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Manpower fourth-quarter revenue falls 18.5%

February 03 2009

Manpower Inc. (NYSE: MAN), one of the world's largest staffing firms, announced today that fourth-quarter revenue fell 18.5% year-over-year to $4.59 billion. In constant currency, the decrease was 10.0%.

The fourth quarter included a $37.2 million reorganization charge related to office closures and severance costs in several countries, the company said. However, it also included $62.7 million in income related to a business tax refund and recoverable 2005 payroll taxes in France.

Manpower's fourth-quarter U.S. revenue fell 5.2% to $462.5 million. However, U.S. revenue fell 15% on an organic basis.

"During the fourth quarter, we experienced a rapid decline in demand for our services in the majority of the geographies we operate in," said Chairman and CEO Jeffrey Joerres. "This was not unexpected, and we have positioned ourselves well for this environment. While we have taken action to reduce our expenses, we will not impact our workforce and office infrastructure in a way that would inhibit our ability to help our clients win."

Revenue fell in all Manpower's geographic regions. In France, revenue fell 28.0% to $1.35 billion.

A bright spot, however, was its Right Management outplacement division. It posted a 10.3% increase in revenue year-over-year to $123.0 million in the fourth quarter.

In addition, gross margin for the company rose to 20.8% from 18.6%.

Net income fell 40.5% to $79.2 million — down 34.1% in constant currency.

Full-year 2008 revenue rose 5.1% to $21.55 billion from $20.50 billion in 2007. The increase was 0.5% in constant currency.

Gross margin increased to 19.0% from 18.8%.

Full-year net income, on the other hand, fell 54.8% to $218.9 million — down 59.4% in constant currency.

Manpower Inc. (NYSE: MAN)
For the fourth quarter ended Dec. 31, 2008, compared with the same period in the previous year.
Revenue: $4.59 billion, -18.5%
Net income: $79.2 million, -40.5%

For full-year 2008 compared with the previous year.
Revenue: $21.55 billion, +5.1%
Net income: $218.9 million, -54.8%

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