12% revenue increase in the quarter (11% increase on a constant currency basis)
– Gross profit margin of 16.6% reflects strong permanent recruitment activity and improved business mix
– Experis reported double digit revenue growth and surpassed pre-pandemic levels
– Manpower gross profit margin increased on business mix improvement and permanent recruitment, offsetting revenue sluggishness from supply chain disruptions and the Delta variant
– Talent Solutions experienced double digit revenue growth, exceeding pre-pandemic levels, led by strong growth in RPO and on-going strength in MSP
– Successfully closed ettain group acquisition on October 1, 2021
MILWAUKEE, Oct. 19, 2021 /PRNewswire/ — ManpowerGroup (NYSE: MAN) today reported net earnings of $1.77 per diluted share for the three months ended September 30, 2021 compared to $0.18 per diluted share in the prior year period. Net earnings in the quarter were $97.7 million compared to $10.3 million a year earlier. Revenues for the third quarter were $5.1 billion, a 12% increase from the prior year period.
The current year quarter included restructuring costs for our Mexico business and ettain group acquisition costs. The restructuring and acquisition costs reduced earnings per share by $0.16 in the current quarter. Excluding the restructuring and acquisition costs, earnings per share was $1.93 per diluted share in the quarter. The prior year period included restructuring costs and other special items which decreased earnings per share by $1.02.
Financial results in the quarter were also impacted by the slightly weaker U.S. dollar relative to foreign currencies compared to the prior year period, resulting in a 1 cent positive impact to earnings per share in the quarter compared to the prior year. On a constant currency basis, revenues increased 11% compared to the prior year period. Excluding the impact of restructuring costs and other special items in the current and prior year periods, on a constant currency basis, net earnings per diluted share increased 60% during the quarter.
Jonas Prising, ManpowerGroup Chairman & CEO, said, “Our third quarter results reflect a continued global economic recovery, tempered by supply chain constraints and the ongoing impact of the Delta variant in various key markets. Global demand remained strong as our clients continue to look for skilled talent in a tight labor market and leverage our capabilities and workforce solutions expertise that help them achieve their desired business outcomes.
We also accelerated our business mix diversification with the recent completion of our acquisition of ettain group. This is a core part of our strategy to advance our global expansion of our Experis IT resourcing and services business and we are delighted to formally welcome the ettain team into our Experis business and ManpowerGroup family.
Including a full quarter impact of the ettain group acquisition, we anticipate diluted earnings per share in the fourth quarter will be between $1.99 and $2.07, which includes an estimated unfavorable currency impact of 4 cents. Our guidance also includes an estimated impact from the ettain group acquisition of 13 cents and excludes acquisition transaction and integration costs.”
Net earnings for the nine months ended September 30, 2021 were $271.3 million, or net earnings of $4.90 per diluted share compared to net losses of $52.4 million, or net losses of $0.90 per diluted share in the prior year. The prior year to date period included special items and restructuring costs which reduced earnings per share by $3.09. Revenues for the nine-month period were $15.3 billion, an increase of 19% from the prior year or an increase of 13% in constant currency. Earnings per share for the nine-month period were positively impacted by 21 cents due to changes in foreign currencies compared to the prior year.
In conjunction with its third quarter earnings release, ManpowerGroup will broadcast its conference call live over the Internet on October 19, 2021 at 7:30 a.m. central time (8:30 a.m. eastern time). Prepared remarks for the conference call are included within the Investor Relations section of our website at manpowergroup.com. Interested parties are invited to listen to the webcast and view the presentation by logging on to http://investor.manpowergroup.com/ in the section titled “Investor Relations.”
Supplemental financial information referenced in the conference call can be found at http://investor.manpowergroup.com/.
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis and Talent Solutions – creates substantially more value for candidates and clients across more than 75 countries and territories and has done so for over 70 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality and Disability and in 2021 ManpowerGroup was named one of the World’s Most Ethical Companies for the 12th year – all confirming our position as the brand of choice for in-demand talent.