ManpowerGroup Reports 4th Quarter and Full Year 2012 Results

         ManpowerGroup Reports 4th Quarter and Full Year 2012 Results

PR Newswire

MILWAUKEE, Jan. 30, 2013

MILWAUKEE, Jan. 30, 2013 /PRNewswire/ --ManpowerGroup (NYSE: MAN) today
reported net earnings of 68 cents per diluted share for the three months ended
December 31, 2012 compared to 78 cents per share in the prior period. The net
earnings in the quarter were $53.3 million compared to $63.6 million a year
earlier. Revenues for the fourth quarter totaled $5.2 billion, a decrease of 5
percent from the year earlier period, or a decrease of 4 percent in constant
currency.

(Logo: http://photos.prnewswire.com/prnh/20110330/CG73938LOGO-a)

Included in the current year fourth quarter results is a reorganization
charge, primarily related to office consolidations and severance costs of
$26.6 million ($18.3 million after tax or 23 cents per diluted share).
Included in the prior year fourth quarter is a reorganization charge of $20.5
million ($16.3 million after tax or 20 cents per diluted share). Excluding
these charges, net earnings per diluted share for the three months ended
December 31, 2012 declined 7 percent to 91 cents per share compared to 98
cents per share in the year earlier period. Fourth quarter results were
unfavorably impacted by 1 cent per diluted share as foreign currencies were
relatively weaker compared to the prior year.

"We finished 2012 with a solid fourth quarter performance. Our team was able
to achieve a modest revenue increase compared to the third quarter while
pursuing strong price discipline and intense expense management. Our free cash
flow was strong, aided by good collection activity. All offerings performed
well, with ManpowerGroup Solutions and Right Management leading the way with
revenue growing 7 percent in constant currency.

"We remain appropriately optimistic as we look into 2013. We are on guard for
potential disruption in all markets, particularly Europe, but at this time we
do not anticipate any dramatic negatives. Our first quarter is traditionally a
seasonally challenging period and given the tepid demand environment, we are
anticipating the first quarter of 2013 diluted earnings per share to be in the
range of 40 cents to 48 cents before reorganization charges."

Net earnings per diluted share for the year ended December 31, 2012 was $2.47
compared to $3.04 per diluted share in 2011. Net earnings were $197.6 million
compared to $251.6 million in the prior year. Revenues for the year were $20.7
billion, a decrease of 6 percent from the prior year, or 1 percent in constant
currency.

Earnings for the full year 2012 include reorganization costs and legal
settlement costs of 48 cents per diluted share. Earnings in the prior year
include reorganization costs of 20 cents per diluted share. Excluding these
charges, net earnings per diluted share for 2012 declined 9 percent to $2.95
per share compared to $3.24 the prior year. Additionally, 2012 results were
unfavorably impacted by 15 cents per diluted share due to changes in foreign
currencies compared to the prior year.

In conjunction with its fourth quarter and full year earnings release,
ManpowerGroup will broadcast its conference call live over the Internet on
January 30, 2013 at 7:30 a.m. CT (8:30 a.m. ET). Interested parties are
invited to listen to the webcast and view the presentation by logging on to
http://www.manpowergroup.com/investors.

Supplemental financial information referenced in the conference call can be
found at http://www.manpowergroup.com/investors.

About ManpowerGroup™

ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce
solutions, creates and delivers high-impact solutions that enable our clients
to achieve their business goals and enhance their competitiveness. With over
60 years of experience, our $21 billion company creates unique time to value
through a comprehensive suite of innovative solutions that help clients win in
the Human Age. These solutions cover an entire range of talent-driven needs
from recruitment and assessment, training and development, and career
management, to outsourcing and workforce consulting. ManpowerGroup maintains
the world's largest and industry-leading network of 3,500 offices in 80
countries and territories, generating a dynamic mix of an unmatched global
footprint with valuable insight and local expertise to meet the needs of its
400,000 clients per year, across all industry sectors, small and medium-sized
enterprises, local, multinational and global companies. By connecting our deep
understanding of human potential to the ambitions of clients, ManpowerGroup
helps the organizations and individuals we serve achieve more than they
imagined — because their success leads to our success. And by creating these
powerful connections, we create power that drives organizations forward,
accelerates personal success and builds more sustainable communities. We help
power the world of work. The ManpowerGroup suite of solutions is offered
through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®.
Learn more about how ManpowerGroup can help you win in the Human Age at
www.manpowergroup.com.

ManpowerGroup is the most trusted brand in the industry, and was once again
the only company in our industry to be named to the Ethisphere Institute's
2012 World's Most Ethical Companies list for our proven commitment to ethical
business practices, including an outstanding commitment to ethical leadership,
compliance practices and corporate social responsibility.

