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World - ManpowerGroup's profit surges due to European market

22 April 2011

 
Revenues were up by +23.7% from $4.1 billion in Q1 2010 to $5.1 billion in Q1 2011 at ManpowerGroup (NYSE:MAN), the world's third-largest staffing firm. In constant currency, revenues were up by +21.8%.

First quarter results for the three months ended 31 March 2011 reveal that gross profit was up by +22.2% from $701.5 million in Q1 2010 to $857.6 million in Q1 2011. In constant currency gross profit was up by +20.1%.

Operating profit was up by +162.7% from $32.6 million in Q1 2010 to $85.6 million in Q1 2011. In constant currency it was up by +152.3%.

Net earnings were up from $2.8 million in Q1 2010 to $35.7 million in Q1 2011.

In France revenues were up by +22.2% from $1.1 billion in Q1 2010 to $1.35 billion in Q1 2011. In constant currency revenues were up by +23.2%. Operating profit was up from $200,000 in Q1 2010 to $12 million Q1 2011.

In Italy revenues were up by +21.5% from $234.2 million in Q1 2010 to $284.6 million in Q1 2011. In constant currency revenues were up by +22.4%. Operating profit was up by +88.8% from $6.8 million in Q1 2010 to $12.9 million Q1 2011.

In other Southern European countries revenues were up by +13.7% from $158.4 million in Q1 2010 to $180 million in Q1 2011. In constant currency revenues were up by +13.1%. Operating profit was up from a loss of -$900,000 in Q1 2010 to a profit of $2.2 million Q1 2011.

In Northern Europe revenues were up by +19.3% from $1.22 billion in Q1 2010 to $1.45 billion in Q1 2011. In constant currency revenues were up by +16.7%. Operating profit was up by +121.1% from $19 million in Q1 2010 to $241.9 million Q1 2011. In constant currency it was up +112.5%.

In Asia Pacific and the Middle East revenues were up by +21.2% from $497.5 million in Q1 2010 to $602.9 million in Q1 2011. In constant currency revenues were up by +11.2%. Operating profit was up by +31.9% from $12.5 million in Q1 2010 to $16.5 million Q1 2011. In constant currency it was up +21.1%.

Earlier this month, Manpower acquired an information technology resourcing company in India which provides a platform for further growth throughout the Asia Pacific and Middle East region.

Outplacement business, Right Management saw revenues down by -20.9% from $103.3 million in Q1 2010 to $81.8 million in Q1 2011. In constant currency revenues were down by -22.7%. Operating profit was down by -73.5% from $12.5 million in Q1 2010 to $3.3 million Q1 2011. In constant currency it was down by -73.8%.

Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said "ManpowerGroup posted a very solid first quarter, with gains in both revenue and profitability coming from almost all business lines and geographies. Several European and emerging markets showed particularly strong trends."

"During the quarter, we launched the reinvention of the brand with the evolution to ManpowerGroup. We also launched our new brand family and our new professional resourcing company, Experis."

"Additionally, earlier this month we made an acquisition which is strategically significant, an IT resourcing company in India with 5 locations throughout the country. Not only does this give ManpowerGroup a strong foothold in India, but it also is a springboard for growth throughout the Asia Pacific Middle East region."

"We anticipate that favourable trends will continue into the second quarter, resulting in earnings per share of 74 Cents to 82 Cents. This includes a favourable impact of 8 Cents per share related to currency changes in the quarter."

At the close of NYSE trading yesterday, Manpower's shares were up by +6.05% to $68.14.

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