ManpowerGroup Posts Q3 Revenue Decline of 13 Percent

October 21, 2020 – ManpowerGroup / (NYSE:MAN) posted third quarter revenues of $4.6 billion, a decrease of 13 percent from the same period a year ago. The company’s U.S. revenue fell 13.1 percent during the quarter.

The Milwaukee-based recruiting company recorded net earnings of $10.3 million, or $1.20 per diluted share, compared to earnings of $146.1 million, or $1.92 per diluted share, during the same period last year.

“As the global recovery took hold in the third quarter we experienced strengthening demand for our services reflecting the diversity of our offerings and strength of our digital capabilities,” said Jonas Prising, chairman and CEO of ManpowerGroup. “We also continued to advance strategic initiatives in the quarter including restructuring activities to improve efficiency, adjustments to our country portfolio to improve profitability, and ongoing execution of our digitization initiatives.”

“All of these actions are improving our business for further progress as we gradually recover from the current crisis,” he said. “I would like to thank our talented teams around the world for their contribution to these results, their unwavering support to clients and candidates as well as their commitment to creating a positive social impact.”

The current year quarter included restructuring costs and other special items consisting of a discrete tax item and a loss on dispositions. The restructuring costs and other special items reduced earnings per share by $1.02 in the current quarter.

New Launch

ManpowerGroup recently announced the launch of Talent Solutions, combining three of its current global offerings – RPO (Recruitment Process Outsourcing), TAPFIN MSP (Managed Service Provider) and Right Management – to provide innovative solutions and end-to-end, data-driven capabilities across the talent lifecycle.

Korn Ferry Posts Flat Year-End Revenues; Q4 Down 10.2 Percent 
Korn Ferry (NYSE:KFY) has posted 2020 fiscal year-end revenues of $1.92 billion, flat from a year ago. The Los Angeles-headquartered executive recruiter and leadership consultant – the largest globally and in the Americas as ranked by Hunt Scanlon Media – also reported fourth quarter revenue of $490.8 million, a decline of 10.2 percent. The firm reported restricting charges of $40.5 million in its fourth quarter. Net income attributable to Korn Ferry was $104.9 million in the 2020 fiscal year, while the firm reported a net loss on $0.8 million in Q4.

Talent Solutions will provide seamless delivery, best-in-breed technology and extensive workforce insights across multiple countries at scale, from talent attraction and acquisition to upskilling, development and retention.  This new combination of offerings will leverage industry expertise and an understanding of what talent wants to deliver new solutions that address organizations’ complex global workforce needs.

Looking Ahead

“Our guidance continues to assume no material lockdowns impacting economic activity in any of our largest markets,” said Jack McGinnis, EVP and CFO of ManpowerGroup. “On that basis, we are forecasting earnings per share for the fourth quarter to be in the range of $1.06 to $1.14, which includes a favorable impact from foreign currency of $0.03 per share. Our constant currency revenue guidance range is between a decline of 10 percent to a decline of 12 percent.”

“We are very well-positioned to leverage the lasting legacy of the pandemic, new work models with more flexible and remote work, more focus on health and well-being, greater use of technology and faster changing skill shifts, and the need for strategic and operational workforce transformation, at scale and speed,” said Mr. Prising. “We have remained steadfast in our purpose and committed to providing our clients, candidates and our communities around the world with skilled talent and meaningful employment, all with health and safety at the center.”

Shares in ManpowerGroup were down 3.44 percent to $69.75 upon the release its numbers, but they were still 40.72 percent above their 52-week low. The company had a market cap of $4.20 billion.

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

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