October 21, 2009 / 11:44 AM / 10 years ago

UPDATE 3-Manpower shares fall on soft 4th-qtr outlook

* Q3 shr ex items $0.26 vs $0.17 expected

* Q3 revenue down 26 pct to $4.19 bln

* Sees Q4 shr $0.17 to $0.27, below Wall Street forecast

* Shares down 6.8 percent (Adds stock reaction, CEO quote)

NEW YORK, Oct 21 (Reuters) - Global employment services company Manpower Inc (MAN.N) reported a wider quarterly net loss and forecast current-quarter profit below Wall Street estimates, sending its shares down nearly 7 percent.

The third-quarter net loss widened to $50.4 million, or 64 cents per share, from $43.2 million, or 55 cents per share, a year earlier.

Excluding items, Manpower posted a profit of 26 cents per share, which beat the analysts’ average forecast by 9 cents, according to Thomson Reuters I/B/E/S.

Revenue fell 26 percent to $4.19 billion, compared with Wall Street forecasts for $3.95 billion. It was up sequentially from the second quarter’s $3.8 billion.

Manpower said, given current trends, it did not need to take further cost cuts or reduce its branches, but noted that the sequential uptick in revenue was muted compared with previous recoveries.

“We continued to see clear stabilization and in some instances an improvement in our year-over-year revenue growth rates,” Chief Executive Officer Jeff Joerres said on a conference call with analysts.

Manpower said the current economy made it difficult to forecast results, but it expected to earn between 17 cents and 27 cents per share in the fourth quarter. Analysts were looking for 28 cents.

“We expect a slow employment rebound and several more tough quarters,” Barclays Capital analyst Gary Bisbee said in a note to clients.

Manpower shares were down 6.8 percent at $56.64 in early trading on the New York Stock Exchange. (Reporting by Nick Zieminski, editing by Gerald E. McCormick and Maureen Bavdek)

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