Milwaukee, WI, July 26, 1999 - Manpower Inc. (NYSE: MAN) announced today that its net earnings for the three months ended June 30, 1999 increased 21% to $31.8 million or 40 cents per share, compared to $26.2 million or 32 cents per share reported for the same period in 1998.
Revenues for the quarter were $2.3 billion, an increase of 9% over the $2.1 billion reported for the same quarter a year ago. Systemwide Sales for the quarter increased 8% to $2.8 billion.
Net earnings for the quarter included a one-time income tax gain of $15.7 million related to the dissolution of a non-operating subsidiary and a non-recurring charge totaling $16.4 million net of tax ($28 million before tax) related to employee severances, retirement costs and other associated realignment costs. Net earnings for the quarter before these non-recurring charges and income items would have been 41 cents per share.
Commenting on the quarterly results, Manpower's Chief Executive Officer, Jeffrey A. Joerres, said, "We are satisfied with our results in the second quarter. We were able to show a 21% increase in net earnings during a period of modest sales growth in the United States and France. While our U.S. network of offices continues to experience a tight labor market, our IT group has continued to grow revenues in the high teens compared to the prior year.
"Our European group, including France, posted a local currency increase of 37% in operating profits on an 11% increase in revenue. In U.S. dollars the gains were 33% and 7%, respectively. We have focussed on gross margin improvement in France and we continue to experience enhanced pricing. Also contributing to this performance is continued strength in the Nordics, record profits from Germany and first time quarterly profits from Italy. With six months behind us and no current signs of any economic turbulence, we continue to look forward to a successful year."
Manpower Inc. revenues for the six months ended June 30, 1999 were $4.5 billion; Systemwide Sales were $5.3 billion; Net Earnings for the six months were $52.4 million or $.66 per share, compared to $47.9 million or $.58 per share a year ago.
This press release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company's expected financial results for the remainder of 1999. The Company's actual results may differ materially from those described or contemplated. Factors which may cause the Company's actual results to differ materially from those contained in the forward-looking statements can be found in the Company's reports filed with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 1998.
Manpower Inc. provides staffing services to a wide variety of customers through 3,200 offices located in 50 countries. The Company's principal operations include temporary staffing services, contract services and training and testing of temporary and permanent workers. Manpower's Internet web site is www.manpower.com.