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 http://investor.manpower.com/
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, http://www.manpower.com/ . More information can also be found about The Empower Group at its website, http://www.empowergrp.com/ .
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
Footnotes:
(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
(Unaudited)
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
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SOURCE: Manpower Inc.
Contact: Mike Van Handel, Chief Financial Officer of Manpower Inc.,
414-906-6305
Website: http://www.empowergrp.com/
Website: http://investor.manpower.com/
Website: http://www.manpower.com/
