin increased by 30 basis points from 20.6% to 20.9%. The temp margin improved by about 10 basis points, reflecting continued focus on pricing. Growth in perm fees added approximately another 10 basis points, while mix shifts and currency effects made up for the remainder.

Growth in the other European countries slowed but remained strong on average. We realized double digit growth in countries such as Italy, Poland, Sweden and Turkey.

Please visit www.randstad.com for detailed information.