* 2nd-quarter adjusted earnings $1.05/share vs est $0.89
* Revenue in line with estimates at $5.04 billion
* Expects 3rd-quarter earnings of $$1.02- $1.10/share
July 19 ManpowerGroup Inc, the world's
third-largest staffing company, reported a quarterly profit that
blew past market expectations as a restructuring program began
to bear fruit, sending its shares up as much as 7 percent.
The company, which received more than half of its revenue
from Europe in the second quarter, also said it expects hiring
to pick up as European economy shows fewer signs of volatility.
"You can see growth (in Europe) but it's going to be slow
growth," Chief Executive Jeffrey Joerres said.
"But from our perspective, small growth can benefit us
disproportionately well, because companies will still hesitate
to bring on full-time staff as there's no market certainty."
The company had started closing offices as the euro-zone
debt crisis paralyzed job markets, hurting the company's revenue
and those of rivals such as Switzerland-based Adecco
and Dutch group Randstad.
"It looks like they are pulling out of the slowdown,"
Avondale Partners analyst Randle Greece said, crediting the cost
cutting that was running ahead of schedule.
ManpowerGroup, whose clients include Deutsche Bank
, Novartis and Cisco Systems cut
its general expenses by $50 million to $688 million in the
The Milwaukee, Wisconsin-based company also forecast
third-quarter earnings of $1.02-$1.10 per share, above Wall
Street's average estimate of 91 cents per share.
Net income in the second quarter ended June 30 rose to $68.2
million, or 87 cents per share, from $41.0 million, or 51 cents
per share, a year earlier.
Excluding restructuring costs, the company earned $1.05 per
share. Analysts on average expected earnings of 89 cents per
share, according to Thomson Reuters I/B/E/S.
Revenue fell 3 percent to $5.04 billion, almost in line with
Revenue from its biggest market segment - Southern Europe -
fell 4.7 percent to $1.90 billion, while revenue from Northern
Europe fell 1.2 percent to $1.4 billion.
Shares of the company were trading at $65.55 on the New York
Stock Exchange in afternoon trading.