ManpowerGroup (NYSE: MAN) reported revenue fell 30.4% in the second quarter with Covid-19 significantly impacting business. The decline was 28.0% in constant currency, but the company noted double-digit declines in all its geographical segments.
The hardest hit was France, where revenue fell 47.5% in constant currency.
In the US, ManpowerGroup revenue fell 21.0% in the second quarter.
“The world continues to be impacted by Covid-19 which started as a health crisis and evolved to become a global economic and social crisis,” Chairman and CEO Jonas Prising said. “While certain regions continue to deal with the pandemic at elevated levels, elsewhere lockdowns are easing, economies are slowly reopening and people are returning to work.”
| (US$ millions) | Q2 2020 | Q2 2019 | % change | % constant currency |
| Revenue | $3,742.2 | $5,373.1 | -30.4% | -28.0% |
| Gross profit | $576.7 | $870.4 | -33.8% | -31.9% |
| Gross margin | 15.4% | 16.2% | ||
| Net earnings/ loss | -$64.4 | $127.3 | nm | nm |
ManpowerGroup posted a net loss for the second quarter. It noted the quarter included goodwill and other impairment and discrete tax items; without these, the company would have posted diluted earnings per share of 18 cents. In the second quarter of last year, diluted earnings per share was $2.11.
Revenue by geography
| (US$ millions) | Q2 2020 | Q2 2019 | % change | % constant currency |
| Americas | ||||
| United States | $515.9 | $652.7 | -21.0% | -21.0% |
| Other Americas | $320.7 | $415.5 | -22.8% | -10.0% |
| Total Americas | $836.6 | $1,068.2 | -21.7% | -16.7% |
| Southern Europe | ||||
| France | $736.0 | $1,425.3 | -48.4% | -47.5% |
| Italy | $268.5 | $394.4 | -31.9% | -30.7% |
| Other Southern Europe | $466.3 | $574.6 | -18.9% | -18.2% |
| Total Southern Europe | $1,470.8 | $2,394.3 | -38.6% | -37.7% |
| Northern Europe | $865.7 | $1,194.1 | -27.5% | -24.2% |
| Asia Pacific Middle East | $569.1 | $716.5 | -20.6% | -19.1% |
ManpowerGroup noted progressive improvement in revenue trends in the second quarter.
Guidance
For the third quarter, ManpowerGroup expects:
- Total revenue, down 18% to 20% (down 18% to 20% in constant currency)
- Americas revenue, down 21% to 23% (down 17% to 19% in constant currency)
- Southern Europe revenue, down 20% to 20% (down 21% to 23% in constant currency)
- Northern Europe revenue, down 16% to 18% (down 17% to 19% in constant currency)
- Asia Pacific Middle East revenue, down 9% to 11% (down 8% to 10% in constant currency)
Share price and market cap
Shares in ManpowerGroup were down 4.75% to $69.45 as of 12:49 p.m. Eastern time; the company had a market cap of $4.23 billion, according to FT.com.