ManpowerGroup Revenue Down 30 Percent as COVID-19 Impacts Results

July 23, 2020 – ManpowerGroup / (NYSE:MAN) posted third quarter revenues of $3.7 billion, a decrease of 30 percent from the same period a year ago. The hardest hit region in its portfolio was France, where revenue fell 47.5 percent in constant currency.

The Milwaukee-based recruiting company recorded net earnings of $64.4 million, or $1.10 per diluted share, compared to earnings of $127.3 million, or $2.11 per diluted share, during the same period last year.

“The world continues to be impacted by COVID-19 which started as a health crisis and evolved to become a global economic and social crisis,” said Jonas Prising, chairman and CEO of ManpowerGroup. “While certain regions continue to deal with the pandemic at elevated levels, elsewhere lockdowns are easing, economies are slowly re-opening and people are returning to work. I am thankful and proud of our talented colleagues for providing the highest levels of support to our clients and candidates during this extremely challenging period.”

In this environment, he added, “we will continue to focus on operational excellence, including managing costs prudently to offset gross profit declines while continuing to invest in our transformation. This is how we will continue to progress our key strategic initiatives and position us for further success when we emerge from these crises.”

New Launch

ManpowerGroup recently 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.

Korn Ferry Posts Flat Year-End Revenues; Q4 Down 10.2 Percent 
Korn Ferry (NYSE:KFY) has posted 2020 fiscal year-end revenues of $1.92 billion, flat from a year ago. The Los Angeles-headquartered executive recruiter and leadership consultant – the largest globally and in the Americas as ranked by Hunt Scanlon Media – also reported fourth quarter revenue of $490.8 million, a decline of 10.2 percent. The firm reported restricting charges of $40.5 million in its fourth quarter. Net income attributable to Korn Ferry was $104.9 million in the 2020 fiscal year, while the firm reported a net loss on $0.8 million in Q4.

Talent Solutions will provide 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.

Looking Ahead

“We are resuming guidance as the major uncertainty associated with the government lockdowns has largely been lifted,” said Jack McGinnis, EVP and CFO of ManpowerGroup. “However, our guidance assumes no major rollbacks of reopening activities in any of our largest markets. On that basis, we are forecasting earnings per share for the third quarter to be in the range of 59 cents to 67 cents, which includes a negative impact from foreign currency of one cent per share.”

Mr. Prising said: “Our third quarter guidance reflects our assumptions as of today and does not anticipate any major rollbacks of economic reopening activities in any of our largest markets.”

“We are committed to delivering on our values, to making workplaces more equitable and more inclusive, and to ensuring organizations, individuals and communities can emerge from this crisis stronger, more skilled, more competitive and more successful than ever before,” said Mr. Prising.

Shares in ManpowerGroup were down 4.75 percent to $69.45 upon release of its numbers. The company has a market cap of $4.23 billion. Manpower shares have lost about 25 percent since the beginning of the year versus the S&P 500’s decline of -0.2 percent.

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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