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View All NewsManpowerGroup Q1 revenue up 16% with foreign currency boost, but US revenue down 7%
First-quarter revenue at ManpowerGroup Inc. (NYSE: MAN) rose 16.1% year over year with a boost from foreign currencies relative to the US dollar; revenue was up 5.4% in constant currency. The Milwaukee-based staffing giant also reported US revenue fell 6.8% year over year. The only other segment where revenue fell was Right Management; the outplacement provider posted a 15.1% decline in revenue on a constant currency basis.
| (US$ millions) | Q1 2018 | Q1 2017 | % change | % constant currency |
| Revenue | $5,522.4 | $4,757.2 | 16.1% | 5.4% |
| Gross profit | $885.4 | $787.8 | 12.4% | 2.8% |
| Gross margin | 16.0% | 16.6% | ||
| Net earnings | $97.0 | $74.4 | 30.4% | 18.2% |
The company noted restructuring costs of $24 million in the quarter.
In addition, first-quarter gross margin narrowed. However, ManpowerGroup reported gross profit rose 16%, or 9% on a constant currency basis, in its ManpowerGroup Solutions business, which includes MSP and RPO operations.
Revenue by Geography
| (US$ millions) | Q1 2018 | Q1 2017 | % change | % constant currency |
| Americas | ||||
| United States | $616.3 | $661.5 | -6.8% | -6.8% |
| Other Americas | $406.3 | $364.7 | 11.4% | 10.6% |
| Total Americas | $1,022.6 | $1,026.2 | -0.3% | -0.6% |
| Southern Europe | ||||
| France | $1,424.0 | $1,137.5 | 25.2% | 8.5% |
| Italy | $413.6 | $294.4 | 40.5% | 21.8% |
| Other Southern Europe | $474.4 | $372.0 | 27.5% | 12.3% |
| Total Southern Europe | $2,312.0 | $1,803.9 | 28.2% | 11.5% |
| Northern Europe | $1,417.6 | $1,238.7 | 14.4% | 1.2% |
| Asia Pacific Middle East | $720.2 | $632.4 | 13.9% | 8.2% |
| Right Management | $50.0 | $56.0 | -10.6% | -15.1% |
Quote
“We are pleased with the solid start to the year, with strong revenue growth, improved productivity and increased earnings,” Chairman and CEO Jonas Prising said. “We are seeing broad-based demand globally for our services and workforce solutions.”
Guidance
ManpowerGroup forecast second-quarter revenue will increase 13% to 15% — or 5% to 7% on a constant currency basis. Forecasts for year-over-year change in revenue in other regions included:
- Americas: Flat to up 2% (up 1% to 3% in constant currency)
- Southern Europe: Up 20% to 22% (up 8% to 10% in constant currency)
- Northern Europe: Up 14% to 16% (up 3% to 5% in constant currency)
- Asia Pacific, Middle East: Up 11% to 13% (up 6% to 8% in constant currency)
- Right Management: Down 3% to 5% (down 7% to 9% in constant currency)
Share price and market cap
Shares in ManpowerGroup were down 11.95% to $104.53 at 12:44 p.m. Eastern time. The company had a market cap of $6.91 billion.