Manpower Inc. (MAN, Financial) filed Quarterly Report for the period ended 2009-03-31.
Manpower Inc. is a leading non-governmental employment services organization. The company's largest operations based on revenues are located in the United States France and the United Kingdom. The company provides a variety of staffing and workforce management services and solutions including temporary staffing services contract services and training and testing of temporary and permanent workers. The company provides employment services to a wide variety of customers. Manpower Inc. has a market cap of $3.53 billion; its shares were traded at around $45.06 with a P/E ratio of 11.5 and P/S ratio of 0.2. The dividend yield of Manpower Inc. stocks is 1.6%. Manpower Inc. had an annual average earning growth of 10.3% over the past 10 years. GuruFocus rated Manpower Inc. the business predictability rank of 2-star.
In the Americas, Revenues decreased 21.2% (-14.9% in constant currency) for the first quarter of 2009 compared to 2008. In the United States (which represents 63.0% of the America s revenues), Revenues declined 20.7%, or 28.1% excluding acquisitions. Revenues in Other Americas declined 21.9%, or 5.2% in constant currency. These revenue declines are primarily due to a decrease in our staffing volumes, both in our core temporary recruitment business, particularly in the light industrial and the professional sectors. Permanent Recruitment Revenues also declined 40.1% in the Americas with a decline of 40.4% in the United States. These overall revenue declines show a continuing softening of the market from the declines experienced in the fourth quarter of 2008 where Revenues for the Americas decreased 2.9% in constant currency. The United States market has seen the same consistent year-over-year declines in business volumes during the end of the first quarter and the early part of the second quarter.
Operating Unit Profit (“OUP”) Margin in the Americas was -1.6% and 2.0% for the first quarter of 2009 and 2008, respectively. This decline is primarily due to the decline in the United States, where OUP Margin was -3.9% in the first quarter of 2009 compared to 1.5% in 2008. Other Americas OUP Margin was 2.2% in the first quarter of 2009 compared to 2.9% in the first quarter of 2008. The decreases are due to the deleveraging effect of the revenue decline as revenues have declined more than expenses. Acquisitions had a minimal impact on OUP Margin for the first quarter of 2009.
In EMEA, which includes operations throughout Europe (excluding France), the Middle East and Africa, revenues decreased 34.2% (-18.3% in constant currency) in the first quarter of 2009 compared to the first quarter of 2008. Revenues in Other EMEA decreased 31.9%, or 14.3% in constant currency, while Italy had revenue declines of 45.1%, or 36.9% in constant currency. Excluding the impact of the acquisition of Vitae in the second quarter of 2008, revenues declined 19.8% for EMEA, and 16.2% for Other EMEA, in constant currency. Organic constant currency revenue declines were experienced in all major markets other than Elan, which reported 1% revenue growth in the quarter. Permanent recruitment revenues decreased 38.0% in constant currency during the quarter, a further decline from the 6.7% constant currency decline experienced in the fourth quarter of 2008, due to continuing declining trends in most of our markets.
OUP Margin for EMEA was 0.1% and 3.4% for the first quarter of 2009 and 2008, respectively. The decline was seen across the region, as OUP Margin for Other EMEA was 0.1% in 2009 compared to 2.6% in 2008, and was 0.6% compared to 7.2% for Italy. The declines in OUP Margin are due to expense deleveraging as revenues declined more than expenses. The acquisition of Vitae had a 40 basis point (+0.40%) and a 50 basis point (+0.50%) impact, respectively, on EMEA and Other EMEA OUP.
Revenues for Asia Pacific decreased 8.3%, or 7.0% in constant currency, during the first quarter of 2009 compared to 2008, a decline from the 3.8% growth, 1.4% in constant currency, experienced in the fourth quarter of 2008. Revenue decreases for the first quarter were experienced in most major markets including Japan and Australia. In Japan, where revenue declined 4.1% in constant currency, we have been able to maintain our revenue, and gain market share, by helping our key clients manage their flexibility. In Australia, revenue has declined 17.7% mainly due to the loss of our Australian Defense Force customer at the end of January 2009. Permanent recruitment revenues have decreased 49.7% in Asia Pacific, a decrease of 39.2% excluding the loss of this customer in Australia.
Read the The complete ReportMAN is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Tom Gayner of Markel Gayner Asset Management Corp, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Manpower Inc. is a leading non-governmental employment services organization. The company's largest operations based on revenues are located in the United States France and the United Kingdom. The company provides a variety of staffing and workforce management services and solutions including temporary staffing services contract services and training and testing of temporary and permanent workers. The company provides employment services to a wide variety of customers. Manpower Inc. has a market cap of $3.53 billion; its shares were traded at around $45.06 with a P/E ratio of 11.5 and P/S ratio of 0.2. The dividend yield of Manpower Inc. stocks is 1.6%. Manpower Inc. had an annual average earning growth of 10.3% over the past 10 years. GuruFocus rated Manpower Inc. the business predictability rank of 2-star.
