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Manpower Reports 1st Quarter 2007 Results

MILWAUKEE, April 20, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Manpower Inc. (NYSE: MAN) today reported that net earnings from continuing operations for the three months ended March 31, 2007 more than doubled to $59.5 million, or 69 cents per diluted share, compared to $29.5 million, or 33 cents per diluted share, a year earlier. Revenues for the first quarter were $4.5 billion, an increase of 17 percent from the year earlier period.

(Logo: www.newscom.com/cgi-bin/prnh/20060221... )

Results for the first quarter were favorably impacted by 5 cents per diluted share as foreign currencies were relatively stronger compared to the first quarter of 2006. On a constant currency basis, revenues increased 10 percent over the prior year period. Included in prior year net earnings of 59 cents per diluted share is 26 cents per diluted share of earnings related to discontinued operations. Also included in prior year net earnings is a 16 cents per diluted share charge related to reorganization costs and a global cost reduction initiative.

Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, "The strength of our European geography combined with company-wide operational excellence resulted in a very strong first quarter for Manpower.

"The Manpower team is executing extremely well, our Other EMEA segment (Europe excluding France and Italy) increased profitability by 144 percent, while Manpower France, our single largest operation, increased profitability by 33 percent on a constant currency basis. The U.S. operation, expectedly, experienced softness in revenue, but realized an increase in profitability of 22 percent.

"Our ability to deliver such strong earnings, given the softness in the U.S. market, demonstrates the strength of our geographic and business mix as well as the underlying quality, talent and dedication of our people throughout the world.

"Given the current trends, we anticipate our second quarter diluted earnings per share to be in the range of $1.12 to $1.16, which includes an estimated favorable currency impact of 6 cents."

In conjunction with its first quarter earnings release, Manpower will broadcast its conference call live over the Internet on April 20, 2007 at 7:30 a.m. CDT (8:30 a.m. EDT). Interested parties are invited to listen to the webcast and view the presentation by logging on to investor.manpower.com.

Supplemental financial information referenced in the conference call can be found at investor.manpower.com.

About Manpower Inc.

Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. The $18 billion company offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower's worldwide network of 4,400 offices in 73 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. Manpower Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. More information on Manpower Inc. is available at www.manpower.com.

Forward-Looking Statements

This news release contains statements, including earning projections, 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. Factors that may cause the Company's actual results to differ materially from those contained in the forward-looking statements can be 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, 2006, which information is incorporated herein by reference.

Manpower Inc.
Results of Operations
(In millions, except per share data)

Three Months Ended March 31
% Variance

Amount Constant
2007 2006 Reported Currency
(Unaudited)

Revenues from services (a) $4,535.6 $3,877.2 17.0% 9.6%

Cost of services 3,735.6 3,184.0 17.3%

Gross profit 800.0 693.2 15.4% 8.5%

Selling and administrative expenses 696.7 632.9 10.1% 3.9%

Operating profit 103.3 60.3 71.2% 57.1%

Interest and other expenses 9.6 13.0 -26.2%

Earnings before income taxes and
discontinued operations 93.7 47.3 97.9% 84.5%

Provision for income taxes 34.2 17.8 91.5%

Net earnings from continuing
operations 59.5 29.5 101.8% 88.1%

Income from discontinued operations,
net of income taxes -- 23.1 N/A

Net earnings $59.5 $52.6 13.1% 5.4%

Net earnings per share - basic:
Continuing operations $0.70 $0.34 105.9%
Discontinued operations -- 0.26 N/A
Total $0.70 $0.60 16.7%

Net earnings per share - diluted:
Continuing operations $0.69 $0.33 109.1% 93.9%
Discontinued operations -- 0.26 N/A
Total $0.69 $0.59 16.9% 8.5%

Weighted average shares - basic 84.9 87.4 -2.9%

Weighted average shares - diluted 86.5 88.7 -2.4%

(a) Revenues from services include fees received from our franchise
offices of $8.4 million and $8.0 million for the three months ended
March 31, 2007 and 2006, respectively. These fees are primarily
based on revenues generated by the franchise offices, which were
$362.4 million and $362.8 million for the three months ended
March 31, 2007 and 2006, respectively.

Manpower Inc.
Operating Unit Results
(In millions)

Three Months Ended March 31
% Variance