MPS Group 1Q Profit Drops 92 Percent

JACKSONVILLE, Fla. (AP) — Staffing firm MPS Group Inc. said Wednesday first-quarter profit plunged 92 percent, hurt by the recession, as demand for both temporary and permanent workers plummeted.

Profit for the quarter ended March 31 fell to $1.6 million, or 2 cents per share, from $19.1 million, or 20 cents per share a year ago.

Revenue decreased 24 percent to $429.4 million from $567.8 million last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 4 cents per share on revenue of $430.5 million.

The company said results were in line with its expectations, but said poor economic conditions continue to hurt revenue.

North American revenue fell 18 percent. Demand was weak across all the company's specialty divisions but healthcare was the least affected. International revenue fell 34 percent.

Separately the company gave second-quarter guidance below analyst expectations.

Shares rose 23 cents, or 2.9 percent, to $8.26 amid a broader market rally. The stock has traded between $4.16 and $12.76 during the past 52 weeks.