Milwaukee-based Manpower reported during an earnings call that first-quarter net income plummeted 97% due to a deteriorating global market and a reorganization charge.
The staffing agency’s first-quarter net earnings were reported to be $2.3 million or $0.03 per share, compared to $75.5 million or $0.94 per share in the year-ago quarter. Revenue from services declined 32% to $3.65 billion from $5.39 billion last year.
Thirteen analysts polled before the earnings call projected a loss of $.09 per share, so the earnings were much better than expected.
Results for the quarter included a reorganization charge of $4.3 million after tax, or $0.06 per share, primarily related to severances, office closures and consolidations.
Jeffrey Joerres, Chairman and Chief Executive Officer said, “The continued deterioration of the labor markets throughout the world has put pressure on our profitability. In the U.S. and French markets, we have experienced revenue stability over the last five weeks. The European geography, in general, has declined and continued to do so throughout the first quarter.”
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