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Manpower third-quarter profit rises 31%

October 17 2007

Manpower Inc. (NYSE: MAN) said third-quarter net income rose 31.0% to $131.7 million, compared with $100.6 million in the same period last year.

Results got an eight-cent per share boost from foreign currency exchange rates, the company said. The company also benefited from a French payroll tax subsidy.

"The Netherlands, Germany, Belgium and Elan — our pan-European IT staffing company — all performed well. Additionally, Right Management, our outplacement and organization consulting company, is showing momentum across all geographies," said Chairman and CEO Jeffrey Joerres. "Although we do detect a bit of caution in the markets, as we look to the fourth quarter, we do not believe it will significantly affect our performance."

Operating profit at Right Management soared 157.4% in the third quarter to $5.7 million from $2.2 million a year ago. Revenue at Right Management rose 9.0% to $98.7.

Overall, revenue at Manpower rose 15.4% in the third quarter to $5.29 billion, compared with $4.59 billion in the third quarter of 2006. Gross margin rose to 18.4% from 17.5%.

However, Manpower said U.S. revenue fell 7.4% to $502.2 million in the third quarter from $542.1 million in the same period last year. Operating profit fell 15.9% in the United States to $24.1 million from $28.6 million in the same period last year.

Revenue at Manpower's Jefferson Wells financial staffing division fell 8.9% to $85.5 million. Operating profit at Jefferson Wells fell to a $1.7 million loss, from net income of $10.0 million in the same period last year.

The company forecast fourth quarter earnings of $1.50 to $1.54 a share.

Shares in Manpower rose 8.3% to $75.06 in mid-morning trading.

Manpower Inc. (NYSE: MAN)

For the third quarter ended Sept. 30, 2007, compared with the same period in 2006.

Revenue: $5.29 billion, +15.4%

Net income: $131.7 million, +31.0%

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