Wednesday, specialized staffing firm Robert Half International, Inc. (RHI) reported a plunge in its profit for the first quarter from a year-ago, citing extremely weak labor markets worldwide.
The Park, California-based company's net income for the first quarter plunged to $8.8 million or $0.06 per share from $70.8 million or $0.45 per share in the preceding year quarter.
Analysts polled by Thomson Reuters expected the company to earn $0.06 per share for the quarter.
Total revenues for the quarter fell to $823.3 million from revenues of $1.23 billion in the comparable quarter of last year. The Street anticipated revenues of $844.27 million for the first quarter.
Segment wise, the staffing firm's revenues from accountemps business dropped to $329.4 million form $467.4 million, while OfficeTeam revenue fell to $145.4 million form $219.6 million last year. Robert Half technology business revenue decreased to $83.8 million from $111.2 million, while management resources revenue declined to $114 million from $170 million a year ago. Finance and accounting revenue slipped to $50 million from $15.6 million, and protiviti business revenue dipped to $100.8 million from $142.1 million in the prior year period.
Robert Half reported a first quarter total gross margin of $293.7 million, down from $511 million in the prior year quarter.
Total operating income for the first quarter dropped to $16.7 million from $116.6 million in the year-ago quarter.
Segment wise, operating income from temporary and consultant staffing plummeted to $39.8 million, operating loss from permanent placement staffing was $4.2 million, and risk consulting and internal audit services operating loss was $19 million, compared to a profit last year.
Harold Messmer, chairman and CEO of Robert Half International, commented, "Robert Half International remains in solid financial condition with virtually no debt, and we are confident in our ability to weather this cycle. We also believe the company is in a good position to grow market share as some of our competitors contract their operations."
RHI closed its Wednesday's trading at $23.57, up $1.55 or 7.04% on a volume of 4.5 million shares on the NYSE.
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