ManpowerGroup Revenue Declines Eight Percent Citing COVID-19 Impact

The speed and magnitude of change in market conditions has been unlike anything Manpower has seen in its 70 year history, said chairman and CEO Jonas Prising. The organization has moved swiftly to execute business continuity plans.  

April 23, 2020 – ManpowerGroup / (NYSE:MAN) posted first quarter revenues of $4.6 billion, a decrease of eight percent from the same period a year ago. The company said it is focused on managing costs and is withholding guidance given the uncertainty when governments will ease stay-at-home restrictions.

The Milwaukee-based recruiting company recorded net earnings of $1.7 million for the quarter, or $0.3 per diluted share, compared to earnings of $53.5 million, or $0.88 per diluted share, during the same period last year.

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“The COVID-19 crisis has significantly disrupted the global economy, our clients and the demand for our services,” said Jonas Prising, chairman and CEO of ManpowerGroup. “The speed and magnitude of change in market conditions in the last few weeks of March was unlike anything we have seen in our over 70 year history. Our organization moved swiftly to execute our business continuity plans and to provide necessary support to our people, our clients and our communities. I want to thank our more than 28,000 employees for remaining steadfast in supporting our clients and associates through a very challenging environment.”

“We have a very experienced global management team that has gone through a number of recessions and we come into this crisis with clear strategic priorities and a strong balance sheet,” Mr. Prising said. “I am very confident we will manage through this difficult period while continuing to advance key strategic initiatives. I believe this will allow us to emerge from this crisis better positioned to capture growth and market share,” he said. “As we cannot forecast when governments in certain major markets will be lifting current work restrictions, we will not be providing guidance for our second quarter earnings.”

During the quarter, ManpowerGroup repurchased 871,000 shares of common stock for $64 million during the quarter. Shares in ManpowerGroup were up 4.2 percent to $64.52 upon the release of its first quarter numbers. The company had a market cap of $3.63 billion.

New Launch

ManpowerGroup also announced the launch of Talent Solutions, combining three of its current global offerings – RPO (Recruitment Process Outsourcing), TAPFIN MSP (Managed Service Provider) and Right Management – to provide innovative solutions and end-to-end, data-driven capabilities across the talent lifecycle.

Talent Solutions will focus on providing seamless delivery, best-in-breed technology and extensive workforce insights across multiple countries at scale, from talent attraction and acquisition to upskilling, development and retention.  This new combination of offerings will leverage industry expertise and an understanding of what talent wants to deliver new solutions that address organizations’ complex global workforce needs, said ManpowerGroup.

“Companies globally are reporting the highest talent shortages in a decade and now more than ever they need innovative, scalable solutions to find and develop the best talent to succeed,” said Mr. Prising. “That’s why we are pleased to be launching Talent Solutions today. This combination of global offerings – RPO, TAPFIN MSP and Right Management – means we will be even better positioned to deliver new solutions and create added value to serve our clients’ increasingly complex global workforce needs.”

Stefano Scabbio, regional president Southern Europe and brand leader for Talent Solutions, said: “I’m excited about the evolution of our brand with the launch of Talent Solutions to better meet the unique needs of our clients. By leveraging ManpowerGroup’s consulting and analytics capabilities, we can provide clients with precisely what they want — expert offerings, integrated and data-driven workforce solutions, and seamless implementation across multiple countries.”

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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