Manpower Net Earnings Show Downturn
Manpower Inc. has reported that net earnings for the three months ended March 31, 2009 were $2.3 million, compared to $75.5 million, , a year earlier. Revenues for the first quarter were $3.6 billion, a decrease of 32% from the year earlier period, or a decrease of 22% in constant currency.
Included in the first quarter results is a reorganization charge of $6.9 million ($4.3 million after tax,), primarily related to severances, office closures and consolidations. Currency changes had a negligible impact on net earnings in the quarter.
Jeffrey A. Joerres, Manpower Inc. Chairman and Chief Executive Officer, said, "The continued deterioration of the labor markets throughout the world has put pressure on our profitability. Our team has performed well in reducing our operating costs, while at the same time maintaining the appropriate geographical presence.
"In the U.S. and French markets, we have experienced revenue stability over the last five weeks, which is the longest string of revenue stability in the U.S. in four quarters. The European geography, in general, has declined and continued to do so throughout the first quarter.
"Our career transition and organizational consulting company, Right Management, had an outstanding quarter - assisting over 60,000 people worldwide to prepare for new careers while contributing significant earnings.
"We anticipate that, despite the difficult economic environment, we will maintain profitability in the second quarter."