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ManpowerGroup Reports 1st Quarter 2013 Results

                ManpowerGroup Reports 1st Quarter 2013 Results

PR Newswire

MILWAUKEE, April 19, 2013

MILWAUKEE, April 19, 2013 /PRNewswire/ -- ManpowerGroup (NYSE: MAN) today
reported that net earnings for the three months ended March 31, 2013 were
$23.9 million, or 31 cents per diluted share, compared to net earnings of
$40.2 million, or 50 cents per diluted share, a year earlier. Revenues for the
first quarter were $4.8 billion, a decrease of 6% from the prior year period.

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

Included in the first quarter results is a restructuring charge, primarily
related to office consolidations and severance costs of $34.8 million ($25.3
million after tax or 32 cents per diluted share). Net earnings in the first
quarter were negatively impacted by 1 cent per diluted share, as foreign
currencies were slightly weaker compared to the prior year period.

Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, "The first quarter
performance was largely attributed to slightly stronger than anticipated
revenues and tax credits. Additionally, our recalibration of our cost base is
advancing ahead of schedule. Those efforts, which are focused on simplifying
our business, were initially rolled out in the fourth quarter of 2012 and
continued into the first quarter, resulting in the restructuring charge in the
quarter. Our team has done an outstanding job dealing with the high levels of
uncertainty in Europe and has continued to address client and prospect needs
with our unique suite of solutions.

"We anticipate second quarter earnings per share will range between 84 cents
to 92 cents before restructuring charges. We do not expect changes in currency
rates to have a significant impact in the quarter based on current exchange
rates."

In conjunction with its first quarter earnings release, ManpowerGroup will
broadcast its conference call live over the Internet on April 19, 2013 at 7:30
a.m. CDT (8:30 a.m. EDT). 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) is the world leader in innovative workforce
solutions that ensure the talent sustainability of the world's workforce for
the good of companies, communities, countries, and individuals themselves.
Specializing in solutions that help organizations achieve business agility and
workforce flexibility, ManpowerGroup leverages its 65 years of world of work
expertise to create the work models, design the people practices and access
the talent sources its clients need for the future. From staffing,
recruitment, workforce consulting, outsourcing and career management to
assessment, training and development, ManpowerGroup delivers the talent to
drive the innovation and productivity of organizations in a world where
talentism is the dominant economic system. Every day, ManpowerGroup connects
more than 630,000 people to work and builds their experience and employability
through its relationships with 400,000 clients across 80 countries and
territories. ManpowerGroup's suite of solutions is offered through
ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®.
ManpowerGroup was named one of the World's Most Ethical Companies for the
third consecutive year in 2013, confirming our position as the most trusted
brand in the industry. See how ManpowerGroup makes powering the world of work
humanly possible at www.manpowergroup.com. Follow ManpowerGroup Chairman and
CEO Jeff Joerres on Twitter: Twitter.com/manpowergroupjj

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, 2012, which information is incorporated
herein by reference.

ManpowerGroup
Results of Operations
(In millions, except per share data)
                                    Three Months Ended March 31
                                                          % Variance
                                                          Amount   Constant
                                    2013       2012       Reported Currency
                                    (Unaudited)
Revenues from services (a)          $4,768.9   $5,096.4   -6.4%    -5.8%
Cost of services                   3,978.8    4,249.0    -6.4%    -5.7%
 Gross profit                      790.1      847.4      -6.8%    -6.2%
Selling and administrative expenses 735.7      753.6      -2.4%    -1.9%
 Operating profit                  54.4       93.8       -42.0%   -40.5%
Interest and other expenses         11.5       11.8       -2.3%
 Earnings before income taxes      42.9       82.0       -47.7%   -46.0%
Provision for income taxes          19.0       41.8       -54.5%
 Net earnings                      $   23.9 $   40.2 -40.6%   -38.7%
Net earnings per share - basic      $   0.31 $   0.50 -38.0%
Net earnings per share - diluted    $   0.31 $   0.50 -38.0%   -36.0%
Weighted average shares - basic     77.1       80.2       -3.9%
Weighted average shares - diluted  78.2       80.9       -3.3%

     Revenues from services include fees received from our franchise offices
     of $5.3 million and $5.4 million for the three months ended March 31,
(a) 2013 and 2012, respectively. These fees are primarily based on revenues
     generated by the franchise offices, which were $234.7 million and $253.9
     million for the three months ended March 31, 2013 and 2012, respectively.



