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View All NewsManpowerGroup revenue down 3.6% in Q4; cites challenging trends in Europe
ManpowerGroup (NYSE: MAN) revenue fell 3.6% in the fourth quarter; the decrease was 1.8% in constant currency. The Milwaukee-based firm reported challenging revenue trends in Europe that were partially offset by growth in the Americas and its Right Management division. However, gross margin at the company improved.
US revenue was down 0.9%, but when measured on an organic basis was down 3%. On the other hand, revenue rose 9.5% in constant currency in the company’s other Americas segment.
Revenue from France, which represents the ManpowerGroup’s single largest market, fell 2.3% in constant currency. Northern European revenue fell 6.4% in constant currency.
“We executed well in a slow growth global economy,” ManpowerGroup Chairman and CEO Jonas Prising said. “Our fourth quarter performance reflects a challenging revenue environment in Europe, partially offset by growth in the Americas, Right Management and most markets within APME.
| (US$ millions) | Q4 2019 | Q4 2018 | % change | % constant currency |
| Revenue | $5,196.6 | $5,393.2 | -3.6% | -1.8% |
| Gross profit | $859.6 | $880.3 | -2.4% | -0.5% |
| Gross margin | 16.5% | 16.3% | ||
| Net earnings | $138.8 | $158.3 | -12.4% | -10.4% |
Right Management revenue rose 4.6% in constant currency. Right Management provides outplacement services and is part of a new brand announced today.
Canadian revenue rose 21% in constant currency. Canada represents 9% of revenue in the company’s Americas segment, which includes the US and other parts of the Americas.
German revenue fell 16% on a constant currency basis while UK revenue was up 3% in constant currency.
Revenue by geography
| (US$ millions) | Q4 2019 | Q4 2018 | % change | % constant currency |
| Americas | ||||
| United States | $626.8 | $632.3 | -0.9% | -0.9% |
| Other Americas | $434.1 | $411.9 | 5.4% | 9.5% |
| Total Americas | $1,060.9 | $1,044.2 | 1.6% | 3.2% |
| Southern Europe | ||||
| France | $1,356.0 | $1,430.6 | -5.2% | -2.3% |
| Italy | $380.0 | $403.8 | -5.9% | -3.0% |
| Other Southern Europe | $589.4 | $459.6 | 28.2% | 29.3% |
| Total Southern Europe | $2,325.4 | $2,294.0 | 1.4% | 3.9% |
| Northern Europe | $1,161.8 | $1,272.6 | -8.7% | -6.4% |
| Asia Pacific Middle East | $596.5 | $732.3 | -18.5% | -19.4% |
| Right Management | $52.0 | $50.1 | 3.8% | 4.6% |
Revenue fell 0.9% in constant currency for the full year.
Full-year earnings
| (US$ millions) | FY 2019 | FY 2018 | % change | % constant currency |
| Revenue | $20,863.5 | $21,991.2 | -5.1% | -0.9% |
| Gross profit | $3,375.1 | $3,579.0 | -5.7% | -1.8% |
| Gross margin | 16.2% | 16.3% | ||
| Net earnings | $465.7 | $556.7 | -16.4% | -13.3% |
Guidance
For the first quarter, ManpowerGroup expects:
- Total revenue, down 2% to 4% (flat/down 2% in constant currency)
- Americas, up 1% to 3% (up 3% to 5% in constant currency)
- Southern Europe, down 1% to up 1% (up 1% to 3% in constant currency)
- Northern Europe, down 5% to 7% (down 3% to 5% in constant currency)
- Asia Pacific Middle East, down 14% to 16% (down 14% to 16% in constant currency)
- Right Management, flat to down 2% (flat to up 2% in constant currency)
- Gross profit margin, 16.1% to 16.3%
Share price and market cap
Shares in ManpowerGroup were down 1.59% to $92.44 as of 1:25 p.m. Eastern time; the company had a market cap of $5.54 billion, according to FT.com.