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US - ManpowerGroup Q2 revenue falls 3%, net income rises 66%

July 19 2013

ManpowerGroup Inc.’s (NYSE: MAN) second-quarter revenue fell 2.9 percent to $5.04 billion, less than the 3 percent to 5 percent decline forecast in its first-quarter report. The world’s third-largest staffing firm also announced a restructuring charge of $20.0 million for office consolidations and severance costs in the second quarter.

“The second quarter results are solid evidence of our team's strong execution of our recalibration efforts and a stabilizing global economy,” said Chairman and CEO Jeffrey Joerres. “We continue to make progress on improving our business mix with our ManpowerGroup Solutions, led by Recruitment Process Outsourcing growing at 19 percent.”

U.S. revenue fell 1.9 percent to $748.5 million.

France, the company’s largest single market, reported a revenue decline of 7.5 percent to $1.32 billion. The decline was 9.1 percent in constant currency.

Joerres said in a conference call with analysts that the company received claims in France from a number of clients that it passed along French payroll tax subsidies received over the last several years related to temporary workers.

“We believe many of these claims came in the quarter due to the change in the statute of limitations that took effect in June,” he said. “We do not believe these claims have merit, as these payroll tax subsidies are intended for the benefit of the direct employer, which we are. We intend to vigorously defend any claims of this nature.”

Second-quarter revenue results by geography included:

  • United States: $748.5 million, down 1.9 percent
  •  Other Americas: $ 387.2 million, down 0.5 percent (up 0.4 percent in constant currency)
  •  France: $1.32 billion, down 7.5 percent (down 9.1 percent in constant currency)
  •  Italy: $278.4 million, up 1.6 percent (down 0.2 percent in constant currency)
  •  Other Southern Europe: $203.0 million, up 6.8 percent (up 3.7 percent in constant currency)
  •  Northern Europe: $1.40 billion, down 1.2 percent (down 1.6 percent in constant currency)
  •  Asia Pacific: $623.3 million, down 6.0 percent (up 1.9 percent in constant currency)
  •  Right Management: $80.9 million, down 3.5 percent (down 2.0 percent in constant currency)

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

The company reported second-quarter net income of $68.2 million, up 66.4 percent (up 69.2 percent in constant currency) from the same quarter last year.

ManpowerGroup forecast a year-over-year decline in third-quarter revenue of between 1 percent and 3 percent.

ManpowerGroup Inc. (NYSE: MAN)
 For the first quarter ended June 30, 2013, compared with the same period a year ago.
 Revenue: $5.04 billion, -2.9 percent
 Net income: $68.2 million, +66.4 percent

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