In January 2011, at the World Economic Forum Annual Meeting in Davos,
Switzerland, ManpowerGroup announced the world has entered the Human Age,
where talent has replaced capital as the key competitive differentiator. This
concept of talentism as the new capitalism continues to resonate and was
echoed as a core theme of the 2012 Annual Meeting of the World Economic Forum
in Davos. Learn more about this new age at www.manpowergroup.com/humanage

Gain access to ManpowerGroup's extensive thought leadership papers, annual
Talent Shortage surveys and the Manpower Employment Outlook Survey, one of the
most trusted indices of employment activity in the world, via the
ManpowerGroup World of Work Insight iPad application. This thought leadership
app explores the challenges faced by employers navigating the changing world
of work and provides in-depth commentary, analysis, insight and advice on
strategies for success.

Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter:
twitter.com/manpowergroupjj. Joerres is one of only 20 Fortune 500 CEOs who
leverages a Twitter account to get his message out.

Forward-Looking Statements

This news release contains statements, including earnings projections, that
are forward-looking in nature and, accordingly, are subject to risks and
uncertainties regarding the Company's expected future results. The Company's
actual results may differ materially from those described or contemplated in
the forward-looking statements. Factors that may cause the Company's actual
results to differ materially from those contained in the forward-looking
statements can be found in the Company's reports filed with the SEC, including
the information under the heading 'Risk Factors' in its Annual Report on Form
10-K for the year ended December 31, 2011, which information is incorporated
herein by reference.

ManpowerGroup
Results of Operations
(In millions, except per share data)
                           Three Months Ended December 31
                                                       % Variance
                                                       Amount      Constant
                           2012          2011          Reported    Currency
                           (Unaudited)
Revenues from services (a) $5,202.6      $5,484.0      -5.1%       -3.5%
Cost of services          4,325.9       4,548.8       -4.9%       -3.2%
 Gross profit             876.7         935.2         -6.3%       -4.9%
Selling and administrative 771.8         805.4         -4.2%       -2.8%
expenses
 Operating profit         104.9         129.8         -19.1%      -17.5%
Interest and other         10.1          10.4          -2.6%
expenses
 Earnings before income   94.8          119.4         -20.6%      -19.0%
taxes
Provision for income taxes 41.5          55.8          -25.6%
 Net earnings             $   53.3    $   63.6    -16.2%      -14.5%
Net earnings per share -   $   0.68    $   0.79    -13.9%
basic
Net earnings per share -   $   0.68    $   0.78    -12.8%      -11.5%
diluted
Weighted average shares -  78.1          80.8          -3.4%
basic
Weighted average shares -  78.6          81.4          -3.4%
diluted
(a) Revenues from services include fees received from our franchise offices
of $6.0 million and $6.4 million for the

 three months ended December 31, 2012 and 2011, respectively. These fees
are primarily based on revenues

 generated by the franchise offices, which were $257.4 million and $257.2
million for the three months ended

 December 31, 2012 and 2011, respectively.

ManpowerGroup
Operating Unit Results
(In millions)
                           Three Months Ended December 31
                                                       % Variance
                                                       Amount      Constant
                           2012          2011          Reported    Currency
                           (Unaudited)
Revenues from Services:
 Americas:
 United States (a)   $  750.7     $  765.9     -2.0%       -2.0%
 Other Americas       405.4         389.8         4.0%        4.1%
                           1,156.1       1,155.7       0.0%        0.1%
 Southern Europe:
 France               1,314.2       1,511.0       -13.0%      -9.5%
 Italy                268.5         305.3         -12.0%      -8.5%
 Other Southern       194.0         196.3         -1.2%       2.2%
Europe
                           1,776.7       2,012.6       -11.7%      -8.2%
 Northern Europe          1,487.2       1,540.9       -3.5%       -2.8%
 APME                     697.7         695.0         0.4%        1.4%
 Right Management        84.9          79.8          6.3%        6.5%
                           $5,202.6      $5,484.0      -5.1%       -3.5%
Operating Unit Profit
(Loss):
 Americas:
 United States        $   21.7    $   26.1    -16.9%      -16.9%
 Other Americas       13.9          12.1          13.9%       11.1%
                           35.6          38.2          -7.1%       -7.9%
 Southern Europe:
 France               18.0          20.5          -12.0%      -7.7%
 Italy                8.9           19.7          -54.9%      -52.0%
 Other Southern       1.4           2.9           -50.1%      -49.1%
Europe
                           28.3          43.1          -34.2%      -30.7%
 Northern Europe          34.2          51.8          -33.9%      -33.6%
 APME                     28.5          21.7          31.2%       33.0%
 Right Management        8.2           (5.6)         N/A         N/A
                           134.8         149.2
Corporate expenses         (38.3)        (30.7)
Intangible asset           (9.3)         (10.0)
amortization expense
Reclassification of French 17.7          21.3
business tax
 Operating profit       104.9         129.8         -19.1%      -17.5%
Interest and other         (10.1)        (10.4)
expenses (b)
 Earnings before income $   94.8    $  119.4
taxes
(a) In the United States, revenues from services include fees received from
our franchise offices of $3.7 million and $3.8 million for the three months
ended December 31, 2012 and 2011, respectively. These fees are primarily based
on revenues generated by the franchise offices, which were $170.9 million and
$167.5 million for the three months ended December 31, 2012 and 2011,
respectively.
(b) The components of interest and other expenses were:
                           2012          2011
 Interest expense   $   10.7    $   10.3
 Interest income    (1.9)         (2.3)
 Foreign exchange   0.3           0.8
losses
 Miscellaneous      1.0           1.6
expense, net
                           $   10.1    $   10.4

