Staffing company Randstad makes Q4 profit of $63M

(AP) — Dutch staffing company Randstad Holding NV on Thursday said it made a profit in the fourth quarter, with its U.S. operations reporting growth for the first time in three years.

Net profit for the world's second-largest supplier of temporary employees was €46 million ($62.5 million), against a loss of €233 million a year earlier, when it took a large charge after its acquisition of Vedior NV. Sales fell 19 percent to €3.18 billion.

"Our markets have stabilized and classical recovery patterns are visible," said Chief Executive Ben Noteboom in a statement. "If recovery continues we should do very well."

In the early stages of economic recovery companies often turn to temporary employees rather than adding permanent staff.

Randstad purchased Vedior NV for €3.5 billion in May 2008, making it the second largest staffing company behind Adecco SA of Switzerland and ahead of Manpower Inc. of the U.S.

The company said Thursday that although sales and profits were still down in most regions from a year ago, they improved from the third quarter.

Randstad said its U.S. businesses started to recover in the summer, followed by Britain and then continental Europe.

It said demand for skilled workers by multinationals, "which traditionally move later in the cycle, started to stabilize during Q3 2009 and are recovering more slowly across the board."

It pinpointed mid-November as the moment that its combined U.S. businesses began to expand and those trends have continued so far in 2010. As of mid-February revenue per working day was up 5 percent, Randstad said.