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ManpowerGroup revenue rises 4%, still seeing growth opportunities

October 21, 2014

ManpowerGroup (NYSE: MAN) reported revenue rose 4.4 percent (4.6 percent in constant currency) in the third quarter to $5.42 billion. US revenue at the Milwaukee-based staffing firm also rose year over year in the third quarter ended Sept. 30.

In the US, third-quarter revenue rose 5.1 percent to $800.5 million from to $761.8 million in the third quarter of last year. The company’s US revenue includes only the fees received from its franchise offices, which totaled $6.9 million for the third quarter. However, Manpower reported third-quarter revenue at the franchise offices rose 5.8 percent year over year to $302.0 million.

Gross margin rose to 16.7 percent from 16.5 percent in the same quarter year prior.

ManpowerGroup’s second-quarter net earnings climbed 37.8 percent (37.4 percent in constant currency) to $130.5 million from $94.7 million in the third quarter of last year. The prior year’s third quarter results included an $8.1 million restructuring charge, primarily related to office consolidations and severance costs; there were no restructuring charges in the current year quarter.

ManpowerGroup ranks as the third-largest global staffing firm and the fourth-largest US staffing firm by Staffing Industry Analysts.

Quote

“Our third quarter results were strong, with solid revenue and profit growth in the majority of our operations and brands,” said CEO Jonas Prising. “While the economic recovery has recently become more choppy in some markets, we are still seeing growth opportunities and I am confident we are well positioned to deliver unique value to our clients in these uncertain times.”

Revenue

  Q3 2014 (millions) Q3 2013 (millions) % growth % constant currency
Revenue $5,416.0 $5,188.8 4.4% 4.6%

Revenue by geography

  Q3 2014 (millions) Q3 2013 (millions) % growth % constant currency
Americas        
United States $800.5 $761.8 5.1% 5.1%
Other Americas $388.5 $382.0 1.7% 9.5%
Total Americas $1,189.0 $1,143.8 4.0% 6.5%
         
Southern Europe        
France $1,454.3 $1,420.7 2.4% 2.2%
Italy $294.1 $269.7 9.0% 9.0%
Other Southern Europe $259.9 $227.9 14.1% 13.8%
Total Southern Europe $2,008.3 $1,918.3 4.7% 4.5%
         
Northern Europe $1,554.6 $1,448.1 7.4% 6.2%
         
Asia Pacific Middle East $592.5 $601.4 -1.5% -0.7%
         
Right Management $71.6 $77.2 -7.2% -8.0%

Gross margin

  Q3 2014  Q3 2013 
Gross margin 16.7% 16.5%

Net earnings

  Q3 2014 (millions) Q3 2013 (millions) % growth % constant currency
Net earnings $130.5 $94.7 37.8% 37.4%

Guidance

ManpowerGroup expect fourth-quarter revenue to decrease 1 percent to 3 percent (up 2 percent to 4 percent in constant currency). It expects Americas revenue to rise 2 percent to 4 percent (up 5 percent to 7 percent in constant currency).

Share price and market cap

Shares in ManpowerGroup rose 1.96 percent in late morning trading to $62.88. ManpowerGroup has a market cap of approximately $5.01 billion, according to Yahoo!