MILWAUKEE, Oct. 17 /PRNewswire-FirstCall/ — Manpower Inc. (NYSE:MAN) today reported that earnings per diluted share for the three months ended September 30, 2006 increased 33 percent to $1.16 from 87 cents in the prior year period. Net income in the quarter increased to $100.6 million from $76.3 million a year earlier. Revenues for the third quarter totaled $4.6 billion, an increase of 12 percent from the year-earlier period.
Results for the third quarter were positively affected by relatively stronger foreign currencies compared to the prior year period. Foreign currency exchange rates had a positive impact of 4 cents for the quarter. On a constant currency basis, earnings per diluted share increased 29 percent on a 9 percent improvement in revenues.
Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, “The Manpower team is hitting full stride when it comes to executing. Our European operations minus France improved operating unit profit in U.S. dollars by 54 percent; the U.S. improved operating unit profit by 27 percent, while France improved in U.S. dollars by 22 percent. We are leveraging our growth which is evident by our revenue growth in U.S. dollars of 12 percent, resulting in net income growth in U.S. dollars of 32 percent.
“Revenue continues to be stable throughout many of the major geographies. Our European operations, minus France, led the way with a revenue increase in constant currency of 14% over third quarter of 2005. Fast growing countries include the Netherlands, Nordics, Italy, China, India and all of Eastern Europe.
“We are anticipating the fourth quarter of 2006 diluted earnings per share to be in the range of $1.14 to $1.18, which includes an estimated positive currency impact of 4 cents,” Joerres stated.
Earnings per diluted share for the nine months ended September 30, 2006 were $2.65 compared to $1.88 per diluted share in 2005. Net income was $233.6 million compared to $171.0 million the prior year. Revenues for the nine- month period were $13.0 billion, an increase of 9 percent from the prior year. Foreign currency exchange rates had a negative impact of 2 cents for the nine- month period.
Included in the 2006 nine-month period was a 27 cents per diluted share gain on the sale of a payroll processing business in Sweden, and a 16 cents per diluted share charge related to reorganization and a global cost reduction initiative.
In conjunction with its third quarter earnings release, Manpower will broadcast its conference call live over the Internet on October 17, 2006 at 7:30 a.m. CDT (8:30 a.m. EDT). Interested parties are invited to listen to the webcast by logging on to http://investor.manpower.com/ .
Supplemental financial information referenced in the conference call can be found at http://investor.manpower.com/ .
About Manpower Inc.
Manpower Inc. (NYSE:MAN) is a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. The $16 billion company offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower’s worldwide network of 4,400 offices in 72 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world’s largest multinational corporations. The focus of Manpower’s work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. Manpower Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. More information on Manpower Inc. is available at http://www.manpower.com/ .
