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View All NewsManpowerGroup Q2 revenue rises 6.6% in constant currency, but falls in US
The strong US dollar affected second-quarter earnings at ManpowerGroup Inc. (NYSE: MAN), one of the world’s largest staffing firms. While revenue fell 8.7% in the second quarter to $4.86 billion, it was up 6.6% when measured in constant currency. Gross margin improved to 17.1% from 16.9% in the year-ago quarter.
Second-quarter revenue was up in constant currency throughout much of the world, rising 25.9% in Italy alone.
However, US second-quarter revenue fell 1.7% to $762.6 million at the Milwaukee-based firm. ManpowerGroup’s US revenue includes only fees from franchise offices, which totaled $3.9 million in the second quarter — unchanged from the year-ago quarter. Revenue at US franchises totaled $184.6 million in the second quarter, down 3.0% from $190.3 million in the second quarter of last year.
| (US$ millions) | Q2 2015 | Q2 2014 | % growth | % constant currency |
| Revenue | $4,861.3 | $5,321.7 | -8.7% | 6.6% |
| Gross profit | $830.6 | $897.3 | -7.4% | 6.7% |
| Gross margin | 17.1% | 16.9% | ||
| Net earnings | $105.7 | $109.8 | -3.7% | 12.6% |
Quote
“We are pleased with our strong second quarter results, capping off a good first half of 2015,” said CEO Jonas Prising. “The labor markets continue to improve across the globe, although at a slow and uneven pace in some countries.”
Prising continued: “It is rewarding for our team to experience solid growth in a number of our geographies, with very strong growth in Italy, Mexico, Spain and the UK. With our market leading brands and solutions we are well placed to take advantage of profitable growth opportunities also in the second half of the year.”
Revenue by geography
| (US$ millions) | Q2 2015 | Q2 2014 | % growth | % constant currency |
| Americas | ||||
| United States | $762.6 | $775.9 | -1.7% | -1.7% |
| Other Americas | $368.1 | $375.2 | -1.9% | 14.4% |
| Total Americas | $1,130.7 | $1,151.1 | -1.8% | 3.5% |
| Southern Europe | ||||
| France | $1,202.6 | $1,412.1 | -14.8% | 5.5% |
| Italy | $319.3 | $313.9 | 1.7% | 25.9% |
| Other Southern Europe | $244.3 | $243.0 | 0.6% | 20.9% |
| Total Southern Europe | $1,766.2 | $1,969.0 | -10.3% | 10.6% |
| Northern Europe | $1,335.6 | $1,527.8 | -12.6% | 4.5% |
| Asia Pacific Middle East | $556.6 | $594.0 | -6.3% | 5.7% |
| Right Management | $72.2 | $79.8 | -9.6% | -1.5% |
Guidance
ManpowerGroup expects third-quarter revenue to fall 6% to 8% (rise 5% to 7% in constant currency).
Share price and market cap
Shares in ManpowerGroup fell 4.45% in early afternoon trading to $90.42. The company had a market cap of $7.07 billion, according to Yahoo!