($1 = 0.9051 euros)
(Reporting by Romolo Tosiani; Editing by Christian
Schmollinger, Sherry Jacob-Phillips and Sharon Singleton)
(Adds CEO, CFO quotes, details)
By Romolo Tosiani
April 25 (Reuters) - Dutch recruitment firm Randstad reported better-than-expected first-quarter core
earnings on Tuesday, despite a slowdown in hiring by companies.
The performance of staffing firms is seen as a bellwether
for broader economic activity as companies' appetite for hiring
indicates confidence in the economy.
"So it's less hiring but still good activity," CEO Sander
van 't Noordende told Reuters.
Van 't Noordende added the company saw a good performance in
permanent employment in Europe but also in the U.S., despite
that business being down it's still at a level that is beyond
pre-pandemic."
The group's underlying earnings before interest, taxes and
amortisation (EBITA) were down 9% at 266 million euros ($293.90
million), but above the 260 million euros forecast in a
company-compiled consensus.
The "macro economic environment remained challenging across
our markets, which translated into lower hiring activities from
our clients," the firm said, adding that this trend continued
into early-April.
Jefferies said in a note that organic revenue estimates
could move down as comments on April, suggest a 5-6% organic
revenue growth decline in the second quarter, below consensus
for a 4% decline.
The stock was down 2.4% by 0706 GMT.
The company said organic revenue per working day declined by
4.2%, with North America down 10%, while Northern Europe slipped
6%. The Asia Pacific region was a bright spot with revenue up
4%.
Weakness in North America was mainly driven by an overall
softening of demand in sectors such as manufacturing,
transportation and distribution, along with administrative
roles, Chief Financial Officer Jorge Vazquez told Reuters.
Peers PageGroup and Hays flagged slower
hiring due to weakness in the permanent recruitment market as
employers were turning to interim hires to ride out market
uncertainty amid a tough economic outlook.
"The economy is not in a recession, it's not in great shape
either," Van 't Noordende said, adding the key question is
whether the central banks will continue to raise interest rates.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.