ManpowerGroup Records Seven Percent Q3 Revenue Gain; U.S. Down 8.8 Percent
October 23, 2017 – ManpowerGroup / (NYSE:MAN) posted revenues of $5.5 billion, an increase of seven percent, compared to revenues of $5.1 billion a year ago.
Five analysts surveyed by Zacks Investment Research expected $5.39 billion.
Within the U.S., however, third quarter revenue fell 8.8 percent. That follows a year-over-year decline of 7.4 percent in the second quarter. The largest revenue gains were in Italy and France, where revenue increased by 22.7 percent and 10.2 percent, respectively.
ManpowerGroup also reported third quarter revenue gain of 1.5 percent in its Northern Europe segment while German revenue rose nine percent. Revenues in the Nordics rose seven percent and U.K. revenue fell eight percent during the quarter.
The Milwaukee-based recruiting company recorded net earnings of $137.7 million, or $2.04 per diluted share, compared to $129.2 million, or $1.87 per diluted share, a year earlier. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks was for earnings of $1.96 per share.
“We made good progress with solid results in the third quarter and we are well positioned to finish 2017 with strong performance,” said Jonas Prising, chairman and CEO. “Our market-leading global footprint and extensive portfolio of workforce solutions continue to resonate well with our clients and candidates. We expect the broad-based global improvement in both employer hiring intentions and economic growth to provide us with good opportunities for continued profitable growth.”
“We are anticipating the fourth quarter of 2017 diluted net earnings per share to be in the range of $2.01 to $2.09, which includes an estimated favorable currency impact of 12 cents,” he said.
Recent Activity
Just 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.
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“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.”
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.
Shares in Manpower rose nine percent to $122.80 upon the release its earnings. The company had a market cap of $8.17 billion, according to Yahoo. Manpower shares have climbed 38 percent since the beginning of the year. The stock has risen 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
