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ManpowerGroup Q1 revenue falls 6%, posts restructuring charge

April 19 2013

ManpowerGroup Inc.’s (NYSE: MAN) first-quarter revenue fell 6.4 percent — in line with guidance of a 6 percent to 8 percent decline — to $4.77 billion. Revenue fell across geographies, with the largest declines in Europe. The world’s third-largest staffing firm also announced a restructuring charge of $34.8 million in the first quarter for office consolidations and severance costs.

“The first quarter performance was largely attributed to slightly stronger than anticipated revenues and tax credits,” said Chairman and CEO Jeffrey Joerres.

“Additionally, our recalibration of our cost base is advancing ahead of schedule,” Joerres said. “Those efforts, which are focused on simplifying our business, were initially rolled out in the fourth quarter of 2012 and continued into the first quarter, resulting in the restructuring charge in the quarter.”

U.S. revenue fell 4.0 percent to $706.1 million. In France, the company’s largest single market, revenue fell 11.3 percent to $1.15 billion; the decline was 11.8 percent in constant currency.

First-quarter revenue results by operating units included:

  • Americas (including U.S.): $1.09 billion, down 4.0 percent (down 3.1 percent in constant currency)
  • France: $1.15 billion, down 11.3 percent (down 11.8 percent in constant currency)
  • Italy: $257.9 million, down 3.6 percent (down 4.1 percent in constant currency)
  • Other Southern Europe: $193.4 million, down 0.9 percent (down 1.9 percent in constant currency)
  • Northern Europe: $1.37 billion, down 5.1 percent (down 5.6 percent in constant currency)
  • Asia Pacific: $632.5 million, down 7.0 percent (down 1.4 percent in constant currency)
  • Right Management: $76.6 million, down 3.8 percent (down 2.5 percent in constant currency)

Global first-quarter gross margin was 16.6 percent, unchanged from the year-ago quarter.

ManpowerGroup reported net income in the first quarter of $23.9 million, down 40.6 percent (down 38.7 percent in constant currency). However, the decline included the office consolidation and severance charge of $34.8 million.

The company forecast a year-over-year decline in second-quarter revenue of between 3 percent and 5 percent.

ManpowerGroup Inc. (NYSE: MAN)
 For the first quarter ended March 31, 2013, compared with the same period a year ago.
 Revenue: $4.77 billion, -6.4 percent
 Net income: $23.9 million, -40.6 percent


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