February 1, 2017 – ManpowerGroup / (NYSE:MAN) posted full year revenues of $19.7 billion, an increase of two percent from the prior year and an increase of four percent in constant currency. The company posted fourth quarter revenues of $5.0 billion, which was equal to the year earlier period. Financial results in the quarter were significantly impacted by the stronger U.S. dollar relative to several foreign currencies compared to the prior year period.
The Milwaukee-based company recorded net earnings of $443.7 million for the year, or $6.27 per diluted share, compared to earnings of $419.2 million, or $5.40 per diluted share in 2015. For the quarter, earnings totaled $127.4 million, or $1.87 per diluted share, this compared to $123.9 million, or $1.66 per diluted share, a year earlier.
“We are very pleased with our strong performance in the fourth quarter, with improving top line growth and strong bottom line performance, capping off a solid year, despite the uneven and slow growth environment in 2016,” said Jonas Prising, chairman and chief executive officer. “Our clients appreciate the breadth, global scale and innovation of our services and solutions, helping them reach their business objectives in an uncertain environment.”
“The workforce solutions we provide to our clients also help millions of individuals enhance their employability and skills,” Mr. Prising continued. “Those are the fundamental drivers of our confidence in our continued business progress and our passion for sustainable and meaningful employment wherever we are in the world. We look forward to building on our progress in 2017, helping our clients and candidates win in the changing world of work.”
He said the company is anticipating diluted earnings per share in the first quarter 2017 to be in the range of $1.06 to $1.14 which includes an estimated unfavorable currency impact of five cents. Manpower shares have climbed 6.5 percent since the beginning of the year. The stock has risen 30 percent in the last 12 months.
In December, ManpowerGroup named Michael Stull as senior vice president for Manpower North America. He now leads the Manpower brand within the company’s North America operation. Kip Wright, former SVP Manpower North America, left ManpowerGroup at the end of December. Mr. Stull has led global marketing across 80 countries and all brands for the last five years.
ManpowerGroup recently 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.
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“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.”
In addition, ManpowerGroup Solutions, part of ManpowerGroup, recently formed a new partnership with PeopleTicker, a provider of real-time labor market rate data and analytics. Through this partnership, ManpowerGroup Solutions will leverage PeopleTicker’s ability to analyze and compare salary information with bill and pay rate data to provide market intelligence that improves benchmarking, enabling clients to achieve accelerated cost optimization across their entire workforce.
“We are continuously innovating and looking for new ways to leverage HR analytics to provide local market expertise on a global scale,” said Jamiel Saliba, vice president and general manager of TAPFIN Global, a ManpowerGroup Solutions’ Managed Service Provider. “PeopleTicker’s global data integrates seamlessly with our industry-leading market intelligence to not only accelerate cost savings but ensure our clients have access to the information they need to make better and more competitive decisions when pricing talent.”
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media