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Earnings: Manpower

July 23, 2009

Manpower Inc.'s (NYSE: MAN) second-quarter revenue fell 36% year-over-year, a 27% decrease in constant currency, to $3.80 billion. Revenue fell in all major reporting units with the exception of Right Management.

The Milwaukee, WI-based company, one of the world's largest staffing firms, posted second-quarter net earnings of $19.3 million compared with $107.4 million in the year-ago quarter for a decrease of 82%, or 80% on a constant currency basis.

Excluding a reorganization charge of $0.11 per share, the company earned $0.36 per share, $0.26 higher than the street view, primarily due to a one-time tax credit of $0.19 per share.

Manpower’s U.S. second-quarter revenue fell 22.9% to $374.3 million from $491.6 million in the same quarter of 2008; its revenue from France fell 43.8% to $1.10 billion from $1.96 billion.

The company noted second-quarter revenue from its Right Management division, which provides outplacement as one of its services, increased 35.9%, or 46.5% on a constant currency basis, to $158.1 million.

Manpower's overall gross margin in the second-quarter declined to 18.3% from 19.5% on a year-over-year basis.

The company said in a conference call with analysts that it closed 66 offices during the quarter, leaving it with 4,100. Manpower reported that full-time equivalent personnel was down 19% compared to the prior year.

Manpower said sales in the third-quarter would be down 29% to 31% on a year-over-year basis, and forecast profit for third-quarter between $0.07 and $0.21 per share. The consensus estimate was $0.19 per share.

Manpower Inc. (NYSE: MAN)
For the second quarter ended June 30, 2009, compared with the same period in the previous year.
Revenue: $3.80 billion, -36%
Net Income: $19.3 million, -82%