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ManpowerGroup (NYSE: MAN) revenue rose 1.0 percent in the fourth quarter to $5.25 billion amid a more positive environment in Europe. However, U.S. revenue was flat in the fourth quarter, and the Milwaukee-based staffing giant is taking a cautious approach toward global first-quarter revenue.
The company also posted a restructuring charge of $26.5 million in the fourth quarter.
“We were able to achieve the upper end of our revenue targets as we are experiencing a slightly more positive environment, particularly in Europe,” said Chairman and CEO Jeff Joerres. “This said, while we are gaining increased confidence, we remain guarded on revenue growth in the first quarter.”
ManpowerGroup shares fell 2.75 percent in early afternoon trading.
In the U.S., fourth-quarter revenue was $750.6 million, roughly flat compared to $750.7 million in the fourth quarter of the previous year. The company’s U.S. revenue includes only franchise fees from its franchised offices. The company did report revenue at the franchise offices rose by 7.4 percent in the fourth quarter to $183.6 million.
Revenue rose across Europe with the largest growth in its “other Southern Europe” category, which includes the company’s Southern European markets outside of France and Italy. Other Southern Europe revenue rose 23.9 percent to $240.2 million.
France, ManpowerGroup’s largest single market, posted a 6.4 percent increase in fourth-quarter revenue to $1.39 billion. And Italian revenue rose 4.9 percent to $281.6 million.
Northern Europe revenue at ManpowerGroup also rose 2.3 percent to $1.52 billion.
However, fourth-quarter revenue fell in other divisions. “Other Americas” fourth-quarter revenue fell 4.5 percent to $387.1 million. Asia Pacific Middle East revenue fell 15.4 percent to $590.5 million, and Right Management revenue fell 3.3 percent to $82.1 million.
Fourth-quarter net income jumped 90.0 percent to $101.2 million. The company posted a restructuring charge of $26.5 million in the fourth quarter, but it had a restructuring charge of $26.6 million in the fourth quarter of the previous year.
ManpowerGroup recorded diluted earnings per share of $1.25 in the fourth quarter, up from 68 cents in the year-ago quarter. Excluding the restructuring charges, diluted EPS was $1.49 in the fourth quarter and 91 cents in the year-ago quarter.
The company also reported that foreign currencies favorably impacted diluted EPS by 1 cent.
Fourth-quarter gross margin was 16.9 percent, unchanged from the fourth quarter of the previous year.
ManpowerGroup forecast first-quarter revenue will range from being flat to up 2 percent.
Market cap for ManpowerGroup was $6.10 billion, according to Yahoo!
Full-year 2013 revenue was $20.25 billion, down 2.1 percent. Full-year net income, however, rose 45.8 percent to $288.0 million. Gross margin was unchanged at 16.6 percent.
ManpowerGroup ranks No. 3 on Staffing Industry Analysts’ list of largest global staffing firms.