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Business conditions in North America and Europe were challenging in the second quarter, ManpowerGroup (NYSE: MAN) reported today. The staffing giant said revenue fell 3.5% year over year in constant currency to $4.52 billion.
Still, ManpowerGroup cited solid demand in Latin America and the Asia-Pacific region.
“Employers in North America and Europe continue to remain cautious,” Chairman and CEO Jonas Prising said. “Permanent recruitment activity softened slightly further from the previous quarter, while staffing and solutions activity remained relatively stable across most of our large markets.”
The Milwaukee-based company continues to prioritize strategic initiatives and driving sales as well as balancing costs, Prising said.
CFO Jack McGinnis noted in a conference call with analysts that second-quarter revenue came in slightly above the midpoint of the company’s constant currency guidance range. However, gross margin came in below the company’s guidance range because of slightly lower-than-expected permanent recruitment activity.
In ManpowerGroup’s US business, revenue fell 1.7% year over year in the second quarter. That compares to a year-over-year decline of 8.3% in the first quarter.
Canadian staffing revenue fell 9% year over year in constant currency.
The “other Americas” segment, however, saw revenue rise 17.1% in constant currency.
Looking at France, the company’s largest single market, revenue fell 6.2% in constant currency.
Results by business line
The company’s Manpower business saw revenue fall 2% on an organic, constant currency basis, a slight improvement from the first-quarter trend.
At Experis, revenue fell 7% year over year in the second quarter on an organic, constant currency basis. The rate of decline improved from the first-quarter trend, driven by the US business.
Talent Solutions revenue was down 9% on a constant currency, organic basis. The company said the decline was driven by RPO. Talent Solutions’ MSP business and Right Management reported solid growth; Right Management growth was driven by outplacement.
ManpowerGroup – Q2 2024
| (US$ millions) | Q2 2024 | Q2 2023 | % change | % constant currency |
| Revenue from services | 4,520.70 | 4,856.10 | -6.9% | -3.5% |
| Gross profit | 785.9 | 862.3 | -8.9% | -5.7% |
| Gross margin | 17.40% | 17.80% | - | - |
| Net earnings | 60.1 | 65.2 | -7.8% | -1.8% |
Revenue by geography
| (US$ millions) | Q2 2024 | Q2 2023 | % change | % constant currency |
| United States | 697 | 709.1 | -1.7% | -1.7% |
| Other Americas | 367.4 | 389.6 | -5.7% | 17.1% |
| Total Americas | 1,064.40 | 1,098.70 | -3.1% | 5.0% |
| France | 1,184.90 | 1,278.20 | -7.3% | -6.2% |
| Italy | 434.9 | 457.8 | -5.0% | -3.9% |
| Other Southern Europe | 478.2 | 490.9 | -2.6% | 0.0% |
| Total Southern Europe | 2,098.00 | 2,226.90 | -5.8% | -4.4% |
| Northern Europe | 837.3 | 952.5 | -12.1% | -12.0% |
| Asia Pacific Middle East | 541.4 | 599.4 | -9.7% | -2.0% |
| Intercompany eliminations | -20.4 | -21.4 | - | - |
| Total | 4,520.70 | 4,856.10 | -6.9% | -3.5% |
Guidance
For the third quarter, ManpowerGroup forecasts:
- Total revenue to be down between 2% and 6% (flat to down 4% in constant currency).
- America's revenue is to be down between 2% and 6% (up 1% to 5% in constant currency).
- Southern Europe revenue to be down between 1% and 5% (flat to down 4% in constant currency).
- Northern Europe revenue to be down between 5% and 9% (down between 6% and 10% in constant currency).
- Asia Pacific Middle East revenue to be down between 3% and 7% (down 1% to up 3% in constant currency).
- Gross profit margin to be between 17.3% and 17.5%.
Share price
Shares in ManpowerGroup were up 1.13% to $75.03 as of 11:34 a.m. Eastern time today. They were 13.63% above their 52-week low.