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Europe — Manpower suffers from sluggish demand

22 October 2009

Manpower Inc. (MAN:NYQ), the US quoted staffing services group, has published interim results for the third quarter of 2009 ending 30 September.

Worldwide group revenues were down by -26% from $5.7 billion in 2008 to $4.2 billion in 2009. The group made an operating loss of -$19 million compared to an operating profit of $21 million in the 2008.


In France revenues from services were down by -30.5% from $1.9 billion in 2008 to $1.3 billion in 2009. In Italy revenues were down by -38.5% from $376 million in 2008 to $231 million in 2009. In other EMEA countries revenues were down by -29.2% from $1.95 billion in 2008 to $1.38 billion in 2009.

Operating profits in France were down by -83.9% from $66.1 million in 2008 to $10.6 million in 2009. In Italy operating profits were down by -70.4% from $29.3 million in 2008 to $8.6 million in 2009. In other EMEA countries operating profits were down by -77.7% from $76.3 million in 2008 to $17.1 million in 2009.

Jeffrey A. Joerres, Manpower Inc. Chairman and Chief Executive Officer, said "we continued to experience sluggish demand for our services as the labour markets throughout the world were hampered by lack of demand for companies' products and services. All of our major operations contributed to our better than expected profitability as revenue across the board was marginally stronger, however, the uptick in revenue is muted at this time compared to previous recoveries."

"The increases that we have seen in our revenue over the last quarter indicate that our decisions to preserve our office network at its current level are appropriate. We will continue to monitor the environment and make modifications if we experience deterioration in the existing trends."

"While the current economic environment makes forecasting demand for our services difficult, we anticipate the fourth quarter of 2009 diluted earnings per share to be in the range of $.17 to $.27, which includes an estimated positive currency impact of 3%," Joerres stated.

In early trading Manpower's shares were down by -13.25% to $52.70.

 

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