Press Release Archive
Spherion President and CEO Cinda A. Hallman commented, “Our results for the first quarter were in-line with our expectations and reflect the seasonally lower first quarter revenues consistent with prior years. One bright spot in this difficult environment continues to be our professional recruiting business that generated growth on a sequential quarter and year over year basis. I am also pleased with our continued ability to manage costs, but place the highest priority on profitable growth throughout the Company.”
The Company completed the sale of Saratoga Institute, Inc. in the first quarter and the sale of the technology consulting operation in the in early April. These transactions represent the disposal of all businesses classified as discontinued operations.
In connection with a three-year old agreement, the Company completed the purchase of an 85% interest in its Canadian franchise operation in early April. The Company paid $21.6 million, including the assumption of debt. The Canadian operations generated approximately $60 million in revenues in 2002 and will be reported as part of the Recruitment segment in future periods. This transaction is expected to be neutral to earnings for the balance of 2003.
Including the results of the Canadian operations, the Company currently anticipates revenue for the second quarter 2003 to be between $500-$520 million and results from continuing operations to be between ($0.02) and ($0.07) per share. This guidance assumes a 30% effective tax rate.
Hallman added, “We continue to focus on improving our sales effectiveness in staffing and executing against our plans to improve the competitiveness of our field and corporate infrastructure. While near-term market conditions remain soft, we expect to maintain our discipline on cost containment and further productivity improvements.”
Spherion Corporation provides recruitment, technology and outsourcing services. Founded in 1946, with operations 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: Competition - our business operates in highly competitive markets with low barriers to entry; Economic conditions - a significant economic downturn could result in our clients using fewer flexible employees or the loss or bankruptcy of a significant client could materially adversely affect our business results; Changing market conditions - our business is dependent upon the availability of qualified personnel; Corporate strategy - we may not achieve the intended effect of our Business Transformation Strategy; Technology demand – lack of client investments in new technology may result in reduced demand for our Technology services; Technology Investments – our investment in technology initiatives may not yield their intended results; Tax filings – regulatory challenges to our tax filing positions could result in additional taxes; Credit Rating – further reduction in the Company’s credit rating may affect our ability to borrow and increase future borrowing costs; Litigation - we are a defendant in a variety of litigation and other actions from time to time and we may be exposed to employment–related claims and costs; Other - government regulation may increase our costs; business risks associated with international operations could make those operations more costly; failure or inability to complete our outsourcing projects could result in damage to our reputation and give rise to legal claims; managing or integrating any future acquisitions may strain our resources, and certain contracts contain termination provisions and pricing risks. These and additional factors discussed in this release and in Spherion’s filings with the Securities and Exchange Commission could cause the Company’s actual results to differ materially from any projections contained in this release.