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Manpower Inc - favourable economic trends will continue

Manpower Inc - favourable economic trends will continue

Manpower Inc. has reported that net earnings for the three months ended March 31, 2010 were $2.8 million, or 4 cents per diluted share, compared to a loss of $1.8 million, or 2 cents per diluted share, a year earlier. Revenues for the first quarter were $4.1 billion, an increase of 13% from the year earlier period, or 5% in constant currency.

Net earnings in the first quarter were favourably impacted by 3 cents per diluted share, as foreign currencies were relatively stronger compared to the prior year period.

In December 2009 the French government published changes to its business tax law effective in 2010. Under the new law, a component of the business tax calculation is based upon added value (revenue less expenses as defined in the legislation). Under U.S. Generally Accepted Accounting Principles (GAAP), a tax of this nature is classified as a component of the income tax provision. Accordingly, the charge of $13.7 million related to this business tax was included in our provision for income taxes in the quarter. Previously this amount would have been classified as a component of Cost of Services. The amount of the business tax did not change materially as a result of the new calculation and, therefore, net earnings were not impacted.

Jeffrey A. Joerres, Manpower Inc. Chairman and Chief Executive Officer, said, "The Manpower team throughout the world performed extremely well. We were able to exceed our anticipated revenue plans while we effectively managed our expenses. In all major geographies we are experiencing strong cyclical trends and even stronger secular trends as companies need to respond to the increased demand but want to remain agile.

"Our major geographies, the U.S., France, Germany, U.K. and others, all have stronger revenue trajectories exiting the first quarter.

"In early April we completed the acquisition of COMSYS IT Partners, Inc. This acquisition is an important component of our strategy, when coupled with our organic growth, as we aggressively expand our presence in the specialty staffing area.

"We anticipate that favorable economic trends will continue into the second quarter, resulting in earnings per share of 14 cents to 22 cents. This includes a negative impact of 10 cents per share related to the COMSYS acquisition. We anticipate the impact of currency changes on the quarter will be negligible."

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