ManpowerGroup Inc. (NYSE: MAN) reported first-quarter revenue fell 2.2% in constant currency, or 7.6% on a reported basis, to $4.75 billion. However, gross margin improved, with the company citing strong pricing discipline and increased outplacement activity in its Right Management business line.

“Our first-quarter results reflect a challenging operating environment in the US and Europe,” Chairman and CEO Jonas Prising said. “Despite a softening demand environment for our brands, labor markets remained strong during the first quarter. Employers are intent on holding on to the staff they have and are hiring new talent more selectively at a measured pace. We continue to adjust our cost base in the parts of our business where demand has decreased.”

US revenue fell 13.4% to $770.0 million. Revenue also fell across Europe on a constant currency basis with the exception of France, ManpowerGroup’s largest single market, where it rose 2.5% in constant currency. Revenue also rose by 7.3% in constant currency in the company’s Asia Pacific Middle East operations.

Looking at earnings by business line, ManpowerGroup’s Talent Solutions segment fell 1% year over year on an organic, constant currency basis but was up 1% on a reported basis. Talent Solutions includes ManpowerGroup’s Right Management and outplacement operations. Talent Solutions’ RPO and MSP business experienced revenue declines, but the company noted they had significant growth in the year-ago period.

Revenue in the Manpower operations fell 1% year over year on an organic, constant currency basis, and Experis revenue fell 5%.

Net earnings fell 7.4% in constant currency. The current quarter includes $2.5 million in restructuring costs.

Guidance

For the second quarter, ManpowerGroup forecasts:

• Total revenue to be down between 2% and 6% (down 1% to 5% in constant currency)
• Americas revenue to be down between 8% and 12% (down 4% to 8% in constant currency)
• Southern Europe revenue to be between down 3% and up 1% (down 1% to 5% in constant currency)
• Northern Europe revenue to be down between 4% and 8% (down 3% to up 7% in constant currency)
• Asia Pacific Middle East revenue to be flat to up 4% (up 4% to up 8% in constant currency)
• Gross profit margin to be between 17.9% and 18.1%

Share price and market cap

Shares in ManpowerGroup were down 5.92% to $74.80 as of 11:21 a.m. Eastern time today; they were 16.87% above their 52-week low, according to FT.com. The company had a market cap of $4.04 billion.