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View All NewsManpowerGroup fourth-quarter revenue falls 4%; more challenging environment, particularly in Europe
Fourth-quarter revenue fell 4.3% at ManpowerGroup Inc. (NYSE: MAN). Chairman and CEO Jonas Prising cited a more challenging environment, particularly in Europe. The Milwaukee-based firm also noted a stronger US dollar compared to foreign currencies; fourth-quarter revenue was down 0.7% on a constant currency basis. ManpowerGroup also reported results were affected by the sale of its language translation business in the Netherlands.
| (US$ millions) | Q4 2018 | Q4 2017 | % change | % constant currency |
| Revenue | $5,393.2 | $5,637.5 | -4.3% | -0.7% |
| Gross profit | $880.3 | $934.5 | -5.8% | -2.4% |
| Gross margin | 16.3% | 16.6% | ||
| Net earnings | $158.3 | $216.3 | -26.8% | -23.6% |
US revenue fell 5.1% in the fourth quarter. Revenue also fell 4.4% in Southern Europe and 10.3% in Northern Europe, however, the declines on a constant currency basis were 1.1% and 6.6%, respectively.
Revenue rose in Asia Pacific and the Middle East.
Revenue by geography
| (US$ millions) | Q4 2018 | Q4 2017 | % change | % constant currency |
| Americas | ||||
| United States | $632.3 | $666.3 | -5.1% | -5.1% |
| Other Americas | $411.9 | $405.5 | 1.6% | 14.0% |
| Total Americas | $1,044.2 | $1,071.8 | -2.6% | 2.1% |
| Southern Europe | ||||
| France | $1,430.6 | $1,501.7 | -4.7% | -1.7% |
| Italy | $403.8 | $428.9 | -5.9% | -2.8% |
| Other Southern Europe | $459.6 | $468.4 | -1.9% | 2.5% |
| Total Southern Europe | $2,294.0 | $2,399.0 | -4.4% | -1.1% |
| Northern Europe | $1,272.6 | $1,418.1 | -10.3% | -6.6% |
| Asia Pacific Middle East | $732.3 | $695.2 | 5.3% | 8.9% |
| Right Management | $50.1 | $53.4 | -6.3% | -4.0% |
Gross profit fell 2% in the company’s ManpowerGroup Solutions business line but rose 2% in constant currency. The business line includes MSP and RPO and represents 14% of gross profit.
Experis gross profit fell 4%, down 1% in constant currency. It represents 20% of gross profit.
Meanwhile, fourth-quarter gross profit in its Manpower division fell 7%, or 4% in constant currency. The division represented 63% of gross profit.
Quote
“The fourth quarter results reflect a more challenging environment, particularly in Europe,” Prising said. “Our performance demonstrates our capability to respond rapidly as market dynamics in some parts of the world change.”
Full-year results
| (US$ millions) | FY 2018 | FY 2017 | % change | % constant currency |
| Revenue | $21,991.2 | $21,034.3 | 4.5% | 2.5% |
| Gross profit | $3,579.0 | $3,484.6 | 2.7% | 0.9% |
| Gross margin | 16.3% | 16.6% | ||
| Net earnings | $556.7 | $545.4 | 2.1% | 1.1% |
Guidance
First-quarter revenue is expected to fall 10% to 12% year over year, ManpowerGroup reported. On a constant currency basis, revenue is expected to fall 3% to 5%.
Gross profit margin for the first quarter is expected to be in the range of 15.9% to 16.1%.
The first-quarter revenue forecast for geographies :
- Americas, down 3% to 5% (flat to up 2% in constant currency)
- Southern Europe, down 10% to 12% (down 3% to 5% in constant currency)
- Northern Europe, down 16% to 18% (down 8% to 10% in constant currency)
- Asia Pacific Middle East, down 6% to 8% (flat to down 2% in constant currency)
- Right Management, down 5% to 7% (down 1% to 3% in constant currency)
Share price and market cap
Shares in ManpowerGroup rose 2.09% to $77.61 as of 11:22 a.m. Eastern time; the company had a market cap of $4.70 billion, according to FT.com.