February 5, 2018 – ManpowerGroup / (NYSE:MAN) posted full-year revenues of $21 billion, an increase of seven percent from $19.7 billion the prior year and an increase of six percent in constant currency. The company posted ffourth-quarterrevenues of $5.6 billion, an increase of 14 percent from the year earlier period. The results surpassed Wall Street expectations. Five analysts surveyed by Zacks expected $5.55 billion.
Financial results in the quarter were significantly impacted by stronger foreign currencies relative to the U.S. dollar compared to the prior year period.
The Milwaukee, WI-based company recorded net earnings of $545.4 million for the year, or $8.04 per diluted share, compared to earnings of $443.7 million, or $6.27 per diluted share in 2016. For the quarter, earnings totaled $216.3 million, or $1.87 per diluted share, this compared to $127.4 million, or $3.22 per diluted share, a year earlier.
“We are very pleased with our strong performance in the fourth quarter, with improved revenue growth and good profitability,” said Jonas Prising, chairman and chief executive officer. “These strong quarterly results capped off the full year 2017 where we delivered strong top line growth and profit performance.”
Anticipating New War for Talent Trends
The war for talent is intensifying globally, said Mr. Prising. On one hand, ManpowerGroup’s clients are focused on finding the best talent and building their organizational agility. Individuals, meanwhile, are interested in opportunities that build their skills and advance their careers. “We have anticipated these market trends,” he said, “and as we start 2018, we are confident that our superior global footprint, our extensive portfolio of workforce solutions and our great people put us in a formidable position to continue to create value for our clients and candidates.”
ManpowerGroup forecast first quarter revenue to rise four to five percent in constant currency. “We are anticipating diluted earnings per share in the first quarter of 2018 to be in the range of $1.60 to $1.68, which includes a positive impact of tax reform of 20 cents and a positive impact from foreign currency of 15 cents,” said Mr. Prising.
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 comes to the firm 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.”
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This announcement coincides with ManpowerGroup naming Stefano Scabbio as president of Northern Europe, Mediterranean & 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.”
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 12 months.
Manpower shares have climbed roughly five percent since the beginning of the year. The stock has risen 36 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