Revenues down 1% in Q3 2018 for ManpowerGroup
ManpowerGroup has reported that net earnings per diluted share for the three months ended 30th September 2018 were $2.43 compared to $2.04 in the prior year period. Net earnings in the quarter were $158.0m compared to $137.7m a year earlier. Revenues for the third quarter were $5.4 billion, a decrease of 1% from the year earlier period.
Financial results in the quarter were impacted by the stronger US dollar relative to foreign currencies compared to the prior year period. On a constant currency basis, revenues increased 1% and net earnings per diluted share increased 21%. Earnings per share in the quarter were negatively impacted 4 cents by changes in foreign currencies compared to the prior year.
Jonas Prising, ManpowerGroup chairman & CEO, said, "Our third quarter results reflect a more challenging economic environment than we had anticipated, in particular for some countries in Europe. While we are cautious on our outlook, we are confident in our ability to manage in a more uncertain environment. We believe our market leading global footprint and diversified business mix, enabled by technology, will continue to serve us well as access to human capital and workforce agility remains a strategic priority for employers globally.
"We are anticipating the fourth quarter of 2018 diluted net earnings per share to be in the range of $2.15 to $2.23, which includes an estimated unfavorable currency impact of 5 cents. This includes an estimated one-time negative impact of 27 cents related to reduced gross profit in France.”
Net earnings for the nine months ended 30th September 2018 were $398.4m, or $6.03 per diluted share compared to net earnings of $329.1m, or $4.84 per diluted share in the prior year. The year to date period included restructuring costs which reduced earnings per share by 45 cents. The prior year to date period included restructuring costs which reduced earnings per share by 41 cents and discrete income tax benefits which increased earnings per share by 19 cents. Revenues for the nine-month period were $16.6 billion, an increase of 8% from the prior year in reported US dollars or 4% in constant currency. Earnings per share for the nine-month period were positively impacted 19 cents by changes in foreign currencies compared to the prior year, or 23 cents excluding the restructuring costs.
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