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View All NewsManpowerGroup revenue falls 13% in Q3, but firm notes improving trend
ManpowerGroup Inc. (NYSE: MAN) reported revenue fell 12.7% in the third quarter, a decline of 14.5% in constant currency. Its US revenue fell 13.1%. On the other hand, the Milwaukee-based staffing giant reported an improving trend in the quarter, marking five months of growth since April 2020.
ManpowerGroup also recorded restructuring charges of $49.9 million in the third quarter as part of efforts to streamline operations.
“As the global recovery took hold in the third quarter, we experienced strengthening demand for our services reflecting the diversity of our offerings and strength of our digital capabilities,” Chairman and CEO Jonas Prising said in a statement.
“We also continued to advance strategic initiatives in the quarter including restructuring activities to improve efficiency, adjustments to our country portfolio to improve profitability, and ongoing execution of our digitization initiatives,” Prising said.
| (US$ millions) | Q3 2020 | Q3 2019 | % change | % constant currency |
| Revenue | $4,584.8 | $5,248.9 | -12.7% | -14.5% |
| Gross profit | $725.1 | $840.3 | -13.7% | -15.4% |
| Gross margin | 15.8% | 16.0% | ||
| Net earnings/ loss | $10.3 | $146.1 | -93.0% | -92.9% |
The company highlighted results from its Talent Solutions businesses, which include RPO, MSP and Right Management (outplacement and other services). Gross profit in Talent Solutions was down by just 1% year over year compared to a decline of 15% in its Manpower staffing business and a decline of 18% in its Experis IT, engineering and finance staffing business.
Revenue by geography
| (US$ millions) | Q3 2020 | Q3 2019 | % change | % constant currency |
| Americas | ||||
| United States | $578.8 | $666.4 | -13.1% | -13.1% |
| Other Americas | $350.3 | $428.1 | -18.2% | -8.2% |
| Total Americas | $929.1 | $1,094.5 | -15.1% | -11.2% |
| Southern Europe | ||||
| France | $1,205.3 | $1,386.4 | -13.1% | -17.3% |
| Italy | $351.2 | $376.9 | -6.8% | -11.3% |
| Other Southern Europe | $555.9 | $594.5 | -6.5% | -10.7% |
| Total Southern Europe | $2,112.4 | $2,357.8 | -10.4% | -14.7% |
| Northern Europe | $947.7 | $1,166.8 | -18.8% | -21.6% |
| Asia Pacific Middle East | $595.6 | $629.8 | -5.4% | -6.0% |
Mexican revenue fell 20%, or 9% in constant currency, and Canadian revenue fell 11%, or 10% in constant currency.
Guidance
ManpowerGroup forecast fourth-quarter revenue to be down between 8% and 10% year over year; in constant currency, the decline would be between 10% and 12% year over year.
Forecast revenue by geography includes:
- Americas, down between 13% to 15%; a decrease of between 9% and 11% in constant currency.
- Southern Europe, down between 5% and 7%; a decrease of between 10% and 12% in constant currency.
- Northern Europe, down between 13% and 15%; a decrease of between 15% and 17% in constant currency
- Asia Pacific Middle East, down between 2% and 4%; a decrease of between 4% and 6% in constant currency
The company expects gross profit margin to be between 15.8% and 16.0% in the fourth quarter.
Share price and market cap
Shares in ManpowerGroup were down 3.44% to $69.75 as of 11:53 a.m. Eastern time, but they were still 40.72% above their 52-week low. The company had a market cap of $4.20 billion.