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TMP Worldwide employs 55 people in Ireland, 12 of whom work at the recruitment Web site Monster.ie. Twenty-two people work at the firm's executive resourcing group, with the balance working in TMP's advertising and communications group.
"Although each of our divisions is working together to save costs, we are expanding in Ireland," said Karen Kilroy, director of operations and marketing manager of TMP Worldwide in Ireland. The company has just hired three additional employees, having won a contract to provide advertising services to the government body Eastern Health Shared Services.
The outlook for TMP Worldwide in Ireland is in contrast to the second quarter results announced by TMP's headquarters in New York. The company said that its adjusted operating income in the second quarter fell to USD22 million from USD58 million in the same period a year ago, a drop of 62 percent.
Revenue from commissions and fees for the recruitment and communications firm declined 24 percent to USD291, down from USD384 million in the same quarter last year. Fees and commissions were about the same as in the first quarter of 2002. "We continue to be challenged by the 'jobless recovery' and its impact on our businesses," said Andrew J. McKelvey, chairman and chief executive officer of TMP Worldwide in a statement. "Specifically, in the second quarter, commissions and fees for Monster, Executive Search, and Monstermoving were below our expectations." McKelvey said that commissions and fees for advertising and communications exceeded expectations and e-resourcing was within expectations.
The company announced that its operating expenses had declined by USD57 million, 17.5 percent lower than the same quarter in the previous year, which can be attributed to the huge cost cuts implemented across its global operations in recent months, by which it hopes to save USD35 million in 2002 and 2003.
The restructuring amounts to the loss of 1,000 jobs and the closure of 102 facilities. The company reported that it has already eliminated 750 positions and that 60 offices had already been closed.
Finally TMP reported adjusted earnings per share of USD0.14, compared to USD0.36 for the same quarter in 2001. However, on a GAAP basis, the company had a loss of USD4.53 per share, compared to USD0.17 per share for the same quarter in 2001. The difference between the figures lies in a pre-tax charge of USD564 million, 80 percent of which the amortisation of goodwill, with restructuring costs making up the balance.
Importantly, The US firm lowered its estimates for the third quarter 2002, expecting to earn USD0.14 per share, amid an 18 percent drop in commissions and fees from the third quarter in 2001.
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