This is the Tagline, edited under "Misc Content"

News Releases

Dark Page

Key Contacts

Sample Left Feature Box

Build feature boxes to go in your left column in Feature Content / Standard in your Site Manager.

Manpower Reports 3rd Quarter 2005 Results

PRNewswire-FirstCall
MILWAUKEE
Oct 19, 2005

Manpower Inc. (NYSE: MAN) today reported that earnings per diluted share for the three months ended September 30, 2005 were 87 cents, the same as the prior year period. Net income in the quarter was $76.3 million compared to $83.4 million a year earlier. Included in the prior year quarter was an $8.0 million adjustment to the income tax provision, resulting in a favorable impact on prior year diluted earnings per share of 8 cents. Revenues for the third quarter totaled $4.1 billion, an increase of 6 percent from the year-earlier period. The impact of changes in foreign currencies between years on third quarter results was negligible.

Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, "Our strong results in the third quarter can be attributed to several Manpower geographies and business units throughout the world relentlessly pursuing our strategies in their markets." Joerres added, "The U.S., Germany, Italy, Japan and Sweden are among the markets that clearly demonstrated our ability to produce solid profit growth as a company. Additionally, our Jefferson Wells and Elan brands both produced solid, sustainable results in the quarter.

"We are anticipating the fourth quarter of 2005 diluted earnings per share to be in the range of 82 to 86 cents, which includes an estimated negative currency impact of 5 cents," Joerres stated.

Earnings per diluted share for the nine months ended September 30, 2005 were $1.88 compared to $1.86 per diluted share in 2004. Net income was $171.0 million compared to $176.1 million the prior year. Revenues for the nine-month period were $12.0 billion, an increase of 10 percent from the prior year. On a constant currency basis, earnings per diluted share for the nine- month period were $1.84 on an 8 percent improvement in revenues.

In addition to the previously discussed income tax adjustment of 8 cents per diluted share, the prior year nine-month results also include a first quarter non-operating gain of $14.2 million ($10.2 million net of income taxes), or 11 cents per diluted share.

In conjunction with its third quarter earnings release, Manpower will broadcast its conference call live over the Internet on October 19, 2005 at 8:00 a.m. CDT (9:00 a.m. EDT). Interested parties are invited to listen to the webcast and view the presentation by logging on to http://investor.manpower.com/ .

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

About Manpower Inc.

Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry, offering customers a continuum of services to meet their needs throughout the employment and business cycle. The company specializes in permanent, temporary and contract recruitment; employee assessment; training; career transition; organizational consulting; and professional financial services. Manpower's worldwide network of 4,300 offices in 72 countries and territories enables the company to meet the needs of its 400,000 customers 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, enabling customers to concentrate on their core business activities. In addition to the Manpower brand, the company operates under the brand names of Right Management Consultants, Jefferson Wells and Elan. More information on Manpower Inc. is available at http://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 'Forward-Looking Statements' in its Annual Report on Form 10-K for the year ended December 31, 2004, which information is incorporated herein by reference.

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

                                          Three Months Ended September 30
                                                             % Variance
                                                           Amount   Constant
                                          2005      2004  Reported  Currency
                                                      (Unaudited)

  Revenues from services (a)            $4,144.8  $3,900.8   6.3%      6.1%

  Cost of services                       3,388.2   3,172.7   6.8%

    Gross profit                           756.6     728.1   3.9%      3.7%

  Selling and administrative expenses      624.6     601.2   3.9%      3.7%

    Operating profit                       132.0     126.9   4.1%      3.8%

  Interest and other expense                11.9       9.1  30.3%

    Earnings before income taxes           120.1     117.8   2.1%

  Provision for income taxes                43.8      34.4  27.5%

    Net earnings                           $76.3     $83.4  -8.5%     -8.7%



  Net earnings per share - basic           $0.88     $0.93  -5.4%

  Net earnings per share - diluted (b)     $0.87     $0.87     -         -


  Weighted average shares - basic           87.0      90.0  -3.4%

  Weighted average shares - diluted (b)     88.2      97.2  -9.2%


  (a)  Revenues from services include fees received from our franchise
       offices of $9.6 million and $8.9 million for the three months ended
       September 30, 2005 and 2004, respectively.  These fees are primarily
       based on revenues generated by the franchise offices, which were
       $396.6 million and $397.0 million for the three months ended
       September 30, 2005 and 2004, respectively.

  (b)  Prior year figures have been restated to reflect the impact of
       applying the "if-converted" method to our convertible debentures.



