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ManpowerGroup Hit By Currency Impact

ManpowerGroup Hit By Currency Impact

ManpowerGroup has reported that earnings per diluted share for the three months ended September 30, 2012 were 79 cents compared to 97 cents in the prior year period. Net earnings in the quarter were $63.1 million compared to $79.6 million a year earlier. Revenues for the third quarter were $5.2 billion, a decrease of 11 percent from the prior year period, or a decrease of 4 percent in constant currency.

Third quarter results were unfavorably impacted by 6 cents per diluted share, as foreign currencies were relatively weaker compared to the third quarter of 2011.

Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, "Clearly, the economic environment continues to be challenging as we experienced a revenue decline of 4 percent in constant currency. However, the ManpowerGroup team did an extraordinary job of aggressively selling our value to our clients which resulted in stabilizing our gross margin. Additionally, we were extremely vigilant regarding cost and efficiency. Both contributed nicely to the third quarter performance. We will continue to pursue efficient models to deliver our service while creating more agility throughout the entire organization.

"We are anticipating the fourth quarter of 2012 diluted earnings per share to be in the range of 72 cents to 80 cents, which includes an estimated unfavorable currency impact of 1 cent. This is before considering anticipated reorganization charges," Joerres stated.

ManpowerGroup

Results of Operations

(In millions, except per share data)

Three Months Ended September 30

% Variance

Amount

Constant

2012

2011

Reported

Currency

(Unaudited)

Revenues from services (a)

$5,172.3

$5,782.3

-10.5%

-3.8%

Cost of services

4,316.1

4,831.0

-10.7%

-3.7%

Gross profit

856.2

951.3

-10.0%

-3.9%

Selling and administrative expenses

737.6

793.3

-7.0%

-0.9%

Operating profit

118.6

158.0

-25.0%

-18.7%

Interest and other expenses

10.1

11.0

-8.7%

Earnings before income taxes

108.5

147.0

-26.2%

-20.1%

Provision for income taxes

45.4

67.4

-32.6%

Net earnings

$ 63.1

$ 79.6

-20.8%

-14.2%

Net earnings per share - basic

$ 0.79

$ 0.97

-18.6%

Net earnings per share - diluted

$ 0.79

$ 0.97

-18.6%

-12.4%

Weighted average shares - basic

79.5

81.7

-2.7%

Weighted average shares - diluted

80.0

82.4

-2.9%

(a)

Revenues from services include fees received from our franchise offices of $6.4 million and $7.2 million for the three months ended September 30, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $270.5 million and $293.9 million for the three months ended September 30, 2012 and 2011, respectively.

 

 

 

 

ManpowerGroup

Operating Unit Results

(In millions)

Three Months Ended September 30

% Variance

Amount

Constant

2012

2011

Reported

Currency

(Unaudited)

Revenues from Services:

Americas:

United States(a)

$ 760.8

$ 828.9

-8.2%

-8.2%

Other Americas

388.3

381.1

1.9%

8.1%

1,149.1

1,210.0

-5.0%

-3.1%

Southern Europe:

France

1,392.0

1,670.3

-16.7%

-5.7%

Italy

246.8

321.0

-23.1%

-13.3%

Other Southern Europe

189.2

206.9

-8.5%

2.8%

1,828.0

2,198.2

-16.8%

-6.0%

Northern Europe

1,426.9

1,595.6

-10.6%

-3.5%

APME

688.2

701.0

-1.8%

0.2%

Right Management

80.1

77.5

3.4%

6.4%

$5,172.3

$5,782.3

-10.5%

-3.8%

Operating Unit Profit:

Americas:

United States

$ 24.5

$ 32.1

-23.7%

-23.7%

Other Americas

10.9

10.6

3.3%

6.1%

35.4

42.7

-17.1%

-16.4%

Southern Europe:

France

17.7

27.9

-36.7%

-27.6%

Italy

9.4

19.1

-51.0%

-45.0%

Other Southern Europe

2.2

3.0

-28.5%

-20.0%

29.3

50.0

-41.6%

-33.7%

Northern Europe

42.5

62.8

-32.3%

-27.6%

APME

20.8

21.7

-4.0%

-1.6%

Right Management

5.6

(1.9)

N/A

N/A

133.6

175.3

Corporate expenses

(24.5)

(29.9)

Intangible asset amortization expense

(9.2)

(9.9)

Reclassification of French business tax

18.7

22.5

Operating profit

118.6

158.0

-25.0%

-18.7%

Interest and other expenses (b)

(10.1)

(11.0)

Earnings before income taxes

$ 108.5

$ 147.0

(a)

In the United States, revenues from services include fees received from our franchise offices of $3.9 million for the three months ended September 30, 2012 and 2011. These fees are primarily based on revenues generated by the franchise offices, which were $175.8 million and $166.9 million for the three months ended September 30, 2012 and 2011, respectively.

