ManpowerGroup Reports Revenue Loss, Turns to China for Growth

October 22, 2015 – ManpowerGroup / (NYSE:MAN) posted revenues of $5 billion for the third quarter ended September 30, 2015, a decrease of eight percent from revenues of $5.4 billion during the same time a year ago. Numbers fell short of Wall Street’s forecasts which expected $5.04 billion in revenues during the quarter.

Financial results were significantly 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 net earnings per diluted share increased 16 percent. On a per-share basis, the Milwaukee-based company said it had profit of $1.61. Earnings, adjusted for non-recurring costs, were $1.86 per share. These results topped Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.55 per share.

“Our team executed well in the third quarter, delivering good results despite an increasingly uneven global growth scenario,” said Jonas Prising, ManpowerGroup CEO. “In this environment of volatile economic growth our clients are seeking to build more agile, flexible organizations to better adapt to any market changes affecting demand for their products and services, and this is where our global workforce solutions can play an important role.”

Mr. Prising said that Manpower is anticipating fourth quarter diluted net earnings per share to be in the range of $1.47 to $1.55, which includes an estimated unfavorable currency impact of 15 cents.

ManpowerGroup shares have risen 29 percent since the beginning of the year. The stock has climbed 42 percent in the last 12 months.

Last week, ManpowerGroup named former American Express HR executive Jo Pursaill as its director of talent. With over 15 years’ experience, Ms. Pursaill is a proven leader in global talent development. She has an exceptional track record of developing and delivering global learning strategies within a large, complex matrix environment. Her areas of expertise include learning and development, leadership, coaching, performance management, diversity, talent and career development.

Based in ManpowerGroup’s London offices, Ms. Pursaill joins the company from American Express, where she was director of global talent development for the past 18 months. There, she developed global career and development strategies to enable a 70,000 employee base to own and drive meaningful careers, enabling greater utilization of talent, stronger engagement and performance.

In Europe, ManpowerGroup said that Hans Leentjes, president of ManpowerGroup Northern Europe, will step down from his role effective December 31. He will be succeeded by Jilko Andringa, currently European regional managing director. Mr. Leentjes has served over 10 years at ManpowerGroup in several leadership roles and will continue to represent ManpowerGroup as vice president of CIETT, in his capacity as VP of external affairs.

In China, the recruiting company formed a strategic partnership with CITICPE, one of the largest investment firms in China. The joint venture was created to expand ManpowerGroup’s business in the Greater China region (mainland China, Hong Kong, Macau and Taiwan). ManpowerGroup will consolidate its existing operations in Greater China and partner with CITICPE to combine both organizations’ specialist knowledge and expertise in these markets. The joint venture will operate under the ManpowerGroup management and brand and will be a strategic part of the ManpowerGroup global network.

“China’s economy has entered a crucial stage of transformation and upgrade,” said Zhang Yinghao, managing director for CITICPE. “The HR services industry in the Greater China region is expected to grow significantly, driven by the local market. We see immense opportunities for the partnership to contribute to this growth through ManpowerGroup’s global experience, network and innovative workforce solutions suitable for this region, as well as their strong presence and entrepreneurial talent in the local market.”

Last month Manpower released its ‘Employment Outlook Survey’ and found that U.S. employers are predicting the strongest fourth quarter hiring blitz since the final quarter of 2007. In this survey, more than 11,000 U.S. employers were surveyed, which included a large and inclusive group of business executives. According to the report, one fifth, or 21 percent, of respondents anticipate increasing staff levels in the fourth quarter, good news for Manpower as it wraps up the year.

Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media

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