ManpowerGroup Reports 3rd Quarter 2024 Results
ManpowerGroup (NYSE: MAN) reported Q3 2024 results with revenues of $4.5 billion, a 3% decrease from the prior year. Net earnings were $22.8 million or $0.47 per diluted share, compared to $30.3 million or $0.60 per share in Q3 2023. Excluding restructuring costs and a discrete tax item, earnings per share were $1.29, an 8% decrease in constant currency.
The company faced challenging conditions in North America and Europe, while experiencing good demand in Latin America and Asia-Pacific. ManpowerGroup launched innovative branch offices inside select Walmart locations in the U.S. and reached an agreement to sell its South Korea business. The company repurchased $29 million of common stock during the quarter.
For Q4 2024, ManpowerGroup anticipates diluted earnings per share between $0.98 and $1.08, including an estimated unfavorable currency impact of 1 cent.
- Gross profit margin remained solid at 17.3%
- Permanent recruitment levels stable
- SG&A reductions reflect adjustments to market conditions (-5% both as reported and constant currency)
- Launched innovative Manpower branch offices inside select Walmart locations in the U.S.
- Reached agreement to sell South Korea business, to operate as a Manpower Franchise in the future
- $29 million of common stock repurchased during the quarter
- Revenues decreased by 3% (2% in constant currency) to $4.5 billion
- Net earnings per share decreased from $0.60 to $0.47 year-over-year
- Challenging environment in North America and Europe
- Restructuring costs and a discrete tax item reduced earnings per share by $0.82 in Q3
- Nine-month net earnings decreased from $3.42 to $2.53 per diluted share year-over-year
Insights
ManpowerGroup's Q3 2024 results reflect ongoing challenges in key markets. Revenues decreased by
Notably, earnings per share (EPS) fell to
The company's cost-cutting measures, evidenced by a
For investors, the
The global staffing market is facing headwinds, particularly in developed economies. ManpowerGroup's results highlight a dichotomy between regions, with North America and Europe experiencing challenges while Latin America and Asia-Pacific show good demand. This geographic diversification helps buffer against localized economic slowdowns.
The stability in permanent recruitment levels is a positive sign, indicating that while companies are cautious, they are still investing in long-term talent acquisition. The innovative approach of opening Manpower branches in Walmart stores is a strategic move to tap into a broader talent pool and increase visibility among job seekers.
The decision to sell the South Korea business and convert it to a franchise model aligns with a trend of localizing operations in competitive Asian markets. This could potentially reduce operational costs while maintaining brand presence. The company's focus on "Diversification, Digitization and Innovation" initiatives suggests a forward-looking strategy to adapt to changing labor market dynamics and technological advancements in recruitment processes.
Overall, while the current environment is challenging, ManpowerGroup's strategic actions and global presence position it to navigate the downturn and potentially emerge stronger when labor markets improve.
- Revenues of
$4.5 billion 3% as reported, -2% constant currency) - Continuation of challenging environment in
North America andEurope during the quarter, good demand inLatin America andAsia-Pacific region - Gross profit margin of
17.3% . Staffing margins remained solid; permanent recruitment levels stable - SG&A reductions reflect adjustments to market conditions during the quarter (-
5% both as reported and constant currency as adjusted1) U.S. business launched innovative Manpower branch offices inside select Walmart locations during the quarter- Reached agreement to sell our
South Korea business, which will operate as a Manpower Franchise in the future $29 million
The current year quarter included restructuring costs and a discrete tax item which reduced earnings per share by
Financial results in the quarter were also impacted by the
Jonas Prising, ManpowerGroup Chairman & CEO, said, "The operating environment has not changed significantly through the third quarter and employers in
We anticipate diluted earnings per share in the fourth quarter will be between
Net earnings for the nine months ended September 30, 2024 were
In conjunction with its third quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on October 17, 2024 at 7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the conference call, webcast details, presentation and recordings are included within the Investor Relations section of manpowergroup.com.
Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.
About ManpowerGroup
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 70 countries and territories and has done so for 75 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability, and in 2024 ManpowerGroup was named one of the World's Most Ethical Companies for the 15th time – all confirming our position as the brand of choice for in-demand talent. For more information, visit www.manpowergroup.com.
Forward-Looking Statements
This press release contains statements, including statements regarding economic and geopolitical uncertainty, trends in labor demand and the future strengthening of such demand, financial outlook, the expected closing of the sale of the
The Company assumes no obligation to update or revise any forward-looking statements. We reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include a reconciliation of these measures, where appropriate, to GAAP on the Investor Relations section of our website at manpowergroup.com.
1 Adjusted to exclude restructuring costs of
2 The prior year period included restructuring costs, a small loss from the sale of our
3 The third quarter earnings per share guidance estimated a negative
4 The prior year period included restructuring costs, a small loss from the sale of our
ManpowerGroup | |||||
Results of Operations | |||||
(In millions, except per share data) | |||||
| Three Months Ended September 30 | |||||
| % Variance | |||||
| Amount | Constant | ||||
| 2024 | 2023 | Reported | Currency | ||
(Unaudited) | |||||
Revenues from services (a) | $ 4,530.2 | $ 4,675.6 | -3.1 % | -1.8 % | |
Cost of services | 3,748.1 | 3,853.7 | -2.7 % | -1.5 % | |
Gross profit | 782.1 | 821.9 | -4.8 % | -3.7 % | |
Selling and administrative expenses | 711.3 | 752.1 | -5.4 % | -4.4 % | |
Operating profit | 70.8 | 69.8 | 1.5 % | 4.5 % | |
Interest and other expenses, net | 11.6 | 15.1 | -23.3 % | ||
Earnings before income taxes | 59.2 | 54.7 | 8.3 % | 6.4 % | |
Provision for income taxes | 36.4 | 24.4 | 49.2 % | ||
Net earnings | $ 22.8 | $ 30.3 | -24.7 % | -26.1 % | |
Net earnings per share - basic | $ 0.48 | $ 0.61 | -21.7 % | ||
Net earnings per share - diluted | $ 0.47 | $ 0.60 | -21.6 % | -23.0 % | |
Weighted average shares - basic | 47.6 | 49.5 | -3.9 % | ||
Weighted average shares - diluted | 48.1 | 50.1 | -4.0 % | ||
(a) Revenues from services include fees received from our franchise offices of | |||||
ManpowerGroup | |||||
Operating Unit Results | |||||
(In millions) | |||||
| Three Months Ended September 30 | |||||
| % Variance | |||||
| Amount | Constant | ||||
| 2024 | 2023(a) | Reported | Currency | ||
(Unaudited) | |||||
Revenues from Services: | |||||
| |||||
United States (b) | $ 697.4 | $ 730.2 | -4.5 % | -4.5 % | |
Other Americas | 353.1 | 381.1 | -7.3 % | 13.1 % | |
1,050.5 | 1,111.3 | -5.5 % | 1.5 % | ||
| |||||
| 1,179.7 | 1,209.9 | -2.5 % | -3.3 % | |
| 419.1 | 413.7 | 1.3 % | 0.5 % | |
