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View All NewsManpowerGroup Q4 revenue rises in Europe, but falls 3% in US
ManpowerGroup Inc. (NYSE: MAN) reported fourth-quarter revenue rose 7.3% on a constant currency basis. While US revenue fell 2.7%, revenue rose across Europe with the fastest growth taking place in Italy where revenue rose 28.5% in constant currency. Fourth-quarter revenue in France, the company’s largest single market, rose 12.0% in constant currency.
ManpowerGroup also reported fourth-quarter revenue in its Right Management outplacement segment fell 11.6% in constant currency.
Revenue
| (US$ millions) | Q4 2017 | Q4 2016 | % change | % constant currency |
| Revenue | $5,637.5 | $4,956.1 | 13.7% | 7.3% |
| Gross profit | $934.5 | $841.0 | 11.1% | 5.4% |
| Gross margin | 16.6% | 17.0% | ||
| Net earnings | $216.3 | $127.4 | 69.7% | 64.3% |
Gross margin narrowed, and the company noted gross profit in its Right Management segment fell 10% in constant currency.
On the other hand, gross profit was up 5% year over year in its Manpower and Experis segments. And gross profit in the ManpowerGroup Solutions segment was up 17% in constant currency — the segment includes RPO, MSP and other business lines.
Net earnings jumped by 64.3% on a constant currency basis. The company said results were affected by net tax benefits from the recently passed Tax Cuts and Jobs Act in the US. Excluding the impact of the net tax benefits, net earnings rose by 8% per diluted share on a constant currency basis.
Revenue by Geography
| (US$ millions) | Q4 2017 | Q4 2016 | % change | % constant currency |
| Americas | ||||
| United States | $666.3 | $684.7 | -2.7% | -2.7% |
| Other Americas | $405.5 | $378.2 | 7.2% | 6.1% |
| Total Americas | $1,071.8 | $1,062.9 | 0.8% | 0.4% |
| Southern Europe | ||||
| France | $1,501.7 | $1,228.6 | 22.2% | 12.0% |
| Italy | $428.9 | $305.8 | 40.3% | 28.5% |
| Other Southern Europe | $468.4 | $377.8 | 24.0% | 13.9% |
| Total Southern Europe | $2,399.0 | $1,912.2 | 25.5% | 15.0% |
| Northern Europe | $1,418.1 | $1,292.8 | 9.7% | 1.6% |
| Asia Pacific Middle East | $695.2 | $629.6 | 10.4% | 9.1% |
| Right Management | $53.4 | $58.6 | -8.9% | -11.6% |
In the UK, which is included in Northern Europe, fourth-quarter daily revenue growth fell 3% on a constant currency basis.
Full-year results
| (US$ millions) | Q4 2017 | Q4 2016 | % change | % constant currency |
| Revenue | $21,034.3 | $19,654.1 | 7.0% | 6.0% |
| Gross profit | $3,484.6 | $3,333.8 | 4.5% | 3.6% |
| Gross margin | 16.6% | 17.0% | ||
| Net earnings | $545.4 | $443.7 | 22.9% | 21.3% |
Guidance
ManpowerGroup forecast first-quarter revenue to rise 4% to 6% in constant currency. The Americas first-quarter revenue is forecast to be flat or down 2% in constant currency.
In Europe, the company forecast first-quarter Southern Europe revenue to be up 10% to 12% in constant currency while Northern Europe revenue will be flat to up 2% in constant currency
Asia Pacific Middle East first-quarter revenue will be up 1% to 3% in constant currency while Right Management first-quarter revenue will be down 11% to 13% in constant currency.
Share price and market cap
Shares in ManpowerGroup were down 6.37% to $123.81 at 12:06 p.m. Eastern time. The company had a market cap of $8.21 billion.