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ManpowerGroup Q3 Revenue Falls 11%

October 19 2012

ManpowerGroup Inc. (NYSE: MAN) reported third-quarter revenue fell 10.5 percent to $5.17 billion, but the decrease was only 3.8 percent in constant currency. The world’s third-largest staffing firm saw revenue decline across most global markets. However, third-quarter gross margin edged up to 16.6 percent from 16.5 percent in the year-ago quarter.

“Clearly, the economic environment continues to be challenging as we experienced a revenue decline of 4 percent in constant currency,” Chairman and CEO Jeffrey Joerres. “However, the ManpowerGroup team did an extraordinary job of aggressively selling our value to our clients which resulted in stabilizing our gross margin.”

Third-quarter U.S. revenue fell 8.2 percent year over year to $760.8 million. However, revenue at the company’s U.S. franchise locations rose 5.3 percent to $175.8 million. ManpowerGroup includes only fees from franchises in its revenue numbers.

ManpowerGroup reported net earnings in the third quarter of $63.1 million, a 20.8 percent decrease compared to $79.6 million a year earlier.

The company expects fourth-quarter revenue to decline 5 percent to 7 percent, or 3 percent to 5 percent in constant currency, from the fourth quarter of last year.

Joerres said in the conference call with analysts that the company does plan some restructuring in the fourth quarter.

ManpowerGroup Inc. (NYSE: MAN)
 For the third quarter ended Sept. 30, 2012, compared with the same period a year ago
 Revenue: $5.17 billion, -10.5 percent
 Net earnings: $63.1 million, -20.8 percent

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