Other Southern Europe | 496.8 | 485.1 | 2.4 % | 2.1 % | |
2,095.6 | 2,108.7 | -0.6 % | -1.3 % | ||
| 828.3 | 914.2 | -9.4 % | -11.0 % | |
APME | 562.8 | 564.8 | -0.3 % | 1.6 % | |
4,537.2 | 4,699.0 | ||||
Intercompany Eliminations | (7.0) | (23.4) | |||
$ 4,530.2 | $ 4,675.6 | -3.1 % | -1.8 % | ||
Operating Unit Profit (Loss): | |||||
| |||||
| $ 22.3 | $ 24.5 | -9.0 % | -9.0 % | |
Other Americas | 13.8 | 13.4 | 3.4 % | 9.0 % | |
36.1 | 37.9 | -4.6 % | -2.7 % | ||
| |||||
| 41.7 | 47.9 | -13.0 % | -13.5 % | |
| 27.4 | 27.0 | 1.1 % | -0.1 % | |
Other Southern Europe | 6.7 | 9.5 | -27.5 % | -25.7 % | |
75.8 | 84.4 | -10.1 % | -10.6 % | ||
| (25.7) | (30.6) | 16.1 % | 18.7 % | |
APME | 23.0 | 24.2 | -5.5 % | -1.9 % | |
109.2 | 115.9 | ||||
Corporate expenses | (30.2) | (37.4) | |||
Intangible asset amortization expense | (8.2) | (8.7) | |||
Operating profit | 70.8 | 69.8 | 1.5 % | 4.5 % | |
Interest and other expenses, net (c) | (11.6) | (15.1) | |||
Earnings before income taxes | $ 59.2 | $ 54.7 | |||
(a) Effective January 1, 2024, our segment reporting was realigned to include our | |||||
(b) In | |||||
(c) The components of interest and other expenses, net were: | |||||
| 2024 | 2023 | ||||
Interest expense | $ 24.6 | $ 21.0 | |||
Interest income | (7.7) | (8.0) | |||
Foreign exchange loss | 1.0 | 6.0 | |||
Miscellaneous income | (6.3) | (3.9) | |||
$ 11.6 | $ 15.1 | ||||
ManpowerGroup | |||||
Results of Operations | |||||
(In millions, except per share data) | |||||
| Nine Months Ended September 30 | |||||
| % Variance | |||||
| Amount | Constant | ||||
| 2024 | 2023 | Reported | Currency | ||
(Unaudited) | |||||
Revenues from services (a) | $ 13,454.2 | $ 14,284.0 | -5.8 % | -3.6 % | |
Cost of services | 11,122.5 | 11,736.7 | -5.2 % | -3.0 % | |
Gross profit | 2,331.7 | 2,547.3 | -8.5 % | -6.6 % | |
Selling and administrative expenses | 2,093.9 | 2,252.0 | -7.0 % | -5.4 % | |
Operating profit | 237.8 | 295.3 | -19.5 % | -15.6 % | |
Interest and other expenses, net | 28.7 | 34.4 | -16.6 % | ||
Earnings before income taxes | 209.1 | 260.9 | -19.8 % | -16.8 % | |
Provision for income taxes | 86.5 | 87.6 | -1.2 % | ||
Net earnings | $ 122.6 | $ 173.3 | -29.3 % | -26.6 % | |
Net earnings per share - basic | $ 2.56 | $ 3.46 | -26.0 % | ||
Net earnings per share - diluted | $ 2.53 | $ 3.42 | -26.0 % | -23.2 % | |
Weighted average shares - basic | 47.9 | 50.1 | -4.4 % | ||
Weighted average shares - diluted | 48.5 | 50.7 | -4.4 % | ||
(a) Revenues from services include fees received from our franchise offices of | |||||
ManpowerGroup | |||||
Operating Unit Results | |||||
(In millions) | |||||
| Nine Months Ended September 30 | |||||
| % Variance | |||||
| Amount | Constant | ||||
| 2024 | 2023(a) | Reported | Currency | ||
(Unaudited) | |||||
Revenues from Services: | |||||
| |||||
United States (b) | $ 2,074.8 | $ 2,180.9 | -4.9 % | -4.9 % | |
Other Americas | 1,076.5 | 1,159.3 | -7.1 % | 14.2 % | |
3,151.3 | 3,340.2 | -5.7 % | 1.8 % | ||
| |||||
