ManpowerGroup Inc. (NYSE: MAN) said labor employers in North America and Europe remain cautious as it announced its first-quarter results today. Revenue at the Milwaukee-based global staffing firm fell 5.5% year over year in constant currency to $4.40 billion. 

“Employers in North America and Europe remain cautious as they wait for signs that the economic environment is on a sustainable path of improvement,” ManpowerGroup Chairman and CEO Jonas Prising said in a press statement. “In some of those markets, demand for staffing and permanent recruitment stabilized at lower levels, while demand across Latin America and Asia Pacific Middle East remained solid. We continue to prioritize the execution of our strategic initiatives and are accelerating sales activities to drive profitable growth when demand trends strengthen.” 

The company reported net earnings fell 46.4% to $39.7 million year over year. The quarter included losses related to the run-off Proservia Germany business and minor Argentina-related currency translation losses. 

Gross margin was 17.3% in the first quarter, down from 18.2% a year ago. 

In a conference call with investors, Prising pointed continued stabilization in various key markets, most notably in the US and the UK, and in some other European markets, though at lower levels.  

Americas segment revenue in the quarter, which comprised 23% of consolidated revenue, was $1.0 billion, representing a decrease of 1% compared to the prior year period on a constant currency basis.  

The US, the largest country in the Americas segment, was $680 million during the quarter, representing an 8% days-adjusted decrease compared to the prior year. 

Revenue by Business Line 

• Manpower revenue fell 3% year over year on a constant currency and organic basis in the first quarter. The rate of decline was modest, stable from the fourth-quarter trend. 
• Experis revenue fell 11% year over year on a constant currency and organic basis in the first quarter. The rate of decline was stable from the fourth-quarter trend, reflecting improvement in the US trend offset by decreases in continental Europe. 
• Talent solutions revenue fell 11% on a constant currency and organic basis in the first quarter, driven by RPO, where the revenue rate of decline was stable from the fourth-quarter trend. MSP reported flat revenue, representing an improvement from the fourth-quarter trend, while Right Management revenue growth remained solid due to increased outplacement activity. 

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Guidance

For the second quarter, ManpowerGroup forecasts: 

• Total revenue to be down between 5% and 9% (down between 2% and 6% in constant currency) 
• Americas revenue to be down between 5% and 9% (up 4% to flat in constant currency) 
• Southern Europe revenue to be down between 4% and 8% (down between 2% and 6% in constant currency) 
• Northern Europe revenue to be down between 8% and 12% (down between 7% and 11%) 
• Asia Pacific Middle East revenue to be down between 6% and 10% (down between 1% and 5% in constant currency) 
• Gross profit margin, between 17.5% and 17.7% 

Share price 

Shares in ManpowerGroup were up 6.37% to $74.54 as of 11:56 a.m. Eastern time today; 10.67% above the 52 week low of $67.35 set on Oct. 19, 2023, according to FT.com.