ManpowerGroup Q2 revenue rises 4.5% in constant currency, US revenue slips


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ManpowerGroup (NYSE: MAN) revenue rose 4.5% in constant currency in the second quarter. However, US revenue fell 4.6% and revenue at Right Management, which provides outplacement, was down 10.5% in constant currency. In addition, second-quarter gross margin for the company narrowed to 16.3% with temporary staffing, Right Management and currency weighing on it.

(US$ millions)
Q2 2018
Q2 2017
% change
% constant currency
Revenue
$5,656.9
$5,174.8
9.3%
4.5%
Gross profit
$922.7
$861.7
7.1%
2.8%
Gross margin
16.3%
16.7%
 
 
Net earnings
$143.4
$117.0
22.6%
17.4%

Revenue growth was boosted by ManpowerGroup’s foreign operations, including in Italy where revenue rose 11.8% in constant currency and “other Americas,” where revenue rose 13.1% in constant currency. Among its other Americas operations are Mexico, where revenue rose 9% in constant currency, and Argentina, where revenue rose 19% in constant currency despite falling 19% on a reported basis.

In France, the company’s largest geography, revenue rose 3.1% in constant currency.


Revenue by geography (US$ millions)
Q2 2018
Q2 2017
% change
% constant currency
Americas
 
 
 
 
United States
$640.5
$671.3
-4.6%
-4.6%
Other Americas
$412.0
$385.6
6.9%
13.1%
Total Americas
$1,052.5
$1,056.9
-0.4%
1.9%
 
 
 
 
 
Southern Europe
 
 
 
 
France
$1,512.5
$1,356.3
11.5%
3.1%
Italy
$443.0
$366.5
20.9%
11.8%
Other Southern Europe
$478.5
$412.9
15.9%
9.3%
Total Southern Europe
$2,434.0
$2,135.7
14.0%
5.8%
 
 
 
 
 
Northern Europe
$1,393.2
$1,281.7
8.7%
2.2%
 
 
 
 
 
Asia Pacific Middle East
$724.8
$643.4
12.6%
10.4%
 
 
 
 
 
Right Management
$52.4
$57.1
-8.3%
-10.5%

In Northern Europe, ManpowerGroup noted UK revenue rose 3% in constant currency, but Dutch revenue fell 1% in constant currency. Revenue was also flat in Germany on a constant currency basis.

By business line, the company reported second-quarter gross profit at its ManpowerGroup Solutions business was up 9% in constant currency. This business includes RPO and MSP operations.


Gross profit growth (constant currency)

ManpowerGroup Q2 gross  profit growth

ManpowerGroup also reported restructuring costs of $15.3 million in the second quarter, compared with $10.5 million in the second quarter of last year. In this year’s quarter, restructuring costs were concentrated in Northern Europe where the company reported $13.2 million in such costs, according to a filing with US Securities and Exchange Commission. It also reported $2.3 million in restructuring costs in Southern Europe.


Guidance

ManpowerGroup expects third-quarter revenue to rise 4% to 6% in constant currency. Guidance by geography (in constant currency):

Americas: up 4% to 6%

Southern Europe: up 3% to 5%

Northern Europe: up 2% to 4%

Asia Pacific Middle East: up 10% to 12%

Right Management: down 4% to 6%


Share price and market cap

Shares in ManpowerGroup were up 0.046% at 12:06 p.m. Eastern time to $86.14. The company had a market cap of $5.70 billion.

Original Article : HERE ; This post was curated & posted using : RealSpecific


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