Highlight of Business Operations:
We recorded an income tax benefit, at an effective rate of 136.9% for the three months ended March 31, 2009, as compared to an income tax expense, at an effective rate of 37.4% for the three months ended March 31, 2008. The 2009 rate is higher due to the impact of a change in the overall mix of earnings, primarily a decrease to non-U.S. income, and valuation allowances related to losses in certain non-U.S. entities, offset by the favorable impact of a valuation allowance reversal related to a European entity for prior net operating losses that will now be utilized. Excluding the reversal of the valuation allowance, which was a discrete item in the quarter, our effective tax rate for the three months ended March 31, 2009 was 44.4%. This 44.4% rate is different than the U.S. Federal statutory rate of 35% due primarily to the impact of the mix of U.S. and non-U.S. earnings, valuation allowances and other permanent items. This 44.4% rate is higher than the annual effective tax rate of 36.6% for 2008 due primarily to the impact of the differences in the mix of U.S. and non-U.S. earnings and the relative amounts of valuation allowance recorded during each period. There were no discrete items for the first quarter of 2008.In the Americas, Revenues decreased 21.2% (-14.9% in constant currency) for the first quarter of 2009 compared to 2008. In the United States (which represents 63.0% of the America s revenues), Revenues declined 20.7%, or 28.1% excluding acquisitions. Revenues in Other Americas declined 21.9%, or 5.2% in constant currency. These revenue declines are primarily due to a decrease in our staffing volumes, both in our core temporary recruitment business, particularly in the light industrial and the professional sectors. Permanent Recruitment Revenues also declined 40.1% in the Americas with a decline of 40.4% in the United States. These overall revenue declines show a continuing softening of the market from the declines experienced in the fourth quarter of 2008 where Revenues for the Americas decreased 2.9% in constant currency. The United States market has seen the same consistent year-over-year declines in business volumes during the end of the first quarter and the early part of the second quarter.
Operating Unit Profit (“OUP”) Margin in the Americas was -1.6% and 2.0% for the first quarter of 2009 and 2008, respectively. This decline is primarily due to the decline in the United States, where OUP Margin was -3.9% in the first quarter of 2009 compared to 1.5% in 2008. Other Americas OUP Margin was 2.2% in the first quarter of 2009 compared to 2.9% in the first quarter of 2008. The decreases are due to the deleveraging effect of the revenue decline as revenues have declined more than expenses. Acquisitions had a minimal impact on OUP Margin for the first quarter of 2009.
In EMEA, which includes operations throughout Europe (excluding France), the Middle East and Africa, revenues decreased 34.2% (-18.3% in constant currency) in the first quarter of 2009 compared to the first quarter of 2008. Revenues in Other EMEA decreased 31.9%, or 14.3% in constant currency, while Italy had revenue declines of 45.1%, or 36.9% in constant currency. Excluding the impact of the acquisition of Vitae in the second quarter of 2008, revenues declined 19.8% for EMEA, and 16.2% for Other EMEA, in constant currency. Organic constant currency revenue declines were experienced in all major markets other than Elan, which reported 1% revenue growth in the quarter. Permanent recruitment revenues decreased 38.0% in constant currency during the quarter, a further decline from the 6.7% constant currency decline experienced in the fourth quarter of 2008, due to continuing declining trends in most of our markets.
OUP Margin for EMEA was 0.1% and 3.4% for the first quarter of 2009 and 2008, respectively. The decline was seen across the region, as OUP Margin for Other EMEA was 0.1% in 2009 compared to 2.6% in 2008, and was 0.6% compared to 7.2% for Italy. The declines in OUP Margin are due to expense deleveraging as revenues declined more than expenses. The acquisition of Vitae had a 40 basis point (+0.40%) and a 50 basis point (+0.50%) impact, respectively, on EMEA and Other EMEA OUP.
Revenues for Asia Pacific decreased 8.3%, or 7.0% in constant currency, during the first quarter of 2009 compared to 2008, a decline from the 3.8% growth, 1.4% in constant currency, experienced in the fourth quarter of 2008. Revenue decreases for the first quarter were experienced in most major markets including Japan and Australia. In Japan, where revenue declined 4.1% in constant currency, we have been able to maintain our revenue, and gain market share, by helping our key clients manage their flexibility. In Australia, revenue has declined 17.7% mainly due to the loss of our Australian Defense Force customer at the end of January 2009. Permanent recruitment revenues have decreased 49.7% in Asia Pacific, a decrease of 39.2% excluding the loss of this customer in Australia.
Read the The complete ReportMAN is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Tom Gayner of Markel Gayner Asset Management Corp, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
