Manpower jumps on profits, forecast

NEW YORK (Reuters) - Employment services company Manpower Inc (MAN.N) posted much-higher-than-expected quarterly profit on Friday, reflecting strength in its international operations and the weakness of the U.S. dollar, and said second-quarter profit will be above Wall Street estimates.

The company's shares jumped about 14 percent in midday trading on the New York Stock Exchange to their best level since November.

"We believe the company is doing a solid job in what will likely continue to be a worsening environment in many of its regions," BMO Capital Markets analyst Jeffrey Silber said in a research note.

Silber added the company's favorable currency benefit was bigger than Manpower had forecast and a lower share count also helped lead to the "upside surprise."

Net earnings in the first quarter rose 27 percent to $75.5 million, or 94 cents per share, from $59.5 million, or 69 cents per share, a year earlier.

Analysts on average expected a profit of 82 cents per share, according to Reuters Estimates.

Revenue advanced 19 percent to $5.4 billion. Wall Street expected $5.26 billion.

Milwaukee-based Manpower, which generates the bulk of its sales and earnings outside the United States, said operating profit in its U.S. operations fell 37.6 percent, but were sharply higher in France, Italy and other international markets.

Investments in international markets, including Asia and the Middle East are paying off at a time when some large economies -- notably the United States -- are slowing, Chief Executive Jeff Joerres told Reuters in an interview.

"There was a lot of thinking, from the sell-side and the buy-side, that the gig is up and what we're seeing is that there are places that are slowing down, but the portfolio is kicking through," he added.

Manpower expects a second-quarter profit of $1.47 to $1.51 per share, above analysts' target of $1.41 per share.

Manpower, because of its breadth and size, often acts as a bellwether for the staffing industry. An industry stock index, the Standard & Poor's HR Employment Services index .GSPEMPL, was up 2.9 percent.

Manpower shares were up $7.99, or 13.9 percent, at $65.46 in midday trading.

(Reporting by Nick Zieminski; Editing by Mark Porter/Andre Grenon)