ManpowerGroup
Operating Unit Results
(In millions)
                                  Three Months Ended March 31
                                                         % Variance
                                                         Amount     Constant
                                  2013        2012       Reported   Currency
                                  (Unaudited)
Revenues from Services:
 Americas:
 United States (a)          $  706.1   $  735.8  -4.0%      -4.0%
 Other Americas              386.9       402.5      -3.9%      -1.4%
                                  1,093.0     1,138.3    -4.0%      -3.1%
 Southern Europe:
 France                      1,145.2     1,291.8    -11.3%     -11.8%
 Italy                       257.9       267.5      -3.6%      -4.1%
 Other Southern Europe       193.4       195.2      -0.9%      -1.9%
                                  1,596.5     1,754.5    -9.0%      -9.6%
 Northern Europe                 1,370.3     1,444.0    -5.1%      -5.6%
 APME                            632.5       680.0      -7.0%      -1.4%
 Right Management               76.6        79.6       -3.8%      -2.5%
                                  $4,768.9    $5,096.4   -6.4%      -5.8%
Operating Unit Profit:
 Americas:
 United States               $   7.4  $   6.9 7.9%       7.9%
 Other Americas              8.7         15.3       -43.1%     -43.6%
                                  16.1        22.2       -27.4%     -27.7%
 Southern Europe:
 France                      14.3        5.5        161.9%     165.4%
 Italy                       11.7        14.5       -19.5%     -19.9%
 Other Southern Europe       2.3         3.5        -33.8%     -35.4%
                                  28.3        23.5       20.7%      21.1%
 Northern Europe                 10.6        43.9       -75.8%     -75.6%
 APME                            14.8        19.6       -25.2%     -19.4%
 Right Management               2.0         2.5        -18.4%     -7.5%
                                  71.8        111.7
Corporate expenses                (24.4)      (26.3)
Intangible asset amortization     (8.4)       (9.0)
expense
Reclassification of French        15.4        17.4
business tax
 Operating profit              54.4        93.8       -42.0%     -40.5%
Interest and other expenses (b)   (11.5)      (11.8)
 Earnings before income taxes  $   42.9  $   82.0
          In the United States, revenues from services include fees received
          from our franchise offices of $3.2 million for both the three months
(a)      ended March 31, 2013 and 2012. These fees are primarily based on
          revenues generated by the franchise offices, which were $155.1
          million and $164.4 million for the three months ended March 31, 2013
          and 2012, respectively.
(b)                      The components of interest and other expenses were:
                                  2013        2012
  Interest expense  $   10.7  $   10.6
  Interest income   (0.9)       (1.8)
  Foreign exchange  0.4         (0.2)
loss (gain)
  Miscellaneous     1.3         3.2
expense, net
                                  $   11.5  $   11.8



ManpowerGroup
Consolidated Balance Sheets
(In millions)
                                                          Mar. 31    Dec. 31
                                                          2013       2012
                                                          (Unaudited)
ASSETS
Current assets:
 Cash and cash equivalents                               $  583.4  $  648.1
 Accounts receivable, net                                4,042.0    4,179.0
 Prepaid expenses and other assets                       180.4      172.9
 Future income tax benefits                              80.0       60.6
 Total current assets                                4,885.8    5,060.6
Other assets:
 Goodwill and other intangible assets, net               1,352.8    1,371.9
 Other assets                                            386.9      395.3
 Total other assets                                  1,739.7    1,767.2
Property and equipment:
 Land, buildings, leasehold improvements and equipment   690.9      704.1
 Less: accumulated depreciation and amortization        513.1      519.3
 Net property and equipment                            177.8      184.8
 Total assets                                      $6,803.3   $7,012.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                        $1,470.0   $1,466.5
 Employee compensation payable                           174.2      210.7
 Accrued liabilities                                     493.9      533.8
 Accrued payroll taxes and insurance                     597.3      685.7
 Value added taxes payable                               437.5      472.5
 Short-term borrowings and current maturities of         302.2      308.0
long-term debt
 Total current liabilities                           3,475.1    3,677.2
Other liabilities:
 Long-term debt                                          448.9      462.1
 Other long-term liabilities                             378.2      372.5
 Total other liabilities                             827.1      834.6
Shareholders' equity:
 Common stock                                            1.1        1.1
 Capital in excess of par value                          2,890.1    2,873.2
 Retained earnings                                      1,125.4    1,101.5
 Accumulated other comprehensive (loss) income           (6.9)      34.4
 Treasury stock, at cost                                 (1,508.6)  (1,509.4)
 Total shareholders' equity                          2,501.1    2,500.8
 Total liabilities and shareholders' equity        $6,803.3   $7,012.6

ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
                                                           Three Months Ended
                                                           March 31
                                                           2013       2012
                                                           (Unaudited)
Cash Flows from Operating Activities:
 Net earnings                                             $ 23.9    $ 40.2
 Adjustments to reconcile net earnings to net
 cash used in operating activities:
 Depreciation and amortization                        24.2       24.3
 Deferred income taxes                                2.7        (0.8)
 Provision for doubtful accounts                      5.9        5.0
 Share-based compensation                             6.5        6.9
 Excess tax benefit on exercise of share-based awards (0.3)      -
 Changes in operating assets and liabilities, excluding
 the impact of acquisitions:
 Accounts receivable                                  20.2       34.4
 Other assets                                         (17.1)     (16.7)
 Other liabilities                                    (128.3)    (114.0)
 Cash used in operating activities              (62.3)     (20.7)
Cash Flows from Investing Activities:
 Capital expenditures                                     (12.8)     (19.7)
 Acquisitions of businesses, net of cash acquired         -          (1.5)
 Proceeds from sales of property and equipment            0.6        0.1
 Cash used in investing activities              (12.2)     (21.1)
Cash Flows from Financing Activities:
 Net change in short-term borrowings                      2.2        9.5
 Proceeds from long-term debt                             -          0.1
 Repayments of long-term debt                             (0.3)      (8.4)
 Proceeds from share-based awards                         10.2       3.5
 Other share-based award transactions, net                1.0        (4.5)
 Cash provided by financing activities          13.1       0.2
Effect of exchange rate changes on cash                    (3.3)      14.6
Change in cash and cash equivalents                        (64.7)     (27.0)
Cash and cash equivalents, beginning of period             648.1      580.5
Cash and cash equivalents, end of period                   $583.4     $553.5

SOURCE ManpowerGroup

Website: http://www.manpowergroup.com
Contact: Mike Van Handel, +1.414.906.6305, michael.vanhandel@manpowergroup.com
 
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