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View All NewsManpowerGroup global Q2 revenue up 3%; US revenue falls
Second-quarter revenue at ManpowerGroup (NYSE: MAN) rose 3.3% and was impacted by a stronger US dollar. In constant currency, revenue was up 4.5%. The Milwaukee-based staffing giant also reported revenue fell 4.9% in the US.
In France, the country’s largest single market, revenue rose by 4.1%, or 2.2% in constant currency. Revenue rose in most of Europe, but Italy was an exception. Second-quarter revenue there fell 6.1%, or 7.8% in constant currency.
In Asia Pacific and the Middle East, second-quarter revenue rose 10.4%, or 9.6% in constant currency.
Second-quarter gross margin was flat at 17.1%.
| (US$ millions) | Q2 2016 | Q2 2015 | % growth | % constant currency |
| Revenue | $5,022.1 | $4,861.3 | 3.3% | 4.5% |
| Gross profit | $860.7 | $830.6 | 3.6% | 4.5% |
| Gross margin | 17.1% | 17.1% | ||
| Net earnings | $115.4 | $105.7 | 9.1% | 10.2% |
Quote
“We are pleased with our second-quarter results, contributing to a good first half of 2016,” Chairman and CEO Jonas Prising said. “We were able to deliver solid results despite a softening and more uncertain global economic growth environment.”
Revenue by geography
| (US$ millions) | Q2 2016 | Q2 2015 | % growth | % constant currency |
| Americas | ||||
| United States | $725.3 | $762.6 | -4.9% | -4.9% |
| Other Americas | $355.7 | $368.1 | -3.3% | 14.2% |
| Total Americas | $1,081.0 | $1,130.7 | -4.4% | 1.3% |
| Southern Europe | ||||
| France | $1,252.2 | $1,202.6 | 4.1% | 2.2% |
| Italy | $299.8 | $319.3 | -6.1% | -7.8% |
| Other Southern Europe | $379.4 | $348.1 | 9.0% | 7.4% |
| Total Southern Europe | $1,931.4 | $1,870.0 | 3.3% | 1.4% |
| Northern Europe | $1,322.3 | $1,231.8 | 7.3% | 10.0% |
| Asia Pacific Middle East | $614.6 | $556.6 | 10.4% | 9.6% |
| Right Management | $72.8 | $72.2 | 0.9% | 2.6% |
Guidance
ManpowerGroup forecast third-quarter revenue to range from falling 1% to rising 1%. In constant currency, the company expects revenue to increase between 1% and 3%. Third-quarter revenue guidance by region:
- Americas, down 2% to 4% (flat to up 2% in constant currency)
- Southern Europe, down 1% to up 1% (down 1% to up 1% in constant currency)
- Northern Europe, down 1% to 3% (up 4% to 6% in constant currency)
- Asia Pacific Middle East, up 9% to 11% (up 4% to 6% in constant currency)
- Right Management, down 1% to up 1% (up 1% to 3% in constant currency)
Gross margin is forecast to be between 16.9% and 17.1%.
Share price and market cap
Shares in ManpowerGroup rose 2.38% to $70.51 in early afternoon trading. The company had a market cap of $5.05 billion, according to Yahoo!