July 22, 2016 – ManpowerGroup / (NYSE:MAN) posted second quarter revenues of $5 billion, a three percent increase from revenues of $4.9 billion a year ago. The company’s performance missed Wall Street forecasts which had expected $5.06 billion. Financial results in the quarter were impacted by the stronger U.S. dollar relative to several foreign currencies compared to the prior year period.
Net earnings for the quarter were $115.4 million, or $1.60 per diluted share compared to earnings of $105.7 million, or $1.33 per diluted share, in the prior year period.
“We are pleased with our second quarter results, contributing to a good first half of 2016,” said Jonas Prising, chairman and chief executive officer. “We were able to deliver solid results despite a softening and more uncertain global economic growth environment.” He said Manpower is anticipating third quarter 2016 diluted earnings per share to be in the range of $1.66 to $1.74, which includes an estimated unfavorable currency impact of three cents.
During the quarter, ManpowerGroup Solutions formed a partnership with Professional Diversity Network, Inc., a developer and operator of online networks that provide access to employment opportunities for diverse professionals in the U.S. The partnership will provide ManpowerGroup Solutions with unparalleled access to more than 12 million candidates who self-identify as diverse.
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The company also declared a semi-annual dividend of 86 cents per share, an eight percent increase from the most recent dividend of 80 cents per share.
Just last month, ManpowerGroup signed a purchase agreement with Ciber, Inc., a global information technology consulting, services and outsourcing company, to acquire its Dutch business. Transaction terms include a $25 million cash purchase price. The transaction strengthens ManpowerGroup’s IT recruiting capabilities in the Netherlands, complementing the organic growth of its Experis brand.
“This acquisition will further accelerate our strategy of shifting our business mix towards higher value professional services in the Netherlands,” said Jilko Andringa, ManpowerGroup Northern Europe president. He said that rapid technological advances mean that IT professionals are more in-demand than ever. “This move allows us to broaden our offerings and bring even more IT talent to our clients so they can achieve their business objectives in this rapidly changing competitive environment.”
The company recently announced that Jeffrey A. Joerres has retired as executive chairman. He joined ManpowerGroup in 1993 and served as chairman of the board since 2001. He served as CEO from 1999 until 2014.
Manpower shares have fallen 18 percent since the beginning of the year. The stock has declined 27 percent in the last 12 months.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media