| 3,483.9 | 3,657.4 | -4.7 % | -5.0 % | |
| 1,258.3 | 1,293.7 | -2.7 % | -3.0 % | |
Other Southern Europe | 1,432.7 | 1,452.4 | -1.4 % | -0.4 % | |
6,174.9 | 6,403.5 | -3.6 % | -3.5 % | ||
| 2,535.9 | 2,834.3 | -10.5 % | -11.7 % | |
APME | 1,639.3 | 1,770.1 | -7.4 % | -1.8 % | |
13,501.4 | 14,348.1 | ||||
Intercompany Eliminations | (47.2) | (64.1) | |||
$ 13,454.2 | $ 14,284.0 | -5.8 % | -3.6 % | ||
Operating Unit Profit (Loss): | |||||
| |||||
| $ 61.7 | $ 77.6 | -20.6 % | -20.6 % | |
Other Americas | 45.6 | 52.1 | -12.4 % | -2.4 % | |
107.3 | 129.7 | -17.3 % | -13.3 % | ||
| |||||
| 115.1 | 142.3 | -19.1 % | -19.2 % | |
| 88.8 | 94.0 | -5.6 % | -5.9 % | |
Other Southern Europe | 25.0 | 30.6 | -18.0 % | -15.3 % | |
228.9 | 266.9 | -14.2 % | -14.1 % | ||
| (28.1) | (35.3) | 20.5 % | 20.8 % | |
APME | 67.9 | 71.0 | -4.4 % | 3.4 % | |
376.0 | 432.3 | ||||
Corporate expenses | (113.6) | (110.8) | |||
Intangible asset amortization expense | (24.6) | (26.2) | |||
Operating profit | 237.8 | 295.3 | -19.5 % | -15.6 % | |
Interest and other expenses, net (c) | (28.7) | (34.4) | |||
Earnings before income taxes | $ 209.1 | $ 260.9 | |||
(a) Effective January 1, 2024, our segment reporting was realigned to include our | |||||
(b) In | |||||
(c) The components of interest and other expenses, net were: | |||||
| 2024 | 2023 | ||||
Interest expense | $ 67.0 | $ 59.7 | |||
Interest income | (24.4) | (24.5) | |||
Foreign exchange loss | 5.2 | 14.2 | |||
Miscellaneous income | (19.1) | (15.0) | |||
$ 28.7 | $ 34.4 | ||||
ManpowerGroup | |||||
Consolidated Balance Sheets | |||||
(In millions) | |||||
| Sep. 30, | Dec. 31, | ||||
| 2024 | 2023 | ||||
(Unaudited) | |||||
| ASSETS | |||||
| Current assets: | |||||
Cash and cash equivalents | $ 410.9 | $ 581.3 | |||
Accounts receivable, net | 4,592.8 | 4,830.0 | |||
Prepaid expenses and other assets | 178.9 | 160.8 | |||
Total current assets | 5,182.6 | 5,572.1 | |||
| Other assets: | |||||
Goodwill | 1,594.1 | 1,586.8 | |||
Intangible assets, net | 498.1 | 519.6 | |||
Operating lease right-of-use assets | 385.6 | 414.0 | |||
Other assets | 691.1 | 607.8 | |||
Total other assets | 3,168.9 | 3,128.2 | |||
| Property and equipment: | |||||
Land, buildings, leasehold improvements and equipment | 539.5 | 526.5 | |||
Less: accumulated depreciation and amortization | 412.7 | 396.6 | |||
Net property and equipment | 126.8 | 129.9 | |||
Total assets | $ 8,478.3 | $ 8,830.2 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
Accounts payable | $ 2,616.1 | $ 2,723.0 | |||
Employee compensation payable | 235.3 | 243.1 | |||
Accrued liabilities | 627.0 | 693.0 | |||
Accrued payroll taxes and insurance | 618.4 | 695.8 | |||
Value added taxes payable | 403.4 | 432.7 | |||
Short-term borrowings and current maturities of long-term debt | 24.8 | 12.1 | |||
Total current liabilities | 4,525.0 | 4,799.7 | |||
| Other liabilities: | |||||
Long-term debt | 999.7 | 990.5 | |||
