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View All NewsManpowerGroup Q2 revenue rises 4.5% in constant currency, US revenue slips
ManpowerGroup (NYSE: MAN) revenue rose 4.5% in constant currency in the second quarter. However, US revenue fell 4.6% and revenue at Right Management, which provides outplacement, was down 10.5% in constant currency. In addition, second-quarter gross margin for the company narrowed to 16.3% with temporary staffing, Right Management and currency weighing on it.
| (US$ millions) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Revenue | $5,656.9 | $5,174.8 | 9.3% | 4.5% |
| Gross profit | $922.7 | $861.7 | 7.1% | 2.8% |
| Gross margin | 16.3% | 16.7% | ||
| Net earnings | $143.4 | $117.0 | 22.6% | 17.4% |
Revenue growth was boosted by ManpowerGroup’s foreign operations, including in Italy where revenue rose 11.8% in constant currency and “other Americas,” where revenue rose 13.1% in constant currency. Among its other Americas operations are Mexico, where revenue rose 9% in constant currency, and Argentina, where revenue rose 19% in constant currency despite falling 19% on a reported basis.
In France, the company’s largest geography, revenue rose 3.1% in constant currency.
Revenue by geography
| (US$ millions) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Americas | ||||
| United States | $640.5 | $671.3 | -4.6% | -4.6% |
| Other Americas | $412.0 | $385.6 | 6.9% | 13.1% |
| Total Americas | $1,052.5 | $1,056.9 | -0.4% | 1.9% |
| Southern Europe | ||||
| France | $1,512.5 | $1,356.3 | 11.5% | 3.1% |
| Italy | $443.0 | $366.5 | 20.9% | 11.8% |
| Other Southern Europe | $478.5 | $412.9 | 15.9% | 9.3% |
| Total Southern Europe | $2,434.0 | $2,135.7 | 14.0% | 5.8% |
| Northern Europe | $1,393.2 | $1,281.7 | 8.7% | 2.2% |
| Asia Pacific Middle East | $724.8 | $643.4 | 12.6% | 10.4% |
| Right Management | $52.4 | $57.1 | -8.3% | -10.5% |
In Northern Europe, ManpowerGroup noted UK revenue rose 3% in constant currency, but Dutch revenue fell 1% in constant currency. Revenue was also flat in Germany on a constant currency basis.
By business line, the company reported second-quarter gross profit at its ManpowerGroup Solutions business was up 9% in constant currency. This business includes RPO and MSP operations.
Gross profit growth (constant currency)
ManpowerGroup also reported restructuring costs of $15.3 million in the second quarter, compared with $10.5 million in the second quarter of last year. In this year’s quarter, restructuring costs were concentrated in Northern Europe where the company reported $13.2 million in such costs, according to a filing with US Securities and Exchange Commission. It also reported $2.3 million in restructuring costs in Southern Europe.
Guidance
ManpowerGroup expects third-quarter revenue to rise 4% to 6% in constant currency. Guidance by geography (in constant currency):
- Americas: up 4% to 6%
- Southern Europe: up 3% to 5%
- Northern Europe: up 2% to 4%
- Asia Pacific Middle East: up 10% to 12%
- Right Management: down 4% to 6%
Share price and market cap
Shares in ManpowerGroup were up 0.046% at 12:06 p.m. Eastern time to $86.14. The company had a market cap of $5.70 billion.