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View All NewsWorld – ManpowerGroup global Q3 revenue up
ManpowerGroup Inc. (NYSE: MAN) reported global revenue rose 2.3% in the third quarter to USD 5.08 billion, an increase of 3.8% in constant currency, exceeding its forecast despite declines in the US, Italy and the Right Management division. Further, demand for solutions remained strong with RPO and MSP services experiencing growth of 19% and 17% at constant currency constant currency respectively.
| (USD millions) | Q3 2016 | Q3 2015 | % growth | % constant currency | Q3 2016 (in euros) |
| Revenue | $5,088.2 | $4,972.5 | 2.3% | 3.8% | €4,533.7 |
| Gross profit | $858.3 | $852.1 | 0.7% | 1.9% | €764.8 |
| Gross margin | 16.9% | 17.1% | |||
| Net earnings | $129.2 | $123.9 | 4.3% | 6.0% | € 115.1 |
Revenue rose 2.5% in constant currency in France, ManpowerGroup’s largest market. The Brexit vote did not yet have a significant impact on the company’s UK business in the third quarter, Chairman and CEO Jonas Prising said in a conference call with analysts.
| (US$ millions) | Q3 2016 | Q3 2015 | % growth | % constant currency | Q3 2016 (in euros) |
| Americas | |||||
| United States | $723.7 | $769.6 | -6.0% | -6.0% | € 644.8 |
| Other Americas | $383.7 | $367.0 | 4.5% | 15.7% | € 341.9 |
| Total Americas | $1,107.4 | $1,136.6 | -2.6% | 1.0% | € 986.7 |
| Southern Europe | |||||
| France | $1,277.8 | $1,242.5 | 2.8% | 2.5% | € 1,138.5 |
| Italy | $299.0 | $324.4 | -7.8% | -8.1% | € 266.4 |
| Other Southern Europe | $389.5 | $364.4 | 6.9% | 6.6% | € 347.1 |
| Total Southern Europe | $1,966.3 | $1,931.3 | 1.8% | 1.5% | € 1,752.0 |
| Northern Europe | $1,300.1 | $1,267.5 | 2.6% | 8.8% | € 1,158.4 |
| Asia Pacific Middle East | $650.9 | $570.2 | 14.1% | 6.5% | € 580.0 |
| Right Management | $63.5 | $66.9 | -5.0% | -3.7% | € 56.6 |
Currency negatively impacted revenue by 2%, and acquisitions contributed about 2% to the company growth rate in the quarter, CFO Jack McGinnis said in a conference call with analysts. As a result, organic growth on a constant currency basis was 2% in the third quarter.
Revenue’s exceeding of guidance was largely driven by better-than-expected revenue growth in Northern and Southern Europe, McGinnis said.
“While the market conditions remain mixed, I'm encouraged to see slightly better revenue performance than what we expected across a number of markets around the world,” Chairman and CEO Jonas Prising said in a conference call with analysts. “We remain in a slow-growth environment, one in which we are very well-positioned to take advantage of the many opportunities our clients are presenting to us.”
Full Year Results:
| (USD millions) | 2015 | 2014 | % growth | % constant currency |
| Revenue | $20,762.8 | $20,250.5 | 2.5% | 4.0% |
| Gross profit | $3,488.2 | $3,366.7 | 3.6% | 5.2% |
| Gross margin | 16.8% | 16.6% | ||
| Net earnings | $427.6 | $288.0 | 48.5% | 51.4% |
ManpowerGroup forecast fourth-quarter revenue to range from flat to rising 2%. In constant currency, the company expects revenue to increase from 1% to 3%.
Fourth-quarter revenue guidance by region:
- Americas, down 4% to 6% (down 1% to up 1% in constant currency)
- Southern Europe, up 3% to 5% (up 1% to 3% in constant currency)
- Northern Europe, down 3% to 5% (up 2% to 4% in constant currency)
- Asia Pacific Middle East, up 13% to 15% (up 4% to 6% in constant currency)
- Right Management, down 5% to 7% (down 4% to 6% in constant currency)
Fourth-quarter gross margin is forecast to be between 16.8% and 17.0%.
In trading Friday, ManpowerGroup Inc closed at USD 79.99, up 9.71% on the day and 14.30% below its 52-week high of USD 93.34, set on 4 November 2015. Based on its current share price the company has a market value of USD 5.48 billion.