ManpowerGroup reported Q3 2024 revenues of $4.5 billion, down 3% year-over-year (-2% in constant currency), reflecting challenges in North America and Europe but strong demand in Latin America and Asia-Pacific. Net earnings per diluted share were $0.47, impacted by restructuring costs and a discrete tax item, with adjusted earnings per share at $1.29. Staffing margins remained solid, while SG&A reductions aligned with market conditions. Key developments included launching Manpower branches in select Walmart locations and selling the South Korea business to operate as a franchise. The company repurchased $29 million in common stock. Forecasted Q4 earnings are expected between $0.98 and $1.08 per share.

• Revenues of $4.5 billion (-3% as reported, -2% constant currency)


• Continuation of challenging environment in North America and Europe during the quarter, good demand in Latin America and Asia-Pacific region


• Gross profit margin of 17.3%.  Staffing margins remained solid; permanent recruitment levels stable


• SG&A reductions reflect adjustments to market conditions during the quarter (-5% both as reported and constant currency as adjusted¹)


• U.S. business launched innovative Manpower branch offices inside select Walmart locations during the quarter


• Reached agreement to sell our South Korea business, which will operate as a Manpower Franchise in the future


• $29 million of common stock repurchased during the quarter

MILWAUKEE, Oct. 17, 2024 -- ManpowerGroup (NYSE: MAN) today reported net earnings of $0.47 per diluted share for the three months ended September 30, 2024 compared to net earnings of $0.60 per diluted share in the prior year period.  Net earnings in the quarter were $22.8 million compared to net earnings of $30.3 million a year earlier. Revenues for the third quarter were $4.5 billion, a 3% decrease from the prior year period.

The current year quarter included restructuring costs and a discrete tax item which reduced earnings per share by $0.82 in the third quarter. Excluding these charges, earnings per share was $1.29 per diluted share in the quarter representing a decrease of 8% in constant currency.²

Financial results in the quarter were also impacted by the U.S. dollar relative to foreign currencies compared to the prior year period.³ On a constant currency basis, revenues decreased 2% compared to the prior year period.

Jonas Prising, ManpowerGroup Chairman & CEO, said, "The operating environment has not changed significantly through the third quarter and employers in North America and Europe remain cautious.  Although demand levels have largely stabilized at lower levels in these markets, during the quarter we have taken additional cost actions based on the extended duration of the current operating environment. At the same time, our experienced management team continues to drive our key Diversification, Digitization and Innovation initiatives which are strengthening ManpowerGroup for the future.

We anticipate diluted earnings per share in the fourth quarter will be between $0.98 and $1.08, which includes an estimated unfavorable currency impact of 1 cent. Our guidance excludes any restructuring costs and any Argentina related impact of non-cash currency translation losses."

Net earnings for the nine months ended September 30, 2024 were $122.6 million, or net earnings of $2.53 per diluted share compared to net earnings of $173.3 million, or net earnings of $3.42 per diluted share in the prior year, respectively. The current year to date period included restructuring costs, run-off losses related to the Proservia Germany business, and Argentina hyperinflationary related non-cash currency translation losses which reduced earnings per share by $1.00. Excluding the net impact of these charges, earnings per share for the nine-month period was $3.53 per diluted share representing a decrease of 20% in constant currency.⁴ Revenues for the nine-month period were $13.5 billion, representing a decrease of 6% compared to the prior year or a decrease of 4% in constant currency. Earnings per share for the nine-month period were negatively impacted by 15 cents due to changes in foreign currencies compared to the prior year.

In conjunction with its third quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on October 17, 2024 at 7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the conference call, webcast details, presentation and recordings are included within the Investor Relations section of manpowergroup.com.

Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.

About ManpowerGroup 
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 70 countries and territories and has done so for 75 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability, and in 2024 ManpowerGroup was named one of the World's Most Ethical Companies for the 15^th time – all confirming our position as the brand of choice for in-demand talent. For more information, visit  www.manpowergroup.com.

Forward-Looking Statements
This press release contains statements, including statements regarding economic and geopolitical uncertainty, trends in labor demand and the future strengthening of such demand, financial outlook, the expected closing of the sale of the South Korea business and the Company's strategic initiatives and technology investments that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company's expected future results.  The Company's actual results may differ materially from those described or contemplated in the forward-looking statements due to numerous factors.  These factors include those found in the Company's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2023, which information is incorporated herein by reference.

The Company assumes no obligation to update or revise any forward-looking statements. We reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include a reconciliation of these measures, where appropriate, to GAAP on the Investor Relations section of our website at manpowergroup.com.

¹ Adjusted to exclude restructuring costs of $37.6 million in the third quarter of 2024 and $38.1 million in the third quarter of 2023.

² The prior year period included restructuring costs, a small loss from the sale of our Philippines business and Argentina related currency translation losses which reduced earnings per share by $0.78 which are also excluded when determining the year over year trend.

³ The third quarter earnings per share guidance estimated a negative 5 cents foreign currency impact and the actual impact was slightly better at negative 3 cents.

⁴ The prior year period included restructuring costs, a small loss from the sale of our Philippines business and Argentina related currency translation losses which reduced earnings per share by $1.16 which are also excluded when determining the year over year trend.

 

SOURCE ManpowerGroup