ManpowerGroup Posts Five Percent Revenue Gain
February 4, 2019 – ManpowerGroup / (NYSE:MAN) posted full-year revenues of $22 billion, an increase of five percent from $21 billion a year ago. The company posted fourth-quarter revenues of $5.4 billion, a decrease of four percent from the year earlier period. The results fell short of Wall Street expectations. Six analysts surveyed by Zacks expected $5.54 billion.
U.S. revenue fell 5.1 percent in the fourth quarter. Revenue also fell 4.4 percent in Southern Europe and 10.3 percent in Northern Europe. The declines on a constant currency basis were 1.1 percent and 6.6 percent, respectively.
The Milwaukee-based company recorded net earnings of $556.7 million for the year, or $8.56 per diluted share, compared to earnings of $545.4 million, or $8.04 per diluted share in 2016. For the quarter, earnings totaled $158.3 million, or $2.44 per diluted share; this compared to $216.3 million, or $1.87 per diluted share, a year earlier.
“The fourth quarter results reflect a more challenging environment, particularly in Europe,” said Jonas Prising, chairman and CEO of ManpowerGroup. “Our performance demonstrates our capability to respond rapidly as market dynamics in some parts of the world change. We are confident in our ability to manage in a more uncertain environment and believe our market-leading global footprint and extensive portfolio of workforce solutions will continue to serve us well and provide us with opportunities for profitable growth.”
Recent Growth
Right Management, the global career and talent development expert within ManpowerGroup, recently launched a new executive transition offering in the U.S. The “E•Series Executive Transition Services” draws on the workforce and assessment expertise of ManpowerGroup and the leadership development of Right Management to bring comprehensive transition support to executives, the company said.
“Organizations in all industries are experiencing disruption from digital transformation to public policy changes and shifting demographics,” said Ian Symes, EVP of Right Management Europe & North America. “In times of change, leader turnover rises. Since 2017, we’ve seen close to a 10 percent increase in leaders moving on. In the digital age leaders need to lead differently to capture opportunity and stay relevant. Helping those whose skills no longer fit transition smoothly to new positions outside the organization is not only the right thing to do; it’s critical to mitigating risk and protecting your employer brand.”
Big Growth in Store as Executive Recruiters Adapt to Automated Technologies
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 intelligence briefing just released by Hunt Scanlon Media.
Right Management also announced it will significantly increase its presence in the U.S. and Canada in 2019 and invest in new digital tools. Right Management said it will increase the number of locations where it hosts clients and individuals, including flexible workspaces, offices and pop-up locations. It also intends to enhance its digital offerings to enable on-demand access to its talent management, career development and outplacement tools.
“We know individuals and clients want to meet us in locations and spaces that are most convenient to them,” said Mr. Symes. “With that in mind, we are changing the way we do business in the U.S. and Canada – investing in new high-tech workspaces and expanding our portfolio of digital tools with anywhere access. We know this model works – this is the latest phase in our global transformation, which begun three years ago.”
“With this approach, we can meet our clients and candidates wherever they want to be, showcase our industry-leading technology, and enable our consultants to deliver the expert coaching we know is valuable to employers and employees alike,” said Mr. Symes.
Outlook
“We are anticipating diluted earnings per share in the first quarter of 2019 to be in the range of $1.30 to $1.38, which includes an estimated unfavorable currency impact of 13 cents,” Mr. Prising said.
Manpower shares have risen 17 percent since the beginning of the year. The stock has fallen 42 percent in the last 12 months.
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
