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Manpower Reports 1st Quarter Results; Earnings Per Share Rise 6% on 3% Revenue Gain

Apr 23, 2001

MILWAUKEE, April 23 /PRNewswire Interactive News Release/ --

Manpower Inc. (NYSE: MAN) today reported that net income for the three months ended March 31, 2001 rose 5 percent to $26.8 million, or 35 cents per diluted share, from $25.6 million, or 33 cents per diluted share, a year earlier. Revenues for the first quarter were up 3 percent from the year-ago period to $2.7 billion. Results for the quarter were affected by relatively weaker foreign currencies compared to the prior year period and a further contraction throughout the quarter in our U.S. operation. On a constant currency basis, earnings per share rose 15% on a 9% revenue increase.

"As we anticipated, the strength of our European operations allowed us to meet our profit forecasts despite a weakening market in the U.S.," Manpower President and Chief Executive Officer Jeffrey A. Joerres said. Operating profits in Europe grew 36% in constant currency on a 12% revenue increase. Joerres also noted that the gross profit margin improved in the quarter to 18.2% from 17.4% a year earlier, reflecting the Company's continued focus on business mix and pricing.

Commenting on the outlook for the balance of the year Joerres stated, "Given the highly uncertain economic outlook, profit forecasts are difficult. It's inevitable that the economic slowing in the U.S. will have some impact on other markets of the world in which the Company operates, but predicting the exact impact would be too speculative. With that in mind, we estimate earnings per share in the second quarter will range between 47 and 51 cents and that earnings per share for the year will range between $2.14 and $2.30."

In conjunction with its first quarter earnings release, Manpower will broadcast its conference call live over the Internet on April 24, 2001 at 9:00 a.m. CDT (10:00 a.m. EDT). Interested parties are invited to listen by logging on to

Manpower Inc. is a world leader in the staffing industry, providing workforce management services and solutions to customers through 3,700 offices in 59 countries. The firm annually provides employment to more than 2.7 million people worldwide and is an industry leader in employee assessment and training. Manpower also offers organizational performance consulting services worldwide through its independent operating division, The Empower Group. More information on Manpower Inc. can be found at the company's website, . More information can also be found about The Empower Group at its website, .

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 statement can be found in the Company's reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2000, which information is incorporated herein by reference.

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

                                            Three Months Ended March 31
                                             2001         2000      Variance

  Systemwide sales                         $3,011.1     $2,972.5      1.3%

  Revenue from services                     2,651.9      2,568.3      3.3%
  Cost of services                          2,168.0      2,122.3      2.2%

    Gross profit                              483.9        446.0      8.5%

  Selling and administrative expenses         431.7        395.5      9.2%

    Operating profit                           52.2         50.5      3.4%

  Interest and other expenses                  10.3         10.8     (4.7%)

    Earnings before income taxes               41.9         39.7      5.5%

  Provision for income taxes                   15.1         14.1      7.1%

    Net earnings                              $26.8        $25.6      4.7%

  Net earnings per share - basic              $0.35        $0.34      2.9%

  Net earnings per share - diluted            $0.35        $0.33      6.1%

  Weighted average shares - basic              75.8         76.1     (0.4%)

  Weighted average shares - diluted            76.9         77.2     (0.3%)

                                Manpower Inc.
                           Operating Unit Results
                          (Unaudited, in millions)

                                                     Three Months Ended
                                                          March 31
                                                   2001              2000
  Revenues from services:
    United States (a)                             $546.3            $563.9
    France                                         939.2             913.6
    United Kingdom                                 381.0             365.0
    Other Europe                                   499.4             459.5
    Other Countries                                286.0             266.3
                                                $2,651.9          $2,568.3

  Operating Unit Profit:
    United States                                   $8.2             $15.4
    France                                          26.3              20.8
    United Kingdom                                   9.8               8.0
    Other Europe                                    19.3              14.7
    Other Countries                                  2.0               3.7
                                                    65.6              62.6
    Corporate expenses                               9.6               8.5
    Amortization of intangibles                      3.8               3.6
      Operating profit                              52.2              50.5
    Interest and other expense (b)                  10.3              10.8
      Earnings before taxes                        $41.9             $39.7


  (a) Total systemwide sales in the United States, which includes sales of
      Company-owned branches and franchises were $861.5 and $922.1 for the
      three months ended March 31, 2001 and 2000, respectively.

  (b) The components of interest and other expense (income) were:

              Interest expense                      $8.7              $7.9
              Interest income                       (2.7)             (2.0)
              Translation loss (gain)                0.7               1.1
              Loss on sale of accounts
               receivable                            2.3               3.2
              Miscellaneous                          1.3               0.6
                                                   $10.3             $10.8

                                Manpower Inc.
                          Condensed Balance Sheets
                                (In millions)

                                                March 31          Dec. 31
                                                  2001              2000
  Current assets:
    Cash and cash equivalents                     $173.5            $181.7
    Accounts receivable                          1,988.2           2,094.4
    Prepaid expenses and other assets              128.4             120.6

      Total current assets                       2,290.1           2,396.7

  Other assets                                     461.7             453.3

  Property and equipment                           186.7             191.6

      Total assets                              $2,938.5          $3,041.6

  Current liabilities:
    Accounts payable                              $462.8            $453.1
    Employee compensation payable                   73.1              81.2
    Accrued liabilities                            283.4             269.2
    Accrued payroll taxes and insurance            319.0             341.8
    Value added tax payable                        273.5             311.0
    Short-term borrowings and current
      maturities of long-term debt                  17.9              65.9

      Total current liabilities                  1,429.7           1,522.2

  Other liabilities:
    Long-term debt                                 492.9             491.6
    Other long-term liabilities                    291.9             287.4

      Total other liabilities                      784.8             779.0

  Shareholders' equity                             724.0             740.4

    Total liabilities and shareholders'
     equity                                     $2,938.5          $3,041.6


SOURCE: Manpower Inc.

Contact: Mike Van Handel, Chief Financial Officer of Manpower Inc.,