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View All NewsManpowerGroup Q4 revenue up 3% in constant currency, but US revenue falls
Fourth-quarter revenue at ManpowerGroup Inc. (NYSE: MAN) rose 3.2% in constant currency, but was flat on a reported basis. The US was a different story, with revenue falling 8.5% in the fourth quarter.
| (US$ millions) | Q4 2016 | Q4 2015 | % growth | % constant currency |
| Revenue | $4,956.1 | $4,953.9 | 0.0% | 3.2% |
| Gross profit | $841.0 | $851.1 | -1.2% | 1.6% |
| Gross margin | 17.0% | 17.2% | ||
| Net earnings | $127.4 | $123.9 | 2.8% | 6.6% |
In terms of revenue by geography, French revenue rose in 6.1% on a constant-currency basis. France is the company’s largest single market.
Revenue also rose 6.2% in constant currency in Northern Europe, but there were differences among Northern European countries. ManpowerGroup reported revenue rose 36% in constant currency in the Netherlands, or 23% on an organic and constant-currency basis. But in the UK, revenue fell 20% on a constant-currency basis in the fourth quarter, but was down just 2% on a reported basis.
Revenue by geography
| (US$ millions) | Q4 2016 | Q4 2015 | % growth | % constant currency |
| Americas | ||||
| United States | $684.7 | $748.5 | -8.5% | -8.5% |
| Other Americas | $378.2 | $391.8 | -3.5% | 8.3% |
| Total Americas | $1,062.9 | $1,140.3 | -6.8% | -2.7% |
| Southern Europe | ||||
| France | $1,228.6 | $1,175.4 | 4.5% | 6.1% |
| Italy | $305.8 | $312.3 | -2.1% | -0.6% |
| Other Southern Europe | $377.8 | $359.8 | 5.0% | 6.1% |
| Total Southern Europe | $1,912.2 | $1,847.5 | 3.5% | 5.0% |
| Northern Europe | $1,292.8 | $1,316.7 | -1.8% | 6.2% |
| Asia Pacific Middle East | $629.6 | $579.2 | 8.7% | 4.7% |
| Right Management | $58.6 | $70.2 | -16.5% | -14.5% |
Gross margin
Gross margin narrowed to 17.0% in the fourth quarter from 17.2% in the year-ago quarter.
Gross profit in the company’s ManpowerGroup Solutions business line — which includes recruitment process outsourcing and managed service provider offering and other outsourcing solutions — rose 9% as reported to $100 million but was up 11% in constant currency.
Full-year revenue
| (US$ millions) | 2016 | 2016 | % growth | % constant currency |
| Revenue | $19,654.1 | $19,329.9 | 1.7% | 4.1% |
| Gross profit | $3,333.8 | $3,295.8 | 1.2% | 3.3% |
| Gross margin | 17.0% | 17.1% | ||
| Net earnings | $443.7 | $419.2 | 5.8% | 8.4% |
Quote
“We are very pleased with our strong performance in the fourth quarter, with improving top line growth and strong bottom line performance, capping off a solid year, despite the uneven and slow growth environment in 2016,” said Chairman and CEO Jonas Prising.
Guidance
ManpowerGroup forecast first-quarter revenue to rise between 1% to 3% on a year-over-year basis. In constant currency, the company expects revenue to increase between 5% and 7%.
First-quarter revenue guidance by region:
- Americas, down 2% to 4% (down 1% to 3% in constant currency)
- Southern Europe, up 4% to 6% (up 8% to 10% in constant currency)
- Northern Europe, up 1% to 3% (up 9% to 11% in constant currency)
- Asia Pacific Middle East, up 4% to 6% (up 4% to 6% in constant currency)
- Right Management, down 11% to 13% (down 9% to 11% in constant currency)
First-quarter gross margin is forecast to be between 16.6% and 16.8%.
Share price and market cap
Shares in ManpowerGroup fell 0.61% in early afternoon trading to $94.08; the company had a market cap of $6.31 billion, according to Yahoo.