                              Manpower Inc.
                          Operating Unit Results
                              (In millions)

                                          Three Months Ended September 30
                                                               % Variance
                                                            Amount  Constant
                                            2005     2004  Reported Currency
                                                      (Unaudited)
  Revenues from Services:
    United States (a)                      $531.5    $531.8      -       -
    France                                1,494.6   1,402.0    6.6%    6.9%
    EMEA                                  1,385.5   1,305.4    6.1%    6.7%
    Jefferson Wells                         103.9     110.6   -6.1%   -6.1%
    Right                                    96.0     102.5   -6.4%   -6.9%
    Other Operations                        533.3     448.5   18.9%   15.1%
                                         $4,144.8  $3,900.8    6.3%    6.1%

  Operating Unit Profit:
    United States                           $22.6     $15.6   44.7%   44.7%
    France                                   50.2      55.6   -9.7%   -9.3%
    EMEA                                     46.6      33.9   37.4%   38.0%
    Jefferson Wells                          11.5      25.1  -54.2%  -54.2%
    Right                                     2.1       3.2  -35.2%  -39.8%
    Other Operations                         16.6      10.8   55.2%   49.5%
                                            149.6     144.2
  Corporate expenses                         14.3      14.0
  Amortization of intangible assets           3.3       3.3
      Operating profit                      132.0     126.9    4.1%    3.8%
  Interest and other expense (b)             11.9       9.1
      Earnings before income taxes         $120.1    $117.8


  (a)  In the United States, revenues from services include fees received
       from the related franchise offices of $6.7 million and $6.3 million
       for the three months ended September 30, 2005 and 2004, respectively.
       These fees are primarily based on revenues generated by the franchise
       offices, which were $310.7 million and $318.4 million for the three
       months ended September 30, 2005 and 2004, respectively.

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

          Interest expense                  $12.5     $10.9
          Interest income                    (2.0)     (2.2)
          Foreign exchange gains             (0.2)     (0.4)
          Miscellaneous expenses, net         1.6       0.8
                                            $11.9      $9.1



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

                                           Nine Months Ended September 30
                                                               % Variance
                                                            Amount  Constant
                                          2005      2004  Reported  Currency
                                                    (Unaudited)

  Revenues from services (a)          $11,957.2  $10,857.3   10.1%     7.6%

  Cost of services                      9,779.4    8,833.4   10.7%

    Gross profit                        2,177.8    2,023.9    7.6%     5.3%

  Selling and administrative expenses   1,873.6    1,745.6    7.3%     5.0%

    Operating profit                      304.2      278.3    9.3%     6.9%

  Interest and other expenses              34.9       17.4  100.7%

    Earnings before income taxes          269.3      260.9    3.2%

  Provision for income taxes               98.3       84.8   15.9%

    Net earnings                         $171.0     $176.1   -2.9%    -4.7%



  Net earnings per share - basic          $1.93      $1.99   -3.0%

  Net earnings per share - diluted (b)    $1.88      $1.86    1.1%    -1.1%


  Weighted average shares - basic          88.4       88.5   -0.1%

  Weighted average shares - diluted (b)    91.7       96.4   -4.9%


  (a)  Revenues from services include fees received from our franchise
       offices of $26.7 million and $25.0 million for the nine months ended
       September 30, 2005 and 2004, respectively.  These fees are primarily
       based on revenues generated by the franchise offices, which were
       $1,122.1 million and $1,068.9 million for the nine months ended
       September 30, 2005 and 2004, respectively.

  (b)  Prior year figures have been restated to reflect the impact of
       applying the "if-converted" method to our convertible debentures.



                              Manpower Inc.
                          Operating Unit Results
                              (In millions)


                                          Nine Months Ended September 30
                                                               % Variance
                                                           Amount   Constant
                                       2005       2004    Reported  Currency
                                                   (Unaudited)
  Revenues from Services:
    United States (a)                $1,514.1    $1,523.7   -0.6%     -0.6%
    France                            4,150.4     3,816.8    8.7%      5.8%
    EMEA                              4,137.7     3,648.5   13.4%     10.6%
    Jefferson Wells                     290.1       237.7   22.0%     22.0%
    Right                               308.5       324.2   -4.9%     -6.7%
    Other Operations                  1,556.4     1,306.4   19.1%     15.3%
                                    $11,957.2   $10,857.3   10.1%      7.6%

  Operating Unit Profit:
    United States                       $45.5       $32.5   39.8%     39.8%
    France                              119.2       123.8   -3.7%     -6.0%
    EMEA                                100.0        73.8   35.5%     33.0%
    Jefferson Wells                      28.9        38.2  -24.4%    -24.4%
    Right                                21.2        24.9  -14.8%    -17.3%
    Other Operations                     42.3        35.7   18.6%     14.5%
                                        357.1       328.9
  Corporate expenses                     43.1        41.6
  Amortization of intangible assets       9.8         9.0
      Operating profit                  304.2       278.3    9.3%      6.9%
  Interest and other expenses (b)        34.9        17.4
      Earnings before income taxes     $269.3      $260.9



  (a)  In the United States, revenues from services include fees received
       from the related franchise offices of $18.4 million and $18.3 million
       for the nine months ended September 30, 2005 and 2004, respectively.
       These fees are primarily based on revenues generated by the franchise
       offices, which were $885.1 million and $871.1 million for the nine
       months ended September 30, 2005 and 2004, respectively.

