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UPDATE 2-USG sees recovery but lack of forecast hits shares

Published 10/28/2009, 07:09 AM
Updated 10/28/2009, 07:12 AM
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* Expects some recovery, stabilisation in rest of '09

* Sees cautious improvement in early cyclical industries

* Q3 underlying opg profit 24 million euros vs 20 million expected

* Shares down 6 percent due to lack of forecast - traders

(Adds CEO, analyst, trader comment, shares)

By Gilbert Kreijger

AMSTERDAM, Oct 28 (Reuters) - Dutch staffing firm USG People NV said it had seen signs of recovery in some markets and expects stabilisation or a slight improvement in business conditions, but shares fell with traders citing a lack of forecast. The Netherlands' second-largest jobs company after Randstad reported a third-quarter profit that beat estimates on Wednesday. It declined to give a forecast but said there was an improvement in some sectors and regions.

Shares in USG People were down 6.1 percent at 11.46 euros by 1018 GMT, underperforming a 3 percent fall of the Amsterdam midcap index.

"They may have said too little about the future, raising uncertainty with investors about potential results and giving selling pressure," said one trader, adding that negative market sentiment was also weighing on the shares.

USG's third-quarter earnings before interest, taxes and amortisation and restructuring costs and some other items (underlying EBITA) were 24 million euros, double the preceding quarter and beating the average forecast of 20 million euros from a Reuters poll.

Analysts at brokerages Petercam and SNS Securities said results were better than expected and they reiterated their "buy" and "accumulate" ratings.

USG Chief Financial Officer and interim Chief Executive Rob Zandbergen said in a statement some markets were not yet recovering but others were.

"In a few regions, especially in the early cyclical industries, it is increasingly looking as if the low point of the cycle was passed in the first six months of 2009," Zandbergen said.

Since January, Dutch staffing sales have shrunk by 15 percent or more on an annual basis, data from Dutch staffing association ABU shows.

British recruitment agency Michael Page saw signs of stabilisation globally, it said three weeks ago.

U.S. rival Manpower, the world's third-largest staffing company by 2008 sales, disappointed investors last week with its fourth-quarter outlook, and said it was difficult to forecast results due to the current economic conditions.

USG's results come ahead of those from Randstad and the world's largest staffing firm Adecco, which report on Thursday and next week respectively. (Editing by John Stonestreet and Jon Loades-Carter)

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