Long-term operating lease liability | 299.0 | 323.2 | |||
Other long-term liabilities | 476.9 | 482.7 | |||
Total other liabilities | 1,775.6 | 1,796.4 | |||
| Shareholders' equity: | |||||
ManpowerGroup shareholders' equity | |||||
Common stock | 1.2 | 1.2 | |||
Capital in excess of par value | 3,539.5 | 3,514.9 | |||
Retained earnings | 3,862.1 | 3,813.0 | |||
Accumulated other comprehensive loss | (469.9) | (466.0) | |||
Treasury stock, at cost | (4,756.8) | (4,639.8) | |||
Total ManpowerGroup shareholders' equity | 2,176.1 | 2,223.3 | |||
Noncontrolling interests | 1.6 | 10.8 | |||
Total shareholders' equity | 2,177.7 | 2,234.1 | |||
Total liabilities and shareholders' equity | $ 8,478.3 | $ 8,830.2 | |||
ManpowerGroup | ||||
Consolidated Statements of Cash Flows | ||||
(In millions) | ||||
| Nine Months Ended | ||||
| September 30, | ||||
| 2024 | 2023 | |||
(Unaudited) | ||||
| Cash Flows from Operating Activities: | ||||
Net earnings | $ 122.6 | $ 173.3 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 64.8 | 64.3 | ||
Loss on sales of subsidiaries, net | - | 1.3 | ||
Deferred income taxes | 2.0 | 12.3 | ||
Provision for doubtful accounts | 6.0 | 5.4 | ||
Share-based compensation | 22.0 | 20.0 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 237.8 | 460.2 | ||
Other assets | (108.7) | (51.3) | ||
Other liabilities | (284.9) | (451.0) | ||
Cash provided by operating activities | 61.6 | 234.5 | ||
| Cash Flows from Investing Activities: | ||||
Capital expenditures | (39.8) | (55.1) | ||
Acquisition of business, net of cash acquired | (4.9) | - | ||
Proceeds from the sales of subsidiaries and property and equipment | 2.8 | 2.6 | ||
Cash used in investing activities | (41.9) | (52.5) | ||
| Cash Flows from Financing Activities: | ||||
Net change in short-term borrowings | 13.9 | (13.7) | ||
Proceeds from long-term debt | 0.6 | 0.7 | ||
Repayments of long-term debt | (1.2) | (0.7) | ||
Payments of contingent consideration for acquisitions | (2.8) | - | ||
Proceeds from share-based awards | 0.8 | 1.8 | ||
Payments to noncontrolling interests | (0.2) | (0.6) | ||
Other share-based award transactions | (10.4) | (10.3) | ||
Repurchases of common stock | (106.0) | (129.8) | ||
Dividends paid | (73.5) | (73.1) | ||
Cash used in financing activities | (178.8) | (225.7) | ||
Effect of exchange rate changes on cash | (11.3) | (24.2) | ||
Change in cash and cash equivalents | (170.4) | (67.9) | ||
Cash and cash equivalents, beginning of period | 581.3 | 639.0 | ||
Cash and cash equivalents, end of period | $ 410.9 | $ 571.1 | ||
View original content to download multimedia:https://www.prnewswire.com/news-releases/manpowergroup-reports-3rd-quarter-2024-results-302278603.html
SOURCE ManpowerGroup
FAQ
What were ManpowerGroup's (MAN) Q3 2024 revenue and earnings?
How did ManpowerGroup's (MAN) Q3 2024 results compare to Q3 2023?
What is ManpowerGroup's (MAN) earnings guidance for Q4 2024?
What strategic moves did ManpowerGroup (MAN) make in Q3 2024?
