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Manpower Earnings More Than Double

April 19, 2004

MILWAUKEE (AP) _ Manpower Inc., the world’s second-largest job-placement firm, Monday said its earnings more than doubled in the first quarter due to the weak dollar, newly acquired Right Management Consultants and the sale of a stake in a European Internet job site.

The Milwaukee-based company reported earnings of $39.6 million, or 45 cents a share, up from $14.9 million, or 19 cents, in the first quarter of 2003.

Revenue increased 24 percent to $3.3 billion, from $2.7 billion last year.

Right Management, which specializes in hiring, retraining and organizational consulting services, added about 3 cents a share to Manpower’s earnings. It was acquired in January.

Manpower posted a profit of $10.2 million, or 12 cents a share, on the sale of the stake in the European job site.

Excluding that gain and the effects of currency exchange rates, the company earned 28 cents a share on an 11 percent gain in revenue.

Analysts surveyed by Thomson First Call had on average forecast earnings of 27 cents a share.

Most of the earnings improvement came from international operations, the company said.

However, Manpower said, its U.S. operation is starting to detect signs of job growth.

In the second quarter, Manpower expects earnings of 49 cents to 53 cents a share, including 6 cents a share in gains from the weak dollar and contributions from Right Management.

A Thomson First Call survey of analysts produced an average earnings estimate of 51 cents a share for the quarter.

Manpower stock traded up 10 cents at $47.40 Monday morning on the New York Stock Exchange.

Manpower trails only Swiss staffing agency Adecco SA in size.

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