Strong performance across all major regions, along with
effective cost management have enabled
) to come up with better-than-expected fourth-quarter 2013
results. The company's adjusted quarterly earnings per share
(EPS) were $1.48, which handily beat the Zacks Consensus Estimate
of $1.26 and rose 63.0% year over year.
However, including one-time items, EPS came in at $1.25, up 84.0%
from the prior-year quarter. Notably, Manpower stated that its
quarterly earnings were positively impacted by foreign currency
For 2013, adjusted earnings per share were $4.45, which
surpassed the Zacks Consensus Estimate of $4.22 and increased
50.8% year over year. Including one-time items, EPS came in at
$3.62, up 46.6% year over year.
Revenues & Margins
Total revenue rose 1.0% (0.7% in constant currency) year over
year to $5,252.1 million, based on robust performances across all
geographies. Moreover, reported revenues came ahead of the Zacks
Consensus Estimate of $5,212 million.
For full-year 2013, revenues fell 2.1% (2.1% in constant
currency) year over year to $20,250.5 million. However, reported
revenues surpassed the Zacks Consensus Estimate of $20,210
Gross profit increased 1.1% to $886.6 million, due to marginal
rise in cost of services, partly offset by higher revenues. Gross
margin remained almost unchanged at 16.9%.,
Manpower posted operating profit of $167.0 million, up 59.1% from
the prior-year period. Excluding restructuring charges, operating
profit came in at $194 million that increased 46% year over year,
while operating margin expanded 120 basis points to 3.7%.
Selling and administrative expenses fell 6.8% (6.8% on constant
currency) to $719.6 million.
By geographic segments, revenues from the
were flat year over year at $750.6 million. The segment's
adjusted operating profit increased 26.8% to $27.5 million from
the prior-year quarter.
, revenues decreased 4.5% (up 2.5% in constant currency) to
$387.1 million, while the segment's operating profit decreased
13.8% (down 8.8% in constant currency) to $11.9 million.
, revenues rose 6.4% year over year (up 1.4% in constant
currency) to $1,398.4 million, while the segment's operating
profit increased 95.5% (up 86.4% in constant currency) to $69.9
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, revenues increased 4.9% year over year (flat in constant
currency) to $281.6 million. The segment's operating profit rose
88.3% (up 79.3% in constant currency) to $16.7 million.
Other Southern Europe
, revenues increased 23.9% (up 17.3% in constant currency) to
$240.2 million from the year-ago quarter. The operating profit
came in at $4.4 million, up substantially from $1.4 million in
the year-ago quarter.
, revenues rose 2.3% (up 0.8% in constant currency) to $1,521.6
million while operating profit increased 33.2% (up 32.0% in
constant currency) to $45.6 million, both on a year-over-year
APME (Asia Pacific Middle East)
, revenues came in at $590.5 million, down 15.4% (down 4.9% in
constant currency) year over year. The segment's operating profit
came in at $16.6 million, down 42.1% (down 34.6% in constant
currency) from the prior-year quarter.
decreased 3.3% (down 2.3% in constant currency) year over year to
$82.1 million. The company posted operating income of $6.5
million, down 20.7% (down 20.5% in constant currency) from the
Other Financial Details
Manpower ended the quarter with cash and cash equivalents of
$737.6 million, total debt of $517.9 million, which reflected a
debt-to-capitalization ratio of 15.1%, and shareholders' equity
of $2,914.2 million. It also has a $600 million revolving credit
Moreover, Manpower incurred a capital expenditure of $44.7
million during the year ended Dec 31, 2013.
Manpower now expects first-quarter 2014 earnings per share in the
range of 62-70 cents. The Zacks Consensus Estimate for
first-quarter 2014 stands at 70 cents. Management anticipates
first-quarter total revenue to range from flat to 2% growth.
Gross margin is expected to be in the range of 16.4%-16.6%.
Further, operating profit margin is anticipated to be 2.1% to
2.3%. Tax rate is expected to be around 44%.
With a well-established network in about 79 countries, Manpower
currently provides services to about 400,000 clients. We believe
that the company's brand value, broad range of services and a
strong global footprint provide it a competitive edge over peers
Robert Half International Inc.
Currently, Manpower carries a Zacks Rank #3 (Hold).