Reorganization charges clip ManpowerGroup

Milwaukee-based ManpowerGroup reported fourth quarter net earnings of $53.3 million, or 68 cents per share, down from $63.6 million, or 78 cents per share, in the same period a year ago.

The company’s quarter revenues fell to $5.2 billion from $5.5 billion a year earlier.

Included in the current year fourth quarter results was a reorganization charge, primarily related to office consolidations and severance costs of $26.6 million ($18.3 million after tax or 23 cents per diluted share).

“We finished 2012 with a solid fourth quarter performance. Our team was able to achieve a modest revenue increase compared to the third quarter while pursuing strong price discipline and intense expense management. Our free cash flow was strong, aided by good collection activity. All offerings performed well, with ManpowerGroup Solutions and Right Management leading the way with revenue growing 7 percent in constant currency,” said Manpower chief executive officer Jeff Joerres. “We remain appropriately optimistic as we look into 2013. We are on guard for potential disruption in all markets, particularly Europe, but at this time we do not anticipate any dramatic negatives. Our first quarter is traditionally a seasonally challenging period and given the tepid demand environment, we are anticipating the first quarter of 2013 diluted earnings per share to be in the range of 40 cents to 48 cents before reorganization charges.”

Manpower’s net earnings for the full year were $197.6 million compared with $251.6 million in the prior year. Revenues for the year were $20.7 billion, a decrease of 6 percent from the prior year, or 1 percent in constant currency.

Earnings for the full year 2012 include reorganization costs and legal settlement costs of 48 cents per diluted share.

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