July 20, 2012 / 12:08 PM / 6 years ago

Manpower profit slumps on Europe, stronger dollar

NEW YORK (Reuters) - Global staffing services provider ManpowerGroup (MAN.N) on Friday reported sharply lower quarterly profit that beat Wall Street expectations as Europe’s major economies weakened and a stronger dollar reduced results.

Net earnings fell 44 percent to $41 million, or 51 cents per share, from $72.7 million, or 87 cents per share, a year ago.

Excluding one-time reorganization and other charges, Manpower earned 76 cents a share, 5 cents ahead of average analyst estimates according to Thomson Reuters I/B/E/S.

“Europe, which comprises 65 percent of our business, not surprisingly experienced the most decline in the quarter,” Chief Executive Jeff Joerres said.

Sales fell 8 percent to $5.21 billion, meeting Wall Street estimates. Manpower saw double-digit sales declines in France and Italy but smaller drops in northern Europe.

    Milwaukee-based Manpower is less reliant on European markets than rival Randstad (RAND.AS), but more than Adecco ADEN.VX or any of its U.S.-listed peers, according to BMO Capital Markets.

    The stronger dollar hurt earnings by 7 cents in the quarter and will affect third-quarter earnings by 8 cents a share, Manpower said. It forecast third-quarter profit of 64 cents to 72 cents a share, while analysts were expecting 79 cents.

    Reporting By Nick Zieminski; Editing by Chizu Nomiyama

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