Revenues of $4.8 billion (-11% as reported, -1% constant currency (CC))
Gross profit margin of 18.2%, up 100 basis points year over year reflecting business mix progress and solid permanent recruitment trends
Talent Solutions experienced good revenue growth driven by RPO and Right Management
Experis and Manpower revenue trends impacted by softening environment in Europe and North America
Non-cash goodwill impairment charge of $50 million in the fourth quarter
Repurchased $25 million of common stock
MILWAUKEE, Jan. 31, 2023 -- ManpowerGroup today reported net earnings of $0.95 per diluted share for the three months ended December 31, 2022 compared to $2.02 per diluted share in the prior year period. Net earnings in the quarter were $48.7 million compared to $111.1 million a year earlier. Revenues for the fourth quarter were $4.8 billion, an 11% decrease from the prior year period.
The current year quarter included restructuring costs, final integration costs from the U.S. Experis acquisition, and other special items consisting of a loss on sale of our Hungary business and non-cash goodwill impairment and pension settlement charges. These costs reduced earnings per share by $1.13 in the fourth quarter. Excluding these costs, earnings per share was $2.08 per diluted share in the quarter representing an increase of 8% in constant currency.
Financial results in the quarter were also impacted by the stronger U.S. dollar relative to foreign currencies compared to the prior year period, resulting in a 30 cent negative impact to earnings per share in the quarter compared to the prior year. On a constant currency basis, revenues decreased 1% compared to the prior year period.
Jonas Prising, ManpowerGroup Chairman & CEO, said, "Our fourth quarter results reflect a softening demand environment, particularly in Europe and North America. We continue to invest resources into markets and brands where demand is strong and are exercising financial discipline where demand is slower.
We remain focused on continuing to accelerate our strategic priorities and advancing our Diversification, Digitization and Innovation initiatives across our organization throughout 2023. I want to thank all of our talented teams for their continued energy, passion and resilience – helping our clients achieve their business outcomes while finding meaningful and fulfilling work for millions of people.
We anticipate diluted earnings per share in the first quarter will be between $1.61 and $1.71, which includes an estimated unfavorable currency impact of 15 cents."
Net earnings for the year ended December 31, 2022 were $373.8 million, or net earnings of $7.08 per diluted share compared to net earnings of $382.4 million, or net earnings of $6.91 per diluted share in the prior year. Earnings per share for the year were negatively impacted by 88 cents due to changes in foreign currencies compared to the prior year. The full year period included integration costs from the U.S. Experis acquisition, restructuring costs, and special items related to losses on business exits and non-cash goodwill impairment and pension settlement charges, which reduced earnings per share by $1.44. Excluding these costs, earnings per share for the year was $8.52 per diluted share representing an increase of 31% in constant currency. Revenues for the year were $19.8 billion, a decrease of 4% compared to the prior year or an increase of 5% in constant currency.
In conjunction with its fourth quarter earnings release, ManpowerGroup will host a conference call live online on January 31, 2023 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.
Forward-Looking Statements This press release contains statements, including statements regarding economic uncertainty, financial outlook, labor demand, supply-chain disruptions brought on by the Russia/Ukraine war and other geopolitical uncertainty, the Company's strategic initiatives and technology investments, the positioning for future growth of our brands and the Company's efforts to deliver on its ESG strategy, 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, 2021, as well as the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, 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.
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