ManpowerGroup Posts 16 Percent Q1 Revenue Increase, But U.S. Business Falters

ManpowerGroup Posts 16 Percent Q1 Revenue Increase U.S. Business Falters

April 23, 2018 – ManpowerGroup / (NYSE:MAN) posted first quarter revenues of $5.5 billion, an increase of 16 percent from $4.8 billion the prior year. The results surpassed Wall Street expectations. Five analysts surveyed by Zacks expected $5.53 billion. Results were significantly impacted by stronger foreign currencies relative to the U.S. dollar compared to the prior year period.

The Milwaukee-based recruiting company also reported that U.S. revenue fell 6.8 percent during the quarter. The only other segment where revenue fell was the outplacement provider division Right Management, which recorded a 15.1 percent decline in revenue on a constant currency basis.

During the first quarter, ManpowerGroup recorded net earnings of $97 million for the year, or $1.45 per diluted share, compared to earnings of $74.4 million, or $1.09 per diluted share, during the same period a year ago.

“We are pleased with the solid start to the year, with strong revenue growth, improved productivity and increased earnings,” said Jonas Prising, chairman and chief executive officer. “We are seeing good broad-based demand globally for our services and workforce solutions. We are very well placed to seize future growth opportunities thanks to our industry leading global footprint and extensive portfolio of innovative workforce solutions.”

Executive Recruiters Report Solid Gains in Latest Rankings
The executive search industry’s leading 50 players in the Americas once again surpassed $3 billion in revenues last year, according to industry newsletter ESR, in a market report to be released later this month by Hunt Scanlon Media.

Recent Activity

Recently, Becky Frankiewicz joined ManpowerGroup as president of its North American operations. Reporting to chief operating officer Darryl Green, she oversees all of the company’s brands and offerings in the region, including Manpower, Experis, Right Management and ManpowerGroup Solutions. Ms. Frankiewicz joined the company from PepsiCo, where she led one of its largest subsidiaries, Quaker Foods North America, across all functions, sales and manufacturing.

“Becky has an impressive track record in innovation, transformation and delivering strategic, sustainable growth,” said Mr. Green. “I am pleased she will bring her strong leadership, passion and excellent P&L experience to further accelerate growth in our second largest market, and will lead our great North American team to drive even more value to the clients and individuals we serve.”

This announcement coincided with ManpowerGroup naming Stefano Scabbio as president of Northern Europe, Mediterranean and Eastern Europe. “Stefano has been instrumental in accelerating growth and driving next generation innovation across our European business,” said Mr. Green. “Under his leadership, Stefano is enhancing and modernizing the experience for our candidates and clients, with speed, in a rapidly evolving digital market.”

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José Brenninkmeijer was recently 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 handover with Ms. Brenninkmeijer. She had been responsible for commercial and operations for ManpowerGroup in the Netherlands for the past year.

Looking Ahead

For the current quarter ending in July, “we anticipate second quarter earnings per share will be between $2.33 and $2.41, which includes an estimated favorable currency impact of 18 cents and excludes restructuring costs,” said Mr. Prising.

Manpower shares have dropped roughly six percent since the beginning of the year. The stock has increased 17 percent in the last 12 months. The company has a market cap of $6.91 billion.

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media

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