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View All NewsManpowerGroup revenue rises 6%
ManpowerGroup (NYSE: MAN) reported revenue rose 5.6 percent (3.7 percent in constant currency) in the second quarter to $5.32 billion, aided by an improved hiring environment in Europe. U.S. revenue at the Milwaukee-based staffing firm also rose year over year in the second quarter ended June 30.
In the U.S., second-quarter revenue rose 3.7 percent to $775.9 million from to $748.5 million in the second quarter of last year. The company’s U.S. revenue includes only the fees received from its franchise offices, which totaled $3.9 million for the quarter. However, Manpower did report that second-quarter revenue at the franchise offices rose by 8.6 percent year over year to $190.3 million.
ManpowerGroup’s second-quarter net earnings jumped 61.0 percent to $109.8 million from $68.2 million in the same quarter last year. The second quarter of the previous year included a restructuring charge of $20.0 million, primarily related to office consolidations and severance.
ManpowerGroup ranks at Nos. 3 and 4 on Staffing Industry Analysts’ lists of largest global and U.S. staffing firms, respectively.
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“In the second quarter, we saw our revenue growth improve in a number of major operations including the U.S., U.K. and Italy,” said CEO Jonas Prising. “This combined with our continued focus on efficiency and productivity, has resulted in good operational leverage and healthy earnings growth.”
Revenue
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | % constant currency | |
| Revenue | $5,321.7 | $5,040.7 | 5.6% | 3.7% |
Revenue by geography
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | % constant currency | |
| Americas | ||||
| United States | $775.9 | $748.5 | 3.7% | 3.7% |
| Other Americas | $375.2 | $378.2 | -3.1% | 7.7% |
| Total Americas | $1,151.1 | $1,135.7 | 1.4% | 5.0% |
| Southern Europe | ||||
| France | $1,412.1 | $1,320.6 | 6.9% | 1.9% |
| Italy | $313.9 | $278.4 | 12.8% | 7.5% |
| Other Southern Europe | $243.0 | $203.0 | 19.7% | 14.9% |
| Total Southern Europe | $1,969.0 | $1,802.0 | 9.3% | 4.2% |
| Northern Europe | $1,527.8 | $1,398.8 | 9.2% | 4.6% |
| Asia Pacific Middle East | $594.0 | $623.3 | -4.7% | -1.8% |
| Right Management | $79.8 | $80.9 | -1.4% | -2.7% |
Gross margin
| Q2 2014 | Q2 2013 | |
| Gross margin | 16.9% | 16.6% |
Net earnings
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | |
| Net earnings | $109.8 | $68.2 | 61.0% |
Guidance
ManpowerGroup expect third-quarter revenue to rise 5 percent to 7 percent (up 4 percent to 6 percent in constant currency). It expects Americas revenue to increase 4 percent to 6 percent (up 6 percent to 8 percent in constant currency).
Share price and market cap
Shares in ManpowerGroup were down 4.20 percent in early afternoon trading to $79.65 and ManpowerGroup has a market cap of approximately $6.34 billion, according to Yahoo!