ManpowerGroup
Results of Operations
(In millions, except per share data)
                          Year Ended December 31
                                                        % Variance
                                                        Amount      Constant
                          2012           2011           Reported    Currency
                          (Unaudited)
Revenues from services    $20,678.0      $22,006.0      -6.0%       -1.4%
(a)
Cost of services          17,236.0       18,299.7       -5.8%       -1.1%
 Gross profit            3,442.0        3,706.3        -7.1%       -3.0%
Selling and               3,030.3        3,182.1        -4.8%       -0.8%
administrative expenses
 Operating profit        411.7          524.2          -21.5%      -16.5%
Interest and other        43.3           44.3           -2.3%
expenses
 Earnings before income  368.4          479.9          -23.2%      -18.2%
taxes
Provision for income      170.8          228.3          -25.2%
taxes
 Net earnings            $   197.6    $   251.6    -21.5%      -16.3%
Net earnings per share -  $   2.49    $   3.08    -19.2%
basic
Net earnings per share -  $   2.47    $   3.04    -18.8%      -14.1%
diluted
Weighted average shares - 79.5           81.6           -2.7%
basic
Weighted average shares - 80.1           82.8           -3.3%
diluted
(a) Revenues from services include fees received from our franchise offices
of $23.9 million and $25.2 million for

 the years ended December 31, 2012 and 2011, respectively. These fees are
primarily based on

 revenues generated by the franchise offices, which were $1,051.8 million
and $1,075.2 million for the years

 ended December 31, 2012 and 2011, respectively.

ManpowerGroup
Operating Unit Results
(In millions)
                           Year Ended December 31
                                                         % Variance
                                                         Amount     Constant
                           2012           2011           Reported   Currency
                           (Unaudited)
Revenues from Services:
 Americas:
 United States (a)   $ 3,010.5     $ 3,137.3     -4.0%      -4.0%
 Other Americas       1,585.4        1,512.1        4.8%       9.9%
                           4,595.9        4,649.4        -1.2%      0.5%
 Southern Europe:
 France               5,425.6        6,179.1        -12.2%     -4.6%
 Italy                1,056.8        1,255.8        -15.8%     -8.9%
 Other Southern       768.5          776.9          -1.1%      6.9%
Europe
                           7,250.9        8,211.8        -11.7%     -4.2%
 Northern Europe          5,773.9        6,159.4        -6.3%      -1.3%
 APME                     2,728.8        2,661.7        2.5%       3.1%
 Right Management        328.5          323.7          1.5%       3.4%
                           $20,678.0      $22,006.0      -6.0%      -1.4%
Operating Unit Profit
(Loss):
 Americas:
 United States        $   60.8    $   94.1    -35.4%     -35.4%
 Other Americas       50.6           47.8           5.7%       9.1%
                           111.4          141.9          -21.6%     -20.4%
 Southern Europe:
 France               56.7           85.2           -33.4%     -26.6%
 Italy                45.4           74.1           -38.7%     -33.4%
 Other Southern       10.1           10.8           -6.8%      1.0%
Europe
                           112.2          170.1          -34.0%     -27.8%
 Northern Europe          159.8          212.6          -24.8%     -21.0%
 APME                     90.7           78.8           15.2%      16.2%
 Right Management        13.4           (1.4)          N/A        N/A
                           487.5          602.0
Corporate expenses         (112.0)        (123.1)
Intangible asset           (36.7)         (38.9)
amortization expense
Reclassification of French 72.9           84.2
business tax
 Operating profit       411.7          524.2          -21.5%     -16.5%
Interest and other         (43.3)         (44.3)
expenses (b)
 Earnings before income $   368.4    $   479.9
taxes
(a) In the United States, revenues from services include fees received from
our franchise offices of $14.6 million and $13.6 million for the years ended
December 31, 2012 and 2011. These fees are primarily based on revenues
generated by the franchise offices, which were $691.7 million and $646.1
million for the years ended December 31, 2012 and 2011, respectively.
(b) The components of interest and other expenses were:
                           2012           2011
 Interest expense   $   41.8    $   42.8
 Interest income    (6.6)          (7.3)
 Foreign exchange   0.9            2.8
losses
 Miscellaneous      7.2            6.0
expenses, net
                           $   43.3    $   44.3

