ManpowerGroup posts 9% profit increase

Revenue up 3 percent despite market uncertainty

ManpowerGroup headquarters
ManpowerGroup's global headquarters in downtown Milwaukee.

Milwaukee-based ManpowerGroup Inc. today reported higher profits and revenue in the second quarter, despite uncertain market conditions.

ManpowerGroup headquarters
ManpowerGroup’s global headquarters in downtown Milwaukee.

The global staffing company reported net income of $115.4 million, or $1.60 per diluted share, up 9.1 percent from $105.7 million, or $1.33 per share in the second quarter of 2015.

Revenue was $5 billion in the second quarter, up 3.3 percent from $3.9 billion in the same period last year. Cost of services increased 3.2 percent year-over-year, to $4.2 billion. The Americas segment saw revenue decrease by 4.4 percent, while Europe was up 3.3 percent from the second quarter of 2015.

Operating profit was $196 million, up from $178.7 million in the second quarter of 2015.

The strong U.S. dollar did weigh on ManpowerGroup’s results, detracting by 2 cents per share, the company said. Uncertain market conditions have been a headwind, but the company pointed to its focus on price discipline and expense management, along with productivity improvements, as factors in its growth.

ManpowerGroup has more than 400,000 clients in 80 countries and territories. It had $5.1 billion in total assets at the end of the second quarter. ManpowerGroup has 27,000 employees at 2,900 offices worldwide. There are about 900 employees at the Milwaukee headquarters.

“We are pleased with our second quarter results, contributing to a good first half of 2016,” said Jonas Prising, chairman and chief executive officer of ManpowerGroup. “We were able to deliver solid results despite a softening and more uncertain global economic growth environment.

“Many organizations are looking for a trusted partner such as ManpowerGroup to help them adjust to the new normal of certain uncertainty. Our global presence and broad range of services and solutions makes us very well positioned to provide workforce solutions to our clients throughout the world.”

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