On Assignment News Release (10/25/12)

On Assignment Inc.’s third-quarter results show a 139.1% jump in revenue year-over-year to $388.3 million, with $202.7 million of that amount tied to Apex Systems, which it acquired in May. Revenue rose 14.3% over the same period without factoring in Apex Systems’ results. The staffing firm also reports net income of $17.4 million, up from $8.5 million in the second quarter and $7.8 million in the third quarter of 2011.

On Assignment president and chief executive officer Peter Dameris said, “I’m very pleased that, despite the macroeconomic challenges, we grew our revenues year-over-year approximately 14% on both a pro forma basis (including Apex) and for our legacy businesses (which excludes Apex). At the same time, our adjusted earnings before interest, taxes, depreciation, and amortization (both pro forma and legacy businesses) grew at twice the rate of our revenues.”

Wall Street Journal (10/26/12) Jeffrey Sparshott; Eric Morath

U.S. economic growth improved in the third quarter as consumers and the federal government spent more and the housing sector picked up. GDP in the second quarter of 2012 was initially estimated at 1.5%, revised up to 1.7%, and then revised down to 1.3%. The slow pace of growth has contributed to high unemployment. So far this year, employment growth has averaged 146,000 jobs per month, a decline from 153,000 last year.

Wall Street Journal (10/25/12) Scott Thurm

Chief executives increasingly are concerned about the impact of the “fiscal cliff” on their profits. Some business groups are urging lawmakers to take steps to prevent the fiscal cliff, which will occur when the Bush-era tax cuts expire and spending cuts are enacted simultaneously at the start of the new year, but the chief executives of 80 U.S. corporations recently signed a manifesto calling on Congress to use tax increases and spending cuts to lower the federal deficit.