ManpowerGroup
Consolidated Balance Sheets
(In millions)
                                                          Dec. 31    Dec. 31
                                                          2012       2011
                                                          (Unaudited)
ASSETS
Current assets:
 Cash and cash equivalents                               $  648.1  $  580.5
 Accounts receivable, net                                4,179.0    4,181.3
 Prepaid expenses and other assets                       172.9      176.3
 Future income tax benefits                              60.6       52.4
 Total current assets                                5,060.6    4,990.5
Other assets:
 Goodwill and other intangible assets, net               1,371.9    1,339.6
 Other assets                                            395.3      395.1
 Total other assets                                  1,767.2    1,734.7
Property and equipment:
 Land, buildings, leasehold improvements and equipment   704.1      685.6
 Less: accumulated depreciation and amortization        519.3      511.1
 Net property and equipment                            184.8      174.5
 Total assets                                      $7,012.6   $6,899.7
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                        $1,466.5   $1,370.6
 Employee compensation payable                           210.7      221.9
 Accrued liabilities                                     533.8      520.8
 Accrued payroll taxes and insurance                     685.7      712.4
 Value added taxes payable                               472.5      502.3
 Short-term borrowings and current maturities of         308.0      434.2
long-term debt
 Total current liabilities                           3,677.2    3,762.2
Other liabilities:
 Long-term debt                                          462.1      266.0
 Other long-term liabilities                             372.5      388.1
 Total other liabilities                             834.6      654.1
Shareholders' equity:
 Common stock                                            1.1        1.1
 Capital in excess of par value                          2,873.2    2,839.9
 Retained earnings                                      1,101.5    971.7
 Accumulated other comprehensive income                  34.4       35.3
 Treasury stock, at cost                                 (1,509.4)  (1,364.6)
 Total shareholders' equity                          2,500.8    2,483.4
 Total liabilities and shareholders' equity        $7,012.6   $6,899.7

ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
                                                           Year Ended
                                                           December 31
                                                           2012     2011
                                                           (Unaudited)
Cash Flows from Operating Activities:
 Net earnings                                             $197.6   $251.6
 Adjustments to reconcile net earnings to net
 cash provided by operating activities:
 Depreciation and amortization                        100.5    104.4
 Deferred income taxes                                (11.6)   24.8
 Provision for doubtful accounts                      29.2     25.9
 Share-based compensation                             30.0     31.4
 Excess tax benefit on exercise of share-based awards (0.3)    (1.3)
 Changes in operating assets and liabilities, excluding
 the impact of acquisitions:
 Accounts receivable                                  48.3     (417.1)
 Other assets                                         (9.2)    (48.2)
 Other liabilities                                    (52.9)   97.7
 Cash provided by operating activities          331.6    69.2
Cash Flows from Investing Activities:
 Capital expenditures                                     (72.0)   (64.9)
 Acquisitions of businesses, net of cash acquired         (49.0)   (49.0)
 Proceeds from sales of property and equipment            3.7      4.4
 Cash used in investing activities              (117.3)  (109.5)
Cash Flows from Financing Activities:
 Net change in short-term borrowings                      (6.7)    15.6
 Proceeds from long-term debt                             751.6    0.8
 Repayments of long-term debt                             (703.2)  (1.1)
 Proceeds from share-based awards                         6.0      29.5
 Other share-based award transactions, net                (6.3)    1.3
 Repurchases of common stock                              (138.2)  (104.5)
 Dividends paid                                           (67.8)   (65.1)
 Cash used in financing activities              (164.6)  (123.5)
Effect of exchange rate changes on cash                    17.9     (28.3)
Change in cash and cash equivalents                        67.6     (192.1)
Cash and cash equivalents, beginning of period             580.5    772.6
Cash and cash equivalents, end of period                   $648.1   $580.5

SOURCE ManpowerGroup

Website: http://www.manpowergroup.com
Contact: Mike Van Handel, +1-414-906-6305, michael.vanhandel@manpowergroup.com
 
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