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Manpower third-quarter revenue falls 26%

October 21 2009
Staffing Industry Analysts North American Daily News

Third-quarter revenue at Manpower Inc. (NYSE: MAN) fell 26.0% to $4.19 billion from $5.67 billion in the same period a year ago. The decline was 21.5% on a constant currency basis.

"We continued to experience sluggish demand for our services as the labor markets throughout the world were hampered by lack of demand for companies' products and services," Chairman and CEO Jeffrey Joerres said in a statement. "All of our major operations contributed to our better than expected profitability as revenue across the board was marginally stronger, however, the uptick in revenue is muted at this time compared to previous recoveries."

Manpower's third-quarter gross margin narrowed to 16.9% from 18.1%.

U.S. revenue fell 21.2% to $409.8 million from $519.8 million in the third quarter of 2008.

Third-quarter revenue at franchise offices in the U.S. fell 30.7% to $121.6 million from $175.4 million in the same period last year.

Manpower's permanent recruitment business was down 59%, Joerres said in a conference call with analysts. Its U.S. permanent recruiting business was down 65% year over year.

Right Management, Manpower's outplacement division, posted a 25.4% increase in revenue to $135.7 million in the third quarter from $108.3 million in the same period last year.

Jefferson Wells' third-quarter revenue fell 34.9% to $48.3 million from the year-ago quarter.

The company posted a net loss of $50.4 million in the third quarter compared with $43.2 million in the year-ago quarter.

Manpower reported the third quarter included a goodwill and intangible asset impairment charge of $61.0 million related to an investment in its Jefferson Wells division. The third quarter of 2008 also had a goodwill and intangible asset impairment charge of $163.1 million related to Right Management.

For the fourth quarter, Manpower reported revenue will be down 9% to 11% from the fourth quarter of last year. In its Americas division, which includes the U.S. and other countries, Manpower estimates revenue will fall 10% to 13%.

However, Manpower said it expects fourth-quarter earnings per share of 17 cents to 27 cents.

Manpower Inc. (NYSE: MAN)
For the third quarter ended Sept. 30, 2009, compared with the same period in 2008.
Revenue: $4.19 billion, -26.0%
Net loss: $50.4 million vs. net loss of $43.2 million

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