April 19, 2019 – ManpowerGroup / (NYSE:MAN) posted third quarter revenues of $5 billion, a decrease of nine percent from the same period a year ago. The results beat Wall Street expectations. Four analysts surveyed by Zacks Investment Research expected $4.92 billion in revenues.
Financial results in the quarter were also impacted by the stronger U.S. dollar relative to foreign currencies compared to the prior year period.
U.S. revenue fell 2.1 percent in the first quarter. Revenue also decreased 9.1 percent in Southern Europe, 16.1 percent in Northern Europe and 2.8 percent in Asia Pacific Middle East.
The Milwaukee-based company posted earnings of $53.5 million, or $1.39 per diluted share, compared to $97 million, or $1.45 per diluted share, last year. The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.35 per share.
“Our global team executed well and delivered solid first quarter results against the backdrop of a slow global growth environment,” said Jonas Prising, chairman and CEO. “Demand for our extensive portfolio of workforce solutions and services across our global footprint provides us with good opportunities for profitable growth going forward.”
ManpowerGroup recently purchased the remaining interest in the Switzerland Manpower business with annual revenues of about $500 million during April. During the first quarter, ManpowerGroup also repurchased 1.2 million shares of common stock for $101 million. The effective tax rate for the first quarter equaled 42.8 percent, or 36.4 percent 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.
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.”
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Right Management also announced it will significantly increase its presence in the U.S. and Canada this year 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.
“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,” said Mr. Prising.
Manpower shares have climbed 34 percent since the beginning of the year. The stock has fallen 25 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