RESULTS: Hudson financials ‘at low end of expectations’
Thu, 3 May 2012
International staffing group Hudson saw revenues of $200.6m (£124m) in the quarter ending 31 March, a decrease of 8.9% in constant currency compared to the same period in the previous year.
Gross margin was $73.2m, down 10.1% in constant currency from the previous period.
This equated to an EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss of $2.2m, compared to a gain of $2.5m in the previous period.
Gross margin increased by 14% in the US, and decreased by 12% and 15% respectively in Asia Pacific and Europe.
US growth was primarily down to recruitment process outsourcing (RPO) strength, the firm reports, with financial services impacting business in the other two regions.
Chairman and chief executive Manuel Marquez says: “Challenging market conditions persisted throughout the first quarter and drove our results to the low end of our expectations.
“After making significant progress in 2011 towards our long-term goals, we have initiated the next phase of our strategic transition. We will take action to accelerate investment in our growth businesses, optimise the Hudson service delivery model, and extract synergies from our back office and business processes. We believe that by taking these actions, we will make 2012 a foundational year in our progress towards achieving our long-term financial and strategic goals."