Randstad sees no sign of double dip recession

Amsterdam: Dutch staffing company Randstad said it was not seeing signs of a double dip in the economy, with companies continuing to hire more staff, notably in the United States, Germany and France.

The world's second-largest jobs company, which generates most of its sales in western Europe and the United States, said in a statement it expected to be able to pay a 2010 dividend and reported a 79 per cent rise in second-quarter earnings.

"We are seeing growth everywhere. Even in Greece we are seeing the usual pattern. We are not seeing signs of a second dip," Randstad Chief Financial Officer Robert-Jan van de Kraats told Reuters.

UK recruiter Michael Page said three weeks ago market conditions remained uncertain in Europe, the Middle East and Africa, while US-based Manpower, which makes the majority of its sales in Europe, said last week it did not see a slowdown.

Possible slowdown

Concerns have risen of a possible slowdown in global economic growth, following a higher-than-expected rise of US jobless benefits claims and a slight moderation of China's second-quarter growth earlier this month.

Companies such as Dutch publisher Wolters Kluwer, French carmaker PSA Peugeot Citroen and electronics group Philips warned earlier this month of challenges in Europe and a tougher economic environment.

Van de Kraats did not rule out a slowdown of growth, but said uncertainty about the recovery was helping push up demand for temporary staffing in markets such as the industrial sector, logistics and administration.

"A reality shock has hit the world. Companies and employees have come to understand that volatility can be much bigger than expected and have a considerable impact on businesses. The necessity to quickly adapt costs has been accepted."

Randstad said it expected to pay a dividend again for 2010, its first since a 1.25 euros per share payout in 2007.

Payments were halted after the takeover of Dutch rival Vedior in 2008 increased debt.

"We want to pay a dividend of 1.25 euros if this is between 30 to 60 per cent of net profit corrected for items such as amortisation of goodwill," Van de Kraats said.

Randstad, whose results will be followed by bigger rival Adecco on August 11, said earnings before interest, taxes, and amortisation and excluding extraordinary items and integration costs (underlying EBITA) reached 119.7 million euros in the second quarter.

Seven analysts had on average forecast an underlying EBITA of 111 million euros. Randstad earned 67 million euros in the same period last year.