A $4.6 Billion Q4 for ManpowerGroup: Balancing Revenue Decline with Strategic Foresight
- Revenues of $4.6 billion (-4% as reported, -5% constant currency)
- Continuation of challenging environment in North America and Europe during the quarter, solid demand in LATAM and APME
- Gross profit margin of 17.5%. Staffing margins remained resilient; permanent recruitment trends were stable at lower levels in second half of the year
- Non-cash goodwill impairment charge of $55 million; restructuring charges of $90 million include wind down costs on Germany Proservia business
- $50 million of common stock repurchased during the quarter
, Jan. 30, 2024 ManpowerGroup
) today reported net losses of $1.73
per diluted share for the three months ended December 31, 2023
compared to net earnings of $0.95
per diluted share in the prior year period. Net losses in the quarter were $84.5 million
compared to net earnings of $48.7 million
a year earlier. Revenues for the fourth quarter were $4.6 billion
, a 4% decrease from the prior year period.
The current year quarter included restructuring costs, and certain non-cash charges including goodwill and other impairment charge, pension settlements and Argentina
related currency translation losses1
. These items reduced earnings per share by $3.18
in the current quarter. Excluding these items, earnings per share was $1.45
per diluted share in the quarter representing a decrease of 30% in constant currency.2
Financial results in the quarter were also impacted by the stronger U.S. dollar relative to foreign currencies3
compared to the prior year period. On a constant currency basis, revenues decreased 5% compared to the prior year period.
, ManpowerGroup Chairman & CEO, said, "Our fourth quarter and full year results reflect a challenging operating environment in North America
, while we continued to see solid demand across Latin America
and Asia Pacific Middle East. During 2023, we progressed our Diversification, Digitization and Innovation
agenda and took significant actions to improve our business for today's environment and into the future. We are confident in our ability to navigate this kind of environment and ensure we are well positioned for profitable growth when demand improves.
We anticipate diluted earnings per share in the first quarter will be between $0.88
, which includes an estimated unfavorable currency impact of 2 cents
and excludes unfavorable operating losses for the run-off of our Proservia business estimated at 14 cents
. Our guidance excludes restructuring costs and any Argentina
related impact of non-cash currency translation losses."
Net earnings for the year ended December 31, 2023
were $88.8 million
, or net earnings of $1.76
per diluted share compared to net earnings of $373.8 million
, or net earnings of $7.08
per diluted share in the prior year, respectively. The full year period included restructuring costs, a loss on sale of our Philippines
business, a non-cash goodwill and other impairment charge, pension settlements and an Argentina
related non-cash currency translation losses which reduced earnings per share by $4.28
. Excluding the net impact of these charges, earnings per share for the year was $6.04
per diluted share representing a decrease of 28% in constant currency.4
Revenues for the year were $18.9 billion
, representing a decrease of 5% compared to the prior year or a decrease of 4% in constant currency. Earnings per share for the year were negatively impacted by 14 cents
due to changes in foreign currencies compared to the prior year.
In conjunction with its fourth quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on January 30, 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/
(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 2023 ManpowerGroup was named one of the World's Most Ethical Companies for the 14th time – all confirming our position as the brand of choice for in-demand talent. For more information, visit www.manpowergroup.com
This press release contains statements, including statements regarding economic and geopolitical uncertainty, financial outlook, including any residual costs resulting from the wind-down of the Proservia business in Germany
, labor demand, including demand for green skills and the impact of AI on the labor market, the outlook for our business in the regions in which we operate as well as key countries within those regions, the Company's strategic initiatives and technology investments, including transformation programs, and the positioning of future growth for our brands that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company's expected future results. The Company's actual results may differ materially from those described or contemplated in the forward-looking statements due to numerous factors. These factors include those found in the Company's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022
, which information is incorporated herein by reference.
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.