Manpower Posts Four Percent Revenue Increase

Billion dollar staffing company sees broad-based hiring improvements in Europe, setting stage for slow but sustained labor market recovery in the region.

April 21, 2017 – ManpowerGroup / (NYSE:MAN) posted revenues of $4.8 billion, an increase of four percent, compared to revenues of $4.5 billion a year ago. Five analysts surveyed by Zacks expected $4.69 billion.

The Milwaukee-based staffing company recorded net earnings of $74.4 million, or $1.09 per diluted share, compared to net earnings of $71.7 million, or 98 cents per diluted share, a year earlier. The results fell short of Wall Street expectations. The average estimate of eight analysts was for earnings of $1.11 per share.

“The strong first quarter results are very encouraging, and build on the progress we made last year,” said CEO Jonas Prising. “We are seeing further broad-based improvement in Europe, setting the stage for what we believe could be a slow but sustained labor market recovery in that region.” He said the company’s workforce services and solutions are resonating with clients and candidates, and that “gives us the confidence that we are on the right track and well placed to seize further opportunities during 2017.”

Acquisitions

In February, ManpowerGroup signed a purchase agreement with Ciber, Inc., a global information technology consulting, services and outsourcing company, to acquire its business in Spain. The deal builds on ManpowerGroup’s already established business in Spain. Since 1988, ManpowerGroup Spain has offered workforce solutions across its five brands — Manpower, Experis, ManpowerGroup Solutions, Futurskill and Right Management. It now has 120 locations in the country and more than 600 employees, offering a broad range of staffing, development and workforce management solutions. 

The acquisition follows ManpowerGroup’s recent purchase agreement with Ciber to acquire its Dutch business. Transaction terms of this deal included a $25 million cash purchase price and strengthened ManpowerGroup’s IT recruiting capabilities in the Netherlands, complementing the organic growth of its Experis brand.

Other Activity 

In March, José Brenninkmeijer was appointed managing director for ManpowerGroup Netherlands. She will lead all of ManpowerGroup’s brands – Manpower, Experis, ManpowerGroup Solutions and Right Management. Jilko Andringa, current managing director for the Netherlands and president of ManpowerGroup Northern Europe, will focus wholly on his regional role following the successful handover with Ms. Brenninkmeijer. She had been responsible for commercial and operations for ManpowerGroup in the Netherlands for the past 12 months. 

At the end of the year, ManpowerGroup named Michael Stull as senior vice president for Manpower North America. He now leads the Manpower brand within the company’s North America operation, effective immediately. He led global marketing across 80 countries and all brands for the last five years at Manpower and played a lead role in leveraging technology solutions and third party relationships on behalf of the company to enhance and modernize the experience it provided to candidates and clients.

In addition, ManpowerGroup Solutions, part of ManpowerGroup, recently formed a new partnership with PeopleTicker, a provider of real-time labor market rate data and analytics. Through this partnership, ManpowerGroup Solutions will leverage PeopleTicker’s ability to analyze and compare salary information with bill and pay rate data to provide market intelligence that improves benchmarking, enabling clients to achieve accelerated cost optimization across their entire workforce. 

Manpower shares have increased 16 percent since the beginning of the year. The stock has climbed 21 percent in the last 12 months.

Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media

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