Manpower Results & Acquisitions
Manpower Inc. has reported its Q4 and full year results and announced the acquisition of Comsys.
Manpowers earnings in the quarter decreased to $29.1 million from $76.0 million a year earlier on Revenues of $4.4 billion, a decrease of 4% from the year earlier period, or a decrease of 12% in constant currency.
Included in the fourth quarter results is a $12.7 million ($9.0 million after tax) reorganization charge, primarily related to office closures and consolidations, and severance costs.
Jeffrey A. Joerres, Manpower Inc. Chairman and CEO, said, "We continue to see solid evidence of improving trends in nearly all geographies we operate in. Each week that passes, we are more confident about the sustainability of the recovery. The U.S. is experiencing the highest level of year-over-year growth trends. As we look to the first quarter of 2010, we are anticipating positive year-over-year revenue growth for the company as a whole, which is the first time since the third quarter of 2008.
Net earnings for the year ended December 31, were a loss of $9.2 million compared to earnings of $205.5 million in the prior year. Revenues for the year were $16.0 billion, a decrease of 26% from the prior year, or 21% in constant currency.
During the fourth quarter, the company became aware that it had prematurely recognized revenue related to a workforce solutions contract in 2007, 2008 and the 9 month period ended September 30, 2009. As a result, operating results have been restated for these periods, resulting in a reduction of revenues and operating profit of $14.2 million, $15.7 million and $9.7 million, respectively.
Manpower Inc. has entered into an agreement to acquire COMSYS IT Partners, Inc, a leading professional staffing firm. The agreement has been approved by the boards of directors of both companies. Subject to the terms of the agreement, the value of the consideration for each outstanding share of COMSYS common stock would be $17.65, for a total enterprise value of $431 million, including net debt assumed by Manpower.
COMSYS' professional IT staffing services will be integrated into the Manpower Professional offering, and when combined with Elan, Manpower's European IT staffing business, creates an entity with total revenues of more than $2.5 billion. The combined entities increase Manpower's professional consultants on assignment to over 25,000. With 4,000 offices around the globe, the addition of COMSYS increases Manpower's professional staffing services geographic footprint to more than 400 offices worldwide.
"The acquisition of COMSYS is consistent with our strategy and strengthens the continued expansion of our professional staffing services and outcome-based solutions," said Jeff Joerres, Manpower Inc. Chairman and CEO. "Both are areas where we have significantly grown organically over the past few years, driven by our strategy to provide clients with all the talent they need, particularly in the high demand skill verticals of IT, engineering, finance and accounting."