ManpowerGroup has released its results for the first quarter of 2019.
The company reported net earnings of $0.88 per diluted share for the three months ended 31st March 2019 compared to $1.45 per diluted share in the prior year period. Net earnings in the quarter were $53.5m compared to $97.0m a year earlier. Revenues for the first quarter were $5.0 billion, a 9% decline from the prior year period. The current year quarter included restructuring costs which reduced earnings per share by 51 cents.
Financial results in the quarter were also impacted by the stronger US dollar relative to foreign currencies compared to the prior year period. On a constant currency basis, revenues decreased 2% and net earnings per diluted share decreased 34%, or 12% excluding the impact of restructuring costs. Earnings per share in the quarter were negatively impacted 7 cents by changes in foreign currencies compared to the prior year, or 12 cents excluding the restructuring costs.
Jonas Prising, ManpowerGroup chairman & CEO, said, "Our global team executed well and delivered solid first quarter results against the backdrop of a slow global growth environment. Demand for our extensive portfolio of workforce solutions and services across our global footprint provides us with good opportunities for profitable growth going forward.
"We anticipate diluted earnings per share in the second quarter will be between $1.96 and $2.04, which includes an estimated unfavorable currency impact of 10 cents."
ManpowerGroup purchased the remaining interest in the Switzerland Manpower business with annual revenues of approximately $500m during April 2019. During the first quarter, ManpowerGroup repurchased 1.2 million shares of common stock for $101 million. The effective tax rate for the first quarter equaled 42.8%, or 36.4% excluding the impact of restructuring costs. The effective tax rate increased in 2019 following the termination of the French tax exempt CICE subsidy in 2018.
Photo courtesy of Shutterstock.com