ManpowerGroup Records Global Q2 Revenue Gain; U.S. Drops Seven Percent
July 27, 2017 – ManpowerGroup / (NYSE:MAN) posted revenues of $5.17 billion, an increase of three percent, compared to revenues of $5.1 billion a year ago. Five analysts surveyed by Zacks expected $5.03 billion.
French revenue rose 11 percent in constant currency. The country is ManpowerGroup’s largest single market. Meanwhile, Italian revenue increased 25.2 percent in constant currency, and Mexican revenue jumped 14 percent. Northern European revenue rose in constant currency, although U.K. revenue fell 10 percent. U.S. revenue fell seven percent during the quarter.
The Milwaukee-based staffing company recorded net earnings of $117.0 million, or $1.72 per diluted share, compared to net earnings of $115.4 million, or $1.60 per diluted share in the prior year period, last year. The results also exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.73 per share.
Impacting Results
Financial results in the quarter were impacted by the stronger U.S. dollar relative to several foreign currencies compared to the prior year period. On a constant currency basis, revenues increased six percent and earnings per share increased nine percent. Earnings per share in the quarter were negatively impacted three cents by changes in foreign currencies compared to the prior year, or four cents excluding the restructuring charges.
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“We are pleased with our strong second quarter results,” said Jonas Prising, CEO of ManpowerGroup. “The labor markets continue to improve in Europe and across the globe, which is a good foundation for continued profitable growth as we head into the second part of 2017. The improving market conditions were spread across the geographies where we operate, and revenue growth was strong in a number of our countries, with our teams in France, Italy, Mexico and Poland leading the way,” he said.
“We anticipate the third quarter diluted earnings per share to be in the range of $1.90 to $1.98, which includes an estimated favorable currency impact of two cents,” Mr. Prising said.
Recent Activity
In June, 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 risen 34 percent since the beginning of the year. The stock has increased 69 percent in the last 12 months.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Will Schatz, Managing Editor – Hunt Scanlon Media
