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UPDATE 1-Randstad continues to see strong demand for workers

Published 04/28/2011, 02:04 AM
Updated 04/28/2011, 02:08 AM
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* Q1 underlying EBITA 108.7 million euros, vs poll 112 mln

* Govt sector demand continues to impact Dutch, UK business

* Sees Q2 EBITA impact of up to 5 million euros due in Japan

(Adds detail)

AMSTERDAM, April 28 (Reuters) - Dutch staffing firm Randstad , the world's second-largest, continued to see strong demand for workers, especially in Germany and France, and for the administrative sector.

The staffing sector is seen as a barometer for economic health because companies tend to hire temporary staff at the beginning of an economic recovery when most businesses are reluctant to add their permanent headcount.

Randstad, whose results will be followed by the world's largest staffing firm Adecco on May 10, said in statement organic sales growth in France and Germany was 22 percent and 29 percent respectively.

"The trends that were visible in Q1 2011 have continued into April," Randstad said.

U.S. rival Manpower, which makes most of its sales in Europe, last week reported a 24 percent sales growth and better-than-expected in first-quarter profit, citing strength of European and emerging markets.

First-quarter earnings before interest, taxes, and amortisation and exceptional items (underlying EBITA) was up 44 percent to 108.7 million euros, comparing to the average expectation of 112 million euros, in a Reuters poll of seven analyst.

It expects an EBITA impact of up to 5 million euros in the second quarter due to the earthquake in Japan, the company said. (Reporting by Gilbert Kreijger)

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