Firm Expanding to Meet Demand for Local and 'Global' Executives
BEIJING, March 6 /Xinhua-PRNewswire/ -- Heidrick & Struggles, the first executive search firm to enter China, has reported a 33.7 percent lift in net revenue for 2007 from its operations in Greater China, and is optimistic for continued growth in 2008. The firm reported net revenue of US$22.2 million in aggregated results for the People's Republic of China, the Special Administrative Region of Hong Kong and Taiwan.
China partner-in-charge Steve Mullinjer says that with the demand for qualified Chinese executives far outstripping supply, the war for talent has led to increased competition for local leaders.
"We have responded to escalating demand by aggressive expansion of our teams, infrastructure and offices to better address our clients' emerging needs," Mullinjer says.
With offices in Beijing, Shanghai, Chongqing, Hong Kong and Taipei, Heidrick & Struggles addresses the needs of Chinese companies and multinationals, with its work mainly focussed on the chief executive and other C-suite roles, such as chief operating officer and chief information officer. The firm's clients include financial services companies, automotive retailers and other manufacturers.
"We have successfully launched our funds placement business and are also operating strongly in the technology and Internet space," Mullinjer says.
Across the Asia Pacific region, net revenue for 2007 increased by 58.8 percent to US$78.6 million, or approximately 51 percent on a constant currency basis. Operating income of US$15.9 million increased 20.1 percent over 2006 and the operating margin was 20.3 percent, compared with 26.8 percent in 2006.
Globally, for the year ended December 31, 2007, Heidrick & Struggles reported consolidated net revenue of US$619.7 million, an increase of 29.5 percent from US$478.5 million in 2006.
In 2008, the company expects worldwide consolidated net revenue of between US$650 and US$670 million, representing growth of between 5 percent and 8 percent over 2007 net revenue. The company is targeting a 2008 full-year operating margin of 13 percent.
About Heidrick & Struggles International, Inc.
Heidrick & Struggles International, Inc. is the world's premier provider of senior-level executive search and leadership consulting services, including talent management, board building, executive on-boarding and M&A effectiveness. For more than 50 years, we have focused on quality service and built strong leadership teams through our relationships with clients and individuals worldwide. Today, Heidrick & Struggles leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. For more information about Heidrick & Struggles, please visit http://www.heidrick.com .
Safe Harbor Statement
This press release contains forward-looking statements. The forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry in which we operate and management's beliefs and assumptions. Forward-looking statements may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted or implied in the forward-looking statements. Factors that may affect the outcome of the forward-looking statements include, among other things: our ability to attract and retain qualified executive search consultants; the condition of the economies in the United States, Europe, or elsewhere; social or political instability in markets where we operate; the impact of foreign currency exchange rate fluctuations; price competition; the ability to forecast, on a quarterly basis, variable compensation accruals that ultimately are determined based on the achievement of annual results; our ability to realize our tax loss carryforwards; the timing of a partial release or full reversal of deferred tax asset valuation allowance; the mix of profit and loss by country; an impairment of our goodwill and other intangible assets; and delays in the development and/or implementation of new technology and systems. Our reports filed with the U.S. Securities and Exchange Commission also include information on factors that may affect the outcome of forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Thomas Liddle
Communications Consultant
Tel: +61-2-8205-2376
Email: tliddle@heidrick.com
Eric Sodorff
Director, Corporate Communications
Tel: +1-312-496-1613
Email: esodorff@heidrick.com
