Press Release Archive
The Company estimates diluted earnings per share from operations will be between $.15 and $.18 per share for the quarter, exclusive of restructuring and other charges and gains in foreign currency hedging the sale of its Michael Page subsidiary. The Company expects to generate first quarter revenue of $850 million to $855 million. Exclusive of Michael Page, revenue decreased approximately 8% from the fourth quarter of 2000, which is slightly greater than historical, seasonal declines. The Company will announce final first quarter results on
Cinda A. Hallman, newly appointed president and CEO of Spherion commented, “The continued slowing of the economy negatively impacted revenue in the first quarter, resulting in weaker segment operating margins in each of Spherion’s three operating segments. The slowing economy has most significantly impacted our commercial staffing business, and to a lesser extent, the IT and Professional Services segments. Management has acted quickly to reduce headcount and expenses and consolidate under performing operations. I will take the next sixty to ninety days to work with the management team reviewing our operations and continuing to define our strategic focus. During that period, we will continue to aggressively manage expenses and maximize new business opportunities.”
As previously announced, the Company will record a restructuring charge of approximately $29 million in the first quarter of 2001 as a result of its review of corporate and operating units to align cost structures with current business volumes. The charge reflects a substantially completed reduction in the workforce of 700 previously notified employees, including corporate and field staff and underutilized IT consultants, and the consolidation of approximately 100 field offices currently in progress. The charge also includes the severance package of the Company’s former CEO. Additionally, the Company will record approximately $34 million of non-cash goodwill impairment charges in the first quarter.
The Company also recently completed the initial public offering of shares of Michael Page International plc, disposing of 100% of the Company’s interest. Including the over-allotment option exercised by the underwriters, the Company’s proceeds were approximately $710 million, net of taxes and expenses. By the end of April, the Company anticipates reducing its debt balance to approximately $255 million, including $207 million of subordinated notes. In addition, depending on economic conditions, Spherion will continue to analyze the most appropriate use of the remaining proceeds, including share repurchases and additional debt reductions.
Spherion Corporation is a human capital management company, founded in 1946, with company headquarters in
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. Factors that could cause future results to differ from current expectations include risks associated with acquisitions, competition, changing market and economic conditions, currency fluctuations and additional factors discussed in this release and in Spherion’s filings with the Securities and Exchange Commission. The Company’s actual results may differ materially from any projections contained in this release.