Press Release Archive
FT. LAUDERDALE, Fla.,
The Company estimates diluted earnings per share from operations will be between $0.03 and $0.05 per share for the quarter, exclusive of restructuring and other related charges and a gain on the sale of marketable securities. Comparable Cash EPS (EPS plus after-tax intangible amortization) will be between $0.14 and $0.16 per share. These results are consistent with the low end of the Company’s most recent range of management guidance for the full year 2001. Spherion will release its results for the third quarter after market close on
Spherion President and CEO Cinda A. Hallman commented, “I am pleased with the Company’s progress to date implementing actions related to our business transformation strategy, including optimization of recruitment markets and the expansion of sales resources. Spherion has a strong balance sheet and I remain confident about the long-term outlook for our business, but believe that the impact of the events of September 11th will delay the economic recovery and cause further pressure on our industry. Despite the continued weakness in our operating environment, we remain focused on our transformation initiatives and driving improvements in predictability, productivity and profitability.”
The Company is currently implementing restructuring plans for optimization of field operations, primarily within the recruitment business. This initiative is part of the Company’s business transformation strategy announced in August 2001 and is designed to build dominance in certain strategic markets, while exiting others. As a result, Spherion will record a restructuring charge between $30 million and $35 million, on a pre-tax basis, including employee severance and facility closure costs for the reorganization of operations, of which approximately $6 million will be recorded in the fourth quarter of 2001. Approximately 150 offices are to be consolidated, franchised or sold, impacting approximately 500 staff, in various regions throughout the and internationally. As part of the optimization effort, the Company also expects to add up to 65 sales resources in key markets. Principally all of the restructuring actions are expected to be complete during the fourth quarter 2001.
The Company will also record a primarily non-cash charge of $40 million to $45 million, on a pre-tax basis, related to the write-down of assets, including goodwill balances, to net realizable value for businesses determined to be non-strategic and obsolete software. As part of the Company’s business transformation, it will significantly reorganize or divest the following operations: the Stratford Group, the Company’s executive search operation; JobOptions.com, an Internet recruitment solutions provider; and the Company’s commercial staffing operations in .
Spherion Corporation provides Recruitment, Outsourcing and Technology services. Founded in 1946, with operations in the ,
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 the Company’s ability to implement its new corporate strategy, 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.