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Manpower Q4 Revenue Up 18%

February 02 2011

Manpower Inc. (NYSE: MAN), one of the world's largest staffing firms, reported fourth-quarter revenue rose 18.1 percent to $5.2 billion from the year-ago quarter -- up 22.1 percent in constant currency.
U.S. revenue rose 62.2 percent to $777.1 million.

"2010 was a very strong year for us and the fourth quarter was no different. Our revenue growth in all geographies remains robust and we continue to leverage our office structure to drive profitability. Europe performed exceptionally, as did our IT staffing. We also experienced strong trends in our solutions offerings," Chairman and CEO Jeffrey Joerres said in a press release.

Fourth-quarter revenue at the company's franchised offices rose 23.5 percent to $263.5 million from $213.4 million in the fourth quarter of 2009. The franchise revenue isn't included in Manpower's total revenue of $5.2 billion, although fees paid to Manpower by the franchisees are included.

In France, one of Manpower's largest markets, fourth-quarter revenue rose 9.9 percent to $1.4 billion. The increase was 19.5 percent in constant currency.

On the other hand, fourth-quarter revenue slipped 32.9 percent at the company's Right Management outplacement division to $87.0 million from the year-ago quarter.

Manpower's fourth-quarter gross margin inched up to 17.4 percent from 17.1 percent from the year-ago quarter.

The company posted fourth-quarter net loss of $350.4 million compared with net income of $29.1 million in the same period a year ago. In the fourth quarter of 2010, the company recorded goodwill and intangible asset impairment charges of $428.8 million related to investments in Right Management and Jefferson Wells.

Manpower estimated first-quarter earnings per share to be in the range of 26 cents to 34 cents with a negligible impact from currency.

For the full year 2010, the company posted revenue of $18.9 billion, an increase of 17.6 percent from the prior year, or 19.2 percent in constant currency. Net loss for the year was $263.6 million compared to a loss of $9.2 million in 2009. Gross profit margin for 2010 narrowed to 17.2 percent versus 17.6 percent reported in 2009.

Manpower completed its acquisition of information technology staffing firm Comsys IT Partners Inc. on April 5. Comsys had ranked No. 3 on Staffing Industry Analysts' list of largest IT staffing firms.

Manpower Inc. (NYSE: MAN)
For the fourth quarter ended Dec. 31, 2010, compared with the same period in 2009.
Revenue: $5.2 billion, +18.1%
Net loss: $350.4 million vs. net income of $29.1 million

For the full year ended Dec. 31, 2010, compared to 2009.
Revenue: $18.9 billion, +17.6%
Net loss: $263.6 million vs. net loss of $9.2 million


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