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ManpowerGroup revenue edges up, cites improving trends in Europe

October 21 2013

Third-quarter revenue rose 0.3 percent at ManpowerGroup Inc. (NYSE: MAN), one of the world’s largest staffing firms, to $5.19 billion. Revenue was better than guidance, which called for a decrease of 1 percent to 3 percent. ManpowerGroup revenue was above guidance in all geographies except for Asia Pacific and the Middle East. However, on a constant currency basis, revenue fell 0.3 percent.

“We continue to experience positive momentum in all of the established strategic focus areas,” said Chairman and CEO Jeffrey Joerres. “Our European operations’ revenue experienced slow but steadily improving trends.”

Third-quarter gross margin narrowed to 16.5 percent from 16.6 percent in the year-ago quarter, and was at the low end of expectations, according to a conference call between analysts and management. Permanent placement was a drag on gross margin, and the perm business continues to be sluggish in Europe and Asia, according to the company.

Operating profit rose 37.1 percent in the third quarter.

Revenue by geography included:

  • Americas revenue fell 0.5 percent to $1.14 billion. The decrease beat projections of a decline of 1 percent to 3 percent. The decline occurred in the company’s “other Americas” division where revenue fell 1.6 percent. Third-quarter revenue rose 0.1 percent in the U.S. to $761.8 million.
  • Southern Europe revenue rose 4.9 percent in the third quarter, above guidance of being flat to down 2 percent. In France, the company’s largest single market, revenue rose 2.1 percent to $1.42 billion, but was down 3.6 percent in constant currency.
  • In Northern Europe, revenue rose 1.5 percent to $1.45 billion; it was above guidance of revenue being flat to down 2 percent. However, revenue fell 3 percent in the U.K. (down 1 percent in constant currency) and fell 1 percent in the Nordics (down 2 percent in constant currency). However, revenue rose elsewhere in Northern Europe.
  • In Asia Pacific and the Middle East, revenue fell 12.6 percent to $601.4 million; the company had projected revenue to be down just 8 percent to 10 percent. Japan third-quarter revenue fell 22 percent and was down 2 percent in constant currency. Australia/New Zealand revenue fell 16 percent and was down 5 percent in constant currency.
  • Right Management revenue fell 3.6 percent to $77.2 million.

ManpowerGroup reported third-quarter net income of $94.7 million, up 50.2 percent from the same quarter last year. The company said the quarter included a restructuring charge of $8.1 million related to office consolidations and severance costs.

ManpowerGroup Inc. (NYSE: MAN)  
For the third quarter ended Sept. 30, 2013, compared with the same period a year ago.
Revenue: $5.19 billion, +0.3 percent

Net income: $94.7 million, +50.2 percent

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