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Manpower Reports 1st Quarter 2008 Results

PRNewswire-FirstCall
MILWAUKEE
Apr 18, 2008

Manpower Inc. (NYSE: MAN) today reported that net earnings for the three months ended March 31, 2008 increased 27%, to $75.5 million, or 94 cents per diluted share, compared to $59.5 million, or 69 cents per diluted share, a year earlier. Revenues for the first quarter were $5.4 billion, an increase of 19 percent from the year earlier period.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060221/CGTU012LOGO)

Results for the first quarter were favorably impacted by 14 cents per diluted share as foreign currencies were relatively stronger compared to the first quarter of 2007. On a constant currency basis, revenues increased 8 percent over the prior year period.

Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, "The first quarter performance underscores, once again, the strength of our geographic and service line portfolio. Operations like Elan, Germany and Italy performed extremely well with local currency revenue growth of 43%, 22% and 15%, respectively. In these important markets, while we remain on guard, we do not detect any material slowing in our business.

"While economic conditions remain uncertain in parts of the world, we believe our team, coupled with the strength of our portfolio of services, will deliver solid results in the second quarter. We anticipate our second quarter diluted earnings per share to be in the range of $1.47 to $1.51, which includes an estimated favorable currency impact of 20 cents."

In conjunction with its first quarter earnings release, Manpower will broadcast its conference call live over the Internet on April 18, 2008 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 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; creating and delivering services that enable its clients to win in the changing world of work. Celebrating its 60th anniversary in 2008, the $21 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 4,500 offices in 80 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 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 'Risk Factors' in its Annual Report on Form 10-K for the year ended December 31, 2007, 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
                          2008         2007         Reported     Currency
                                          (Unaudited)

  Revenues from
   services(a)          $5,386.6     $4,535.6        18.8%         7.6%
  Cost of services       4,418.9      3,735.6        18.3%
    Gross profit           967.7        800.0        21.0%         9.9%
  Selling and
   administrative
   expenses                835.7        696.7        19.9%         9.7%
    Operating profit       132.0        103.3        27.8%        10.8%
  Interest and other
   expenses                 11.3          9.6        18.4%
    Earnings before
     income taxes          120.7         93.7        28.8%         9.7%
  Provision for
   income taxes             45.2         34.2        32.1%
    Net earnings           $75.5        $59.5        26.9%         8.1%
  Net earnings per
   share - basic           $0.95        $0.70        35.7%
  Net earnings per
   share - diluted         $0.94        $0.69        36.2%        15.9%
  Weighted average
   shares - basic           79.5         84.9        -6.4%
  Weighted average
   shares - diluted         80.3         86.5        -7.2%

  (a) Revenues from services include fees received from our franchise
      offices of $7.3 million and $8.4 million for the three months ended
      March 31, 2008 and 2007, respectively. These fees are primarily based
      on revenues generated by the franchise offices which were
      $304.0 million and $362.4 million for the three months ended March 31,
      2008 and 2007, respectively.



                              Manpower Inc.
                          Operating Unit Results
                              (In millions)

                                   Three Months Ended March 31
                                                         % Variance
                                                     Amount      Constant
                           2008         2007        Reported     Currency
                                           (Unaudited)
  Revenues from Services:
    United States(a)      $471.5       $483.6        -2.5%        -2.5%
    France               1,734.0      1,493.0        16.1%         1.5%
    Other EMEA           1,853.7      1,476.4        25.6%        14.6%
    Italy                  401.2        304.8        31.6%        15.0%
    Jefferson Wells         77.4         81.3        -4.7%        -4.7%
    Right Management       103.3         93.9        10.1%         4.5%
    Other Operations       745.5        602.6        23.7%        11.8%
                         5,386.6     $4,535.6        18.8%         7.6%

  Operating Unit Profit:
    United States           $7.2        $11.5       -37.6%       -37.6%
    France                  54.0         43.9        22.9%         7.3%
    Other EMEA              47.7         36.7        30.0%        17.2%
    Italy                   29.1         16.4        77.0%        54.6%
    Jefferson Wells         (2.6)         1.0         N/A          N/A
    Right Management         6.7          6.1         8.9%         9.4%
    Other Operations        21.3         12.8        67.8%        49.2%
                           163.4        128.4
  Corporate expenses        28.2         21.9
  Amortization of
   intangible assets         3.2          3.2
    Operating profit       132.0        103.3        27.8%        10.8%
  Interest and
   other expenses(b)        11.3          9.6
    Earnings before
     income taxes         $120.7        $93.7

  (a) In the United States, revenues from services include fees received
      from our franchise offices of $4.6 million and $5.3 million for the
      three months ended March 31, 2008 and 2007, respectively. These fees
      are primarily based on revenues generated by the franchise offices,
      which were $212.7 million and $269.1 million for the three months
      ended March 31, 2008 and 2007, respectively.

