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Sluggish Demand For Manpower

Sluggish Demand For Manpower

Manpower Inc. has reported its Q3 figures for the three months ended September 30, 2009. Revenues for the third quarter were $4.2 billion, a decrease of 26% from the year earlier period, or a decrease of 22% in constant currency.

Third quarter 2009 results include a loss on the sale of an equity investment and a goodwill impairment charge totalling $71.3 million ($66.3 million after tax) or 84 cents per diluted share. Also included in third quarter results is a $7.5 million ($4.6 million after tax) or 6 cents per diluted share charge related to the repayment of our revolver borrowings and the extinguishment of an interest rate swap agreement in October. Excluding these charges, third quarter net earnings would have been $20.5 million, or 26 cents per diluted share.

Third quarter results were unfavourably impacted by 2 cents per diluted share as foreign currencies were relatively weaker compared to the third quarter of 2008.

Third quarter 2008 results include a goodwill and intangible asset impairment charge of $163.1 million ($154.6 million after tax) or $1.97 per diluted share.

Jeffrey A. Joerres, Manpower Inc. Chairman and Chief Executive Officer, said, "We continued to experience sluggish demand for our services as the labor markets throughout the world were hampered by lack of demand for companies' products and services. All of our major operations contributed to our better than expected profitability as revenue across the board was marginally stronger, however, the uptick in revenue is muted at this time compared to previous recoveries.

"The increases that we have seen in our revenue over the last quarter indicate that our decisions to preserve our office network at its current level are appropriate. We will continue to monitor the environment and make modifications if we experience deterioration in the existing trends.

"While the current economic environment makes forecasting demand for our services difficult, we anticipate the fourth quarter of 2009 diluted earnings per share to be in the range of $.17 to $.27, which includes an estimated positive currency impact of 3 cents," Joerres stated.

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