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View All NewsManpowerGroup Q3 revenue rises 4% in constant currency, but falls in US
Third-quarter revenue rose 4.3% in constant currency at ManpowerGroup (NYSE: MAN) with French revenue — the company’s biggest geography — up 10.2% in constant currency and Italian revenue up 22.7%.
Gross margin also narrowed in the third quarter, but net earnings rose.
| (US$ millions) | Q3 2017 | Q3 2016 | % growth | % constant currency |
| Revenue | $5,464.8 | $5,088.2 | 7.4% | 4.3% |
| Gross profit | $900.6 | $858.3 | 4.9% | 2.1% |
| Gross margin | 16.5% | 16.9% | ||
| Net earnings | $137.7 | $129.2 | 6.6% | 3.5% |
Looking at the US alone, however, third-quarter revenue fell 8.8%; that follows a year-over-year decline of 7.4% in the second quarter.
ManpowerGroup also reported third-quarter revenue rose 1.5% in its Northern Europe segment; German revenue rose 9% in constant currency while the Nordics rose 7%. However, UK revenue fell 8% in constant currency.
Revenue by geography
| (US$ millions) | Q3 2017 | Q3 2016 | % growth | % constant currency |
| Americas | ||||
| United States | $659.9 | $723.7 | -8.8% | -8.8% |
| Other Americas | $401.6 | $383.7 | 4.7% | 3.6% |
| Total Americas | $1,061.5 | $1,107.4 | -4.1% | -4.5% |
| Southern Europe | ||||
| France | $1,481.7 | $1,277.8 | 16.0% | 10.2% |
| Italy | $386.1 | $299.0 | 29.1% | 22.7% |
| Other Southern Europe | $450.6 | $389.5 | 15.7% | 9.8% |
| Total Southern Europe | $2,318.4 | $1,966.3 | 17.9% | 12.0% |
| Northern Europe | $1,367.9 | $1,300.1 | 5.2% | 1.5% |
| Asia Pacific Middle East | $665.4 | $650.9 | 2.2% | 3.6% |
| Right Management | $51.6 | $63.5 | -18.8% | -19.6% |
Third-quarter gross-profit rose 2.1% on a constant currency basis. Looking at individual business lines, gross profit fell 19% in constant currency in the company’s Right Management outplacement business, but rose 9% in constant currency in the ManpowerGroup solutions business, which includes RPO and the TAPFIN managed service provider offering.
Quote
“We made good progress with solid results in the third quarter and we are well positioned to finish 2017 with strong performance,” said Chairman and CEO Jonas Prising. “Our market-leading global footprint and extensive portfolio of workforce solutions continue to resonate well with our clients and candidates. We expect the broad-based global improvement in both employer hiring intentions and economic growth to provide us with good opportunities for continued profitable growth.”
Guidance
ManpowerGroup forecast fourth-quarter revenue to range from a 5% increase in constant currency to an increase of 7%.
Forecast in constant currency by geography includes:
- Americas, flat to down 2%
- Southern Europe, up 12% to 14%
- Northern Europe, down 1% to up 1%
- Asia Pacific and the Middle East, up 6% to 8%
- Right Management, down 6% to 8%
The company forecast fourth-quarter gross profit of between 16.5% and 16.7%.
Share price and market cap
Shares in ManpowerGroup rose 0.09% to $122.80 in early afternoon trading; the company had a market cap of $8.17 billion, according to Yahoo.