 

 

 

 

(b)

The components of interest and other expenses were:

2012

2011

Interest expense

$ 10.3

$ 11.2

Interest income

(1.5)

(2.0)

Foreign exchange losses

0.3

1.7

Miscellaneous expense, net

1.0

0.1

$ 10.1

$ 11.0

ManpowerGroup

Results of Operations

(In millions, except per share data)

Nine Months Ended September 30

% Variance

Amount

Constant

2012

2011

Reported

Currency

(Unaudited)

Revenues from services (a)

$15,475.4

$16,522.0

-6.3%

-0.7%

Cost of services

12,910.1

13,750.9

-6.1%

-0.3%

Gross profit

2,565.3

2,771.1

-7.4%

-2.4%

Selling and administrative expenses

2,258.5

2,376.7

-5.0%

-0.1%

Operating profit

306.8

394.4

-22.2%

-16.1%

Interest and other expenses

33.2

33.9

-2.2%

Earnings before income taxes

273.6

360.5

-24.1%

-18.0%

Provision for income taxes

129.3

172.5

-25.1%

Net earnings

$ 144.3

$ 188.0

-23.2%

-17.0%

Net earnings per share - basic

$ 1.81

$ 2.30

-21.3%

Net earnings per share - diluted

$ 1.79

$ 2.26

-20.8%

-14.6%

Weighted average shares - basic

79.9

81.9

-2.4%

Weighted average shares - diluted

80.6

83.3

-3.2%

 

 

 

 

(a)

Revenues from services include fees received from our franchise offices of $17.9 million and $18.8 million for the nine months ended September 30, 2012 and 2011, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $794.4 million and $818.0 million for the nine months ended September 30, 2012 and 2011, respectively.

ManpowerGroup

Operating Unit Results

(In millions)

Nine Months Ended September 30

% Variance

Amount

Constant

2012

2011

Reported

Currency

(Unaudited)

Revenues from Services:

Americas:

United States(a)

$ 2,259.8

$ 2,371.4

-4.7%

-4.7%

Other Americas

1,180.0

1,122.3

5.1%

12.0%

3,439.8

3,493.7

-1.5%

0.7%

Southern Europe:

France

4,111.4

4,668.1

-11.9%

-3.0%

Italy

788.3

950.5

-17.1%

-9.0%

Other Southern Europe

574.5

580.6

-1.0%

8.5%

5,474.2

6,199.2

-11.7%

-2.9%

Northern Europe

4,286.7

4,618.5

-7.2%

-0.8%

APME

2,031.1

1,966.7

3.3%

3.7%

Right Management

243.6

243.9

-0.1%

2.4%

$15,475.4

$16,522.0

-6.3%

-0.7%

Operating Unit Profit:

Americas:

United States

$ 39.1

$ 68.0

-42.5%

-42.5%

Other Americas

36.7

35.7

2.9%

8.4%

75.8

103.7

-26.9%

-25.0%

Southern Europe:

France

38.7

64.7

-40.2%

-32.7%

Italy

36.5

54.4

-32.9%

-26.6%

Other Southern Europe

8.7

7.9

8.7%

19.0%

83.9

127.0

-34.0%

-26.8%

Northern Europe

125.6

160.8

-21.9%

-16.9%

APME

62.2

57.1

9.1%

9.9%

Right Management

5.2

4.2

23.2%

9.6%

352.7

452.8

Corporate expenses

(73.7)

(92.4)

Intangible asset amortization expense

(27.4)

(28.9)

Reclassification of French business tax

55.2

62.9

Operating profit

306.8

394.4

-22.2%

-16.1%

Interest and other expenses (b)

(33.2)

(33.9)

Earnings before income taxes

$ 273.6

$ 360.5

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