chat
expand_more

Chat with our Pricing Wizard

clear

Recruitment Outsourcing Company Sees Revenue Decline

ningcontent Avatarningcontent
January 28, 2011


Despite an increase in recruitment outsourcing (Click here) needs, one company in the industry has seen a significant decrease in revenue.
Spherion, a company that provides various recruiting services, recently announced that its revenue for Q3 fell from $542 million last year to $420 million, a decrease of 22.5 percent.
During the first nine months of this year, the company’s revenue came in at $1.3 billion, which is lower than the $1.7 billion Spherion earned during the same period in 2008.
The company’s earnings before interest, tax, depreciation and amortization during Q3 was $9.2 million, or 2.2 percent of revenues, a decrease from $15.4 million, or 2.8 percent of revenues, last year.
“Our revenues in the third quarter increased nearly 3 percent from the prior quarter as the economy continued to show signs of improvement,” Roy Krause, president and chief executive of Spherion, said. “Additionally, we once again exceeded our 2.0 percent EBITDA target due to focused cost management.
“As the economic recovery takes hold, our focus is now shifting towards growing operating margins through expansion of our higher value services such as recruitment process outsourcing, where we are the industry leader, and professional staffing and solutions, while continuing our focus on operational effectiveness,” he added. “I believe that we are well positioned operationally and strategically to emerge from this tumultuous period with a more balanced mix of business.”
There is somewhat of a bright outlook for the company, as revenues per day during the first three weeks of October were about 5 percent higher than during Q3. However, the current economic environment and the impact of the holiday season make it difficult to predict how revenues will trend throughout the rest of Q4.

Originally posted by joel cheesman

Related Articles

No Related Posts.
View More Articles