Press Release Archive
FOR IMMEDIATE RELEASE
Spherion Corporation Announces Planned Divestment of
International Operations, Including Asia/Pacific Region
Fort Lauderdale, Fla., March 11, 2004 – United States-based Spherion Corporation (NYSE:SFN), today announced plans to divest its international businesses, including its operations in the Asia/Pacific region. Spherion® provides IT staffing and training services through 22 offices in Australia, Hong Kong, New Zealand and Singapore.
Andrea Galloway, president and group managing director of the Asia/Pacific region for Spherion, will continue to manage business operations throughout the region during the proposed sale and transition.
“We remain unwavering in our commitment to provide the highest levels of service that our clients have come to expect and intend to meet all contractual obligations during the transition process,” Galloway commented. “We will conduct the necessary due diligence and take the proper time to find a qualified buyer that is the right fit for our local operations and will carry on the tradition of exceptional service and the provision of highly skilled job candidates.”
Spherion has already signed a letter of agreement (LOA) with ASX-listed EasyCall to sell its technology education division. Under the agreement, EasyCall will purchase Spherion’s 13 training institutes in Australia and New Zealand. Spherion also expects to appoint an investment bank to manage the sale of Spherion’s remaining operations in the region.
The planned divestiture is part of Spherion Corporation’s strategic plan to focus on its core business operations in North America in order to build a stronger and more profitable organization. It will also sell operations in the Netherlands and the United Kingdom.
“After extensive evaluation, we have decided to divest our international businesses. By selling our overseas operations, we will be able to redeploy capital and focus our attention more effectively to meet our goal of profitably growing our business and being a premier provider of staffing and recruitment based services in North America,” stated Roy Krause, Spherion president and chief operating officer. “Despite this shift in strategy, this news does not mean that our clients in the Asia/Pacific region will experience any disruption in the service that our offices provide.”
Spherion Corporation is a leader in the staffing industry in North America, providing value-added staffing, recruiting and workforce solutions. Spherion has helped companies improve their bottom line by efficiently planning, acquiring and optimizing talent since 1946. To learn more, visit www.spherion.com.
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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 temporary 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 strategy; 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; Debt Compliance – Failure to meet certain covenant requirements under our credit facility could impact part or all of our availability to borrow; 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 perform under customer contracts 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.