ManpowerGroup reports Q2 and H1 2015 results
Net earnings in the second quarter were $105.7 million compared to $109.8 million a year earlier. Revenues for the second quarter were $4.9 billion, a decrease of 9 percent from the prior year period.
Financial results in the quarter were significantly impacted by the stronger U.S. dollar relative to several foreign currencies compared to the prior year period. On a constant currency basis, revenues increased 7% and earnings per share increased 16%. Earnings per share in the quarter were negatively impacted 23 cents by changes in the foreign currencies compared to the prior year.
ManpowerGroup CEO Jonas Prising, said, "We are pleased with our strong second quarter results, capping off a good first half of 2015. The labor markets continue to improve across the globe, although at a slow and uneven pace in some countries.
"It is rewarding for our team to experience solid growth in a number of our geographies, with very strong growth in Italy, Mexico, Spain and the UK. With our market leading brands and solutions we are well placed to take advantage of profitable growth opportunities also in the second half of the year.
"We are anticipating the third quarter of 2015 diluted earnings per share to be in the range of $1.50 to $1.58, which includes an estimated unfavorable currency impact of 24 cents," Prising stated.
"Net earnings per diluted share for the six months ended June 30, 2015 were $2.16 compared to $2.21 in 2014. Net earnings for the period were $171.4 million compared to $179.9 million in the prior year.
"Revenues for the six-month period were $9.4 billion, a decrease of 8 percent from the prior year or an increase of 7 percent in constant currency. Foreign currency exchange rates had an unfavorable impact of 39 cents for the six-month period."
In a conference call following the results Prising stated, "Our performance continued strong in the second quarter, with good financial and operational performance, slightly exceeding our expectations. As expected, a strong U.S. dollar compared to other currencies had a significant negative impact on our reported results, as the dollar was much stronger compared to a year ago, although not as strong as we had anticipated coming into the quarter.
"This headwind in our reported results in U.S. dollars will likely be something we'll see also going forward during 2015, but, as we've talked about in previous earnings calls, this headwind is a currency translation that does not reflect our operating performance in the different countries, nor does it impact our global operating margin in a significant way.
"Earnings per share exceeded expectations, coming in at $1.33 per diluted share. This was up 16% from the prior year in constant currency, but was down 1% on a U.S. dollar reported basis. This strong earnings growth was driven by better than expected constant currency revenue growth of 6.6%, which was slightly above our guidance range.
"We were pleased to see that growth was somewhat stronger than we had expected in a number of regions, although Europe is still somewhat mixed picture, with some markets performing very well, and others struggling to make headway. On the whole, Europe is continuing on its path of slow and patchy progress, not unlike the recovery we saw in the U.S. following the Great Recession."