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ManpowerGroup Q2 profit drops 44%, revenues shed

Published: 18:31 20 Jul 2012 BST

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Workforce solutions and services provider ManpowerGroup (NYSE:MAN) Friday said its second quarter profit declined 44 per cent as revenues fell in all regions.

ManpowerGroup provides temporary workers around the world and helps companies recruit permanent employees.

For the three months that ended June 30, the company posted net income of $41 million, or 51 cents per diluted share, compared to $72.7 million, or 87 cents per diluted share in the second quarter of 2011.

ManpowerGroup said second quarter earnings, excluding reorganization and legal charges, were 76 cents per diluted share. Net earnings were also negatively impacted by foreign currencies.

Revenues totalled $5.21 billion, compared to $5.67 billion in the year-earlier period.

Analysts polled by Thomson Reuters anticipated second quarter earnings of 72 cents per share on revenues of $5.21 billion.

"The second quarter underscored our ability to execute well in a difficult environment, said chairman and CEO Jeffrey A. Joerres.
 
“It was a quarter in which we experienced mild but steady declines in revenue throughout the quarter. Europe, which comprises 65 per cent of our business, not surprisingly experienced the most declines in the quarter.

“Our investments and execution in our Solutions business continued to generate strong revenue and earnings as well as contribute to our goal of gross margin expansion.”

ManpowerGroup said it expects earnings in the third quarter to be in the range of 64 to 72 cents, including an estimated unfavourable currency impact of eight cents.

Analysts are forecasting third quarter earnings of 79 cents, on revenues of $5.31 billion.

Revenues from services in the company’s Americas segment fell to $1.15 billion from $1.17 billion a year earlier.

In southern Europe, revenues fell to $1.8 billion from $2.18 billion a year earlier, and in Northern Europe, revenue fell to $1.41 billion, from $1.56 in the year-ago quarter.

ManpowerGroup’s services range from recruitment and assessment, training and development, career management to outsourcing and workforce consulting.

The $22 billion company has a network of 3,600 offices located in 80 countries and territories across the globe, with 400,000 clients per year across all industry sectors.

Shares fell over six per cent to $33.28 Friday afternoon.

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