  (b) The components of interest and other expenses were:

      Interest expense     $15.6        $12.0
      Interest income       (5.1)        (5.0)
      Foreign exchange
       (gain) loss          (1.9)         0.1
      Miscellaneous
       expenses, net         2.7          2.5
                           $11.3         $9.6



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

                                                          Year Ended
                                                            Mar. 31
                                                      2008           2007
                                                          (Unaudited)
  Cash Flows from Operating Activities:
    Net earnings                                     $75.5          $59.5
    Adjustments to reconcile net earnings
     to net cash provided by operating activities:
      Depreciation and amortization                   24.7           21.5
      Deferred income taxes                           (2.1)          15.7
      Provision for doubtful accounts                  7.3            5.1
      Share-based compensation                         8.9            5.7
      Excess tax benefit on exercise
       of stock options                               (0.1)          (2.3)
    Changes in operating assets and
     liabilities, excluding
     the impact of acquisitions:
      Accounts receivable                             28.6           88.2
      Other assets                                    (3.6)         (33.4)
      Other liabilities                              (33.4)         (57.2)
        Cash provided by operating activities        105.8          102.8

  Cash Flows from Investing Activities:
    Capital expenditures                             (23.8)         (16.8)
    Acquisitions of businesses,
     net of cash acquired                             (0.8)          (5.0)
    Proceeds from the sale of
     property and equipment                            1.8            1.6
        Cash used by investing activities            (22.8)         (20.2)

  Cash Flows from Financing Activities:
    Net borrowings of short-term
     facilities and long-term debt                    10.9            3.8
    Proceeds from stock option and purchase plans      8.8           20.0
    Excess tax benefit on exercise of stock options    0.1            2.3
    Repurchases of common stock                      (52.7)         (72.7)
        Cash used by financing activities            (32.9)         (46.6)

  Effect of exchange rate changes on cash             52.9            3.4
  Change in cash and cash equivalents                103.0           39.4

  Cash and cash equivalents, beginning of period     537.5          687.9
  Cash and cash equivalents, end of period          $640.5         $727.3



                              Manpower Inc.
                       Consolidated Balance Sheets
                              (In millions)

                                                   Mar. 31       Dec. 31
                                                     2008          2007
                                                        (Unaudited)
  ASSETS
  Current assets:
    Cash and cash equivalents                       $640.5         $537.5
    Accounts receivable, net                       4,724.6        4,478.8
    Prepaid expenses and other assets                138.8          122.2
    Future income tax benefits                        86.6           76.3
      Total current assets                         5,590.5        5,214.8

  Other assets:
    Goodwill and other intangible assets, net      1,413.2        1,410.7
    Other assets                                     423.2          377.7
      Total other assets                           1,836.4        1,788.4

  Property and equipment:
    Land, buildings, leasehold
     improvements and equipment                      814.9          760.8
    Less: accumulated depreciation
     and amortization                                584.1          539.6
      Net property and equipment                     230.8          221.2
        Total assets                              $7,657.7       $7,224.4

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                              $1,176.7       $1,014.4
    Employee compensation payable                    207.3          213.6
    Accrued liabilities                              699.2          679.4
    Accrued payroll taxes and insurance              699.1          724.7
    Value added taxes payable                        614.0          583.7
    Short-term borrowings and current
     maturities of long-term debt                     52.5           39.7
      Total current liabilities                    3,448.8        3,255.5

  Other liabilities:
    Long-term debt                                   946.0          874.8
    Other long-term liabilities                      442.3          424.8
      Total other liabilities                      1,388.3        1,299.6

  Shareholders' equity:
    Common stock                                       1.0            1.0
    Capital in excess of par value                 2,498.4        2,481.8
    Retained earnings                              1,115.9        1,040.3
    Accumulated other comprehensive income           358.9          257.6
    Treasury stock, at cost                       (1,153.6)      (1,111.4)
      Total shareholders' equity                   2,820.6        2,669.3
        Total liabilities and
         shareholders' equity                     $7,657.7       $7,224.4

First Call Analyst:
FCMN Contact: linda.granrose@na.manpower.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20060221/CGTU012LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Manpower Inc.

CONTACT: Mike Van Handel of Manpower Inc., +1-414-906-6305,
michael.vanhandel@manpower.com

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


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