DOW JONES NEWSWIRES
Manpower Inc.'s (MAN) first-quarter net income slid 97% as a
European slump and a reorganization charge hurt results.
However, Chairman and Chief Executive Jeffrey A. Joerres said
the U.S. and French markets experienced "revenue stability over the
last five weeks" - the longest such string in the U.S. in four
quarters. He predicted the company would maintain profitability in
the second quarter.
The results were better than expected. In February, Manpower
warned it would post a first-quarter loss because of sharply
declining sales.
Times have been tough for companies like Manpower, the world's
No. 2 staffing agency by sales behind Adecco SA (ADEN.VX), as
jobless rates have soared around the globe. Companies are
hestitating to hire amid weak demand, and temporary workers are the
first to be axed as businesses cut costs.
Manpower posted net income of $2.3 million, or 3 cents a share,
down from $75.5 million, or 94 cents a share, a year earlier. The
most recent results included a 6-cent reorganization charge.
Revenue decreased 32% to $3.65 billion. On a constant currency
basis, revenue fell 22%.
The latest average of analysts surveyed by Thomson Reuters was
for an 8-cent loss and revenue of $4.03 billion.
Gross margin ticked up to 18.4% from 18%.
Manpower's U.S. profit fell 40% on a 21% revenue drop. Europe,
the Middle East and Africa saw profit slide 77% on a 34% revenue
drop. Two-thirds of Manpower's revenue comes from Europe, with
one-third from France alone.
Manpower shares closed at $34.26 Monday and haven't traded
premarket. They've lost 47% the past year, but have rebounded some
50% the past six weeks.
-By Joan E. Solsman and Mike Barris, Dow Jones Newswires;
201-938-5500; joan.solsman@dowjones.com