Dutch recruiter Randstad NV (RAND.AE)swung to a net loss in the fourth quarter, in part due to a charge on its takeover of rival Vedior in 2008, as demand for both white and blue collar workers declined.

The world's largest employment agency by sales after Switzerland-based Adecco SA (ADEN.VX), said that visibility remained low for the first quarter of 2009, and with revenue rapidly decelerating it would even be challenging to maintain targets for profit margins typical in downturns.

"The unprecedented fall in demand in Q4 2008 and January 2009 reflects the major economic difficulties our clients currently face", Randstad CEO Ben Noteboom said in a statement.

The employment agency posted a net loss of EUR233 million from a net profit of EUR118.5 million a year ago.

Revenue rose 63% to EUR3.96 billion from EUR2.43 billion, boosted by the acquisition of the Vedior businesses which were consolidated from May last year. Stripping out that acquisition, revenue decreased 14%.

The company said that the contraction in its business started in September and has accelerated since October. Rival Adecco's sales fell 6% in the third quarter due to declining demand, and it said it wouldn't meet its 2009 forecast. The company releases fourth quarter and full year 2008 earnings March 4.

In the fourth quarter, Randstad's revenue fell sharply in all its markets, especially France, the U.K. and Southern Europe. Its staffing and in-house services were hit hardest, while its healthcare and education divisions, which are less affected by the economy, maintained growth.

The slowdown gathered pace in January, Randstad said. For example, while revenue declined 10% in October 2008, revenue per working day decreased by about 24% in January 2009.

The downturn is taking a toll on jobs in the 16 countries now sharing the euro, with the European Commission expecting the euro-zone unemployment rate will climb to 9.3% this year from 7.5% last year. In France, 90,200 workers lost their jobs in January, the largest ever monthly jump. In the U.K. number of people claiming unemployment benefits rose 73,800 last month after increasing a revised 79,900 in December.

Randstad said it booked a EUR500 goodwill impairment on its Vedior business, the integration of which is on track, and expects to book an extra EUR25 million restructuring charge in the first quarter for its French operations.

Randstad acquired Dutch rival Vedior in May 2008 in a EUR3.2 billion deal.

Randstad Chief Financial Officer Robert-Jan van de Kraats told Dow Jones Newswires that the EUR500 million impairment was based on a worst-case scenario for the staffing sector in coming years.

Analysts said Randstad's results were broadly in line with expectations, even though revenues declined faster than expected. Both rate Randstad at hold.

Separately, specialist U.K. recruitment company Hays PLC (HAS.LN), said demand for permanent placements was continuing to weaken across all regions, though temporary placements were proving more resilient. The company's net profit fell 20.25% in the fiscal first-half year, which ended Dec. 31 to 70.6 million pounds (EUR79.54) from GBP84.9 million the previous year.

 
   Company Web Site: www.randstad.com 
 
   -By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5201; maarten.vantartwijk@dowjones.com