ManpowerGroup reports increased profit on lower revenue in Q4

McGinnis named CFO

ManpowerGroup headquarters
ManpowerGroup's global headquarters in downtown Milwaukee.

Milwaukee-based global staffing and workforce solutions firm ManpowerGroup Inc. reported fourth quarter net income of $123.9 million, or $1.66 per share, up from $117.2 million, or $1.47 per share, in the fourth quarter of 2014.

ManpowerGroup headquarters
ManpowerGroup’s global headquarters in downtown Milwaukee.

Operating income was $181.1 million, down from $193.3 million in the same period a year ago.

ManpowerGroup reported $5 million in revenue, down from $5.1 million in the fourth quarter of 2014.

The company attributed its revenue decrease to a strong U.S. dollar. Its adjusted revenue was up 7 percent on a constant currency basis, and its adjusted net income would have increased 24 percent.

“This is certainly not an ideal situation in terms of overall global economic growth,” chairman and CEO Jonas Prising said in a call with analysts this morning. But he expects the company can perform well in 2016.


“We are pleased with our solid performance in the fourth quarter, with good top line and bottom line performance, capping off a very good year,” Prising said. “We made significant operational and strategic progress during the course of 2015 and are well positioned to further build on this progress as we enter the new year.

“Our workforce solutions are ideally suited to help companies adapt and prosper in a volatile and uncertain environment, and at the same time help millions of individuals find meaningful employment all over the world. That is the foundation of our confidence and passion for our business in 2016 and beyond.”

For the full year, ManpowerGroup reported net income of $419.2 million, or $5.40 per share, down from $427.6 million, or $5.30 per share, in 2014.

Full-year operating income was $688.9 million, down from $719.9 million last year.

The company’s 2015 revenue totaled $19.3 billion, down 6.9 percent from $20.8 billion in 2014.

New CFO appointed

The company also named a new chief financial officer. John “Jack” McGinnis will serve as executive vice president and CFO beginning Feb. 15.

McGinnis replaces Michael Van Handel, who told the company last week he will retire from the CFO role on the same day. Van Handel will continue as senior executive vice president at least through the end of 2016.

McGinnis, 49, previously served for the past year as global control manager at Morgan Stanley. Before that, he was in several leadership roles at HSBC, including CFO of HSBC North America Holdings Inc. Earlier in his career, McGinnis was a partner at Ernst & Young LLP.

ManpowerGroup, which extended an employment offer to McGinnis in November, will pay him a $600,000 annual salary, with a target bonus of the same amount available in his first year and an annual incentive opportunity. He will receive another $3 million in unvested and long-term benefits.

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