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View All NewsManpowerGroup Q1 revenue slips, but still up 6.6% in constant currency
Revenue at ManpowerGroup Inc. (NYSE: MAN) fell 7.4% in the first quarter to $4.54 billion but rose 6.6% in constant currency. The Milwaukee-based staffing firm reported financial results in the quarter were significantly impacted by the stronger US dollar relative to several foreign currencies compared to the prior year’s first quarter.
| (US$ millions) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Revenue | $4,542.2 | $4,904.0 | -7.4% | 6.6% |
| Gross profit | $762.2 | $816.5 | -6.7% | 6.7% |
| Gross margin | 16.8% | 16.6% | ||
| Net earnings | $65.7 | $70.1 | -6.3% | 12.8% |
Quote
“2015 is off to a strong start as we built on the progress we made last year delivering good results in the first quarter,” said CEO Jonas Prising. “It is encouraging to see the early signs of more broad-based improvement in Europe, setting the stage for what we believe could be a slow but sustained labor market recovery in that region. The strong start to the year gives us confidence that we are on the right track and that our focus on permanent recruitment and our market leading solutions offerings continues to pay off. We are well placed to seize further opportunities as economic trends improve.”
Milwaukee-based ManpowerGroup, the third-largest global staffing firm, reported US revenue edged up 0.6% in the first quarter to $725.1 billion. The company’s US revenue includes only the fees received from its franchise offices, which totaled $3.4 million for the first quarter, unchanged from the first quarter of 2014. Manpower reported first-quarter revenue at the franchise offices of $168.7 million compared to $169.1 million in the first quarter of 2014.
ManPowerGroup reported revenue fell in its largest single geography, France, by 14.5% (up 4.2% in constant currency) to $1.04 billion but was up 4.2% in constant currency.
Revenue by geography
| (US$ millions) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Americas | ||||
| United States | $725.1 | $720.5 | 0.6% | 0.6% |
| Other Americas | $359.3 | $350.6 | 2.5% | 16.1% |
| Total Americas | $1,084.4 | $1,071.1 | 1.2% | 5.7% |
| Southern Europe | ||||
| France | $1,040.8 | $1,217.3 | -14.5% | 4.2% |
| Italy | $270.1 | $274.7 | -1.7% | 20.0% |
| Other Southern Europe | $226.2 | $230.0 | -1.7% | 16.7% |
| Total Southern Europe | $1,537.1 | $1,722.0 | -10.7% | 8.4% |
| Northern Europe | $1,323.3 | $1,463.9 | -9.6% | 7.6% |
| Asia Pacific Middle East | $533.1 | $573.7 | -7.1% | 2.1% |
| Right Management | $64.3 | $73.3 | -12.2% | -4.8% |
Share price and market cap
Shares in ManpowerGroup rose fell 0.48% in early afternoon trading to $84.59. The company had a market cap of $6.62 billion, according to Yahoo!