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

          Interest expense                 $34.8      $34.0
          Interest income                   (6.4)      (6.2)
          Foreign exchange gains              -        (0.1)
          Miscellaneous expense
           (income), net                     6.5      (10.3)
                                           $34.9      $17.4



                              Manpower Inc.
                       Consolidated Balance Sheets
                              (In millions)

                                                 Sep. 30           Dec. 31
                                                   2005              2004
                                                        (Unaudited)
  ASSETS
  Current assets:
    Cash and cash equivalents                     $431.7            $531.8
    Accounts receivable, net                     3,214.4           3,227.8
    Prepaid expenses and other assets               98.0             161.4
    Future income tax benefits                     104.5              96.5
        Total current assets                     3,848.6           4,017.5

  Other assets:
    Goodwill and other intangible
     assets, net                                 1,265.8           1,297.0
    Other assets                                   301.5             305.5
        Total other assets                       1,567.3           1,602.5

  Property and equipment:
    Land, buildings, leasehold
     improvements and equipment                    641.7             669.8
    Less:  accumulated depreciation and
     amortization                                  443.8             446.7
      Net property and equipment                   197.9             223.1
          Total assets                          $5,613.8          $5,843.1

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                              $707.8            $687.1
    Employee compensation payable                  156.4             156.0
    Accrued liabilities                            536.0             505.7
    Accrued payroll taxes and insurance            539.6             569.6
    Value added taxes payable                      444.6             457.8
    Short-term borrowings and current
      maturities of long-term debt                 274.2             225.7
        Total current liabilities                2,658.6           2,601.9

  Other liabilities:
    Long-term debt                                 481.3             676.1
    Other long-term liabilities                    364.7             391.1
        Total other liabilities                    846.0           1,067.2

  Shareholders' equity:
    Common stock                                     1.0               1.0
    Capital in excess of par value               2,334.6           2,296.4
    Retained earnings                              204.4              51.0
    Accumulated other comprehensive income          15.1             109.4
    Treasury stock, at cost                       (445.9)           (283.8)
        Total shareholders' equity               2,109.2           2,174.0
          Total liabilities and
           shareholders' equity                 $5,613.8          $5,843.1



                              Manpower Inc.
                  Consolidated Statements of Cash Flows
                              (In millions)

                                                     Nine Months Ended
                                                        September 30
                                                   2005              2004
                                                        (Unaudited)
  Cash Flows from Operating Activities:
    Net earnings                                  $171.0            $176.1
    Adjustments to reconcile net
     earnings to net cash provided by operating
     activities:
        Depreciation and amortization               67.7              62.6
        Amortization of discount on
         convertible debentures                      1.9               5.8
        Deferred income taxes                      (10.2)            (11.6)
        Provision for doubtful accounts             16.9              20.1
        Other non-operating gains                     -              (14.2)
        Changes in operating assets and
         liabilities excluding the impact
         of acquisitions:
            Accounts receivable                   (307.1)           (409.7)
            Other assets                           (30.2)             14.6
            Other liabilities                      263.8             218.4
              Cash provided by
               operating activities                173.8              62.1

  Cash Flows from Investing Activities:
    Capital expenditures                           (55.9)            (42.7)
    Acquisitions of businesses, net of
     cash acquired                                  (3.5)           (113.8)
    Proceeds from sale of an equity interest          -               29.8
    Proceeds from the sale of property
     and equipment                                   4.5               4.8
              Cash used by investing
               activities                          (54.9)           (121.9)

  Cash Flows from Financing Activities:
    Net borrowings of short-term
      facilities and long-term debt                181.0               5.3
    Cash paid to settle convertible
     debentures                                   (206.6)               -
    Proceeds from settlement of swap
     agreements                                     50.7                -
    Proceeds from stock option and
     purchase plans                                 18.9              55.4
    Repurchases of common stock                   (203.5)               -
    Dividends paid                                 (17.6)             (9.1)
              Cash (used) provided by
               financing activities               (177.1)             51.6

  Effect of exchange rate changes on cash          (41.9)             (3.2)
  Change in cash and cash equivalents             (100.1)            (11.4)

  Cash and cash equivalents, beginning
   of period                                       531.8             426.2
  Cash and cash equivalents, end of period        $431.7            $414.8

SOURCE: Manpower Inc.

CONTACT: Mike Van Handel, Chief Financial Officer of Manpower Inc.,
+1-414-906-6305

Web site: http://www.manpower.com/


print email rss