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View All NewsWorld – ManpowerGroup Q4 revenue rises in Europe, Italy leads growth
ManpowerGroup Inc. (NYSE: MAN) reported fourth-quarter revenue rose 7.3% on a constant currency basis. Revenue rose across Europe with the fastest growth taking place in Italy where revenue rose 28.5% in constant currency. Fourth-quarter revenue in France, the company’s largest single market, rose 12.0% in constant currency.
ManpowerGroup also reported fourth-quarter revenue in its Right Management outplacement segment fell 11.6% in constant currency.
| (US$ millions) | Q4 2017 | Q4 2016 | % change | % constant currency |
| Revenue | $5,637.5 | $4,956.1 | 13.7% | 7.3% |
| Gross profit | $934.5 | $841.0 | 11.1% | 5.4% |
| Gross margin | 16.6% | 17.0% | N/A | N/A |
| Net earnings | $216.3 | $127.4 | 69.7% | 64.3% |
Gross margin narrowed, and the company noted gross profit in its Right Management segment fell 10% in constant currency.
On the other hand, gross profit was up 5% year over year in the company’s Manpower and Experis segments. And gross profit in the ManpowerGroup Solutions segment was up 17% in constant currency — the segment includes RPO, MSP and other business lines.
Net earnings jumped by 64.3% on a constant currency basis. The company said results benefited from the recently passed Tax Cuts and Jobs Act in the US. Excluding the impact of the net tax benefits, net earnings rose by 8% per diluted share on a constant currency basis.
Revenue by Geography was broken down as follows.
| (US$ millions) | Q4 2017 | Q4 2016 | % change | % constant currency |
| Americas | ||||
| United States | $666.3 | $684.7 | -2.7% | -2.7% |
| Other Americas | $405.5 | $378.2 | 7.2% | 6.1% |
| Total Americas | $1,071.8 | $1,062.9 | 0.8% | 0.4% |
| Southern Europe | ||||
| France | $1,501.7 | $1,228.6 | 22.2% | 12.0% |
| Italy | $428.9 | $305.8 | 40.3% | 28.5% |
| Other Southern Europe | $468.4 | $377.8 | 24.0% | 13.9% |
| Total Southern Europe | $2,399.0 | $1,912.2 | 25.5% | 15.0% |
| Northern Europe | $1,418.1 | $1,292.8 | 9.7% | 1.6% |
| Asia Pacific Middle East | $695.2 | $629.6 | 10.4% | 9.1% |
| Right Management | $53.4 | $58.6 | -8.9% | -11.6% |
In the UK, which is included in the Northern Europe region, fourth-quarter daily revenue growth fell 3% on a constant currency basis.
Full-year results
| (US$ millions) | Q4 2017 | Q4 2016 | % change | % constant currency |
| Revenue | $21,034.3 | $19,654.1 | 7.0% | 6.0% |
| Gross profit | $3,484.6 | $3,333.8 | 4.5% | 3.6% |
| Gross margin | 16.6% | 17.0% | N/A | N/A |
| Net earnings | $545.4 | $443.7 | 22.9% | 21.3% |
In Europe, the company forecast first-quarter Southern Europe revenue to be up 10% to 12% in constant currency while Northern Europe revenue will be flat to up 2% in constant currency. Asia Pacific Middle East first-quarter revenue will be up 1% to 3% in constant currency while Right Management first-quarter revenue will be down 11% to 13% in constant currency.
On Friday, ManpowerGroup Inc shares closed at USD 122.50, down 7.36% on the day and 10.54% below its 52-week high of USD 136.93, set on 29 January 2018. Based on its current share price the company has a market value of USD 8.12 billion.