Manpower outlook brightens as hiring picks up in Europe

Reuters

Oct 21 (Reuters) - ManpowerGroup Inc, the world'sNo.3 staffing company, reported a 50 percent jump in quarterlyprofit due to cost-cutting and improved hiring trends in Europe,and forecast current-quarter profit above analysts'expectations.

Manpower shares rose 5 percent before the bell on Monday.

Switzerland's Adecco and Netherlands-basedRandstad, the world's top two staffing companies, werealso upbeat about their European businesses in the last quarter.

The euro-zone debt crisis has been a drag on results of moststaffing firms. Manpower, which gets about two-thirds of itsrevenue from Europe, has shut offices in the region to cut costsas businesses held back hiring.

"Our European operations' revenue experienced slow butsteadily improving trends throughout the quarter," ChiefExecutive Jeffrey Joerres said in a statement on Monday.

Manpower said it expects a profit of between $1.18 and $1.26per share in the fourth quarter, topping the average analystestimate of $1.16 per share.

The company's revenue rose for the first time in sixquarters to $5.19 billion in the third quarter, edging past theconsensus estimate of $5.10 billion.

Net income rose to $94.7 million, or $1.18 per share, from$63.1 million, or 79 cents per share, a year earlier.

The results include a restructuring charge of $8.1 million,related to office consolidations and severance costs.

Excluding items, Manpower earned $1.26 per share. Analystson average expected earnings of $1.09 per share, according toThomson Reuters I/B/E/S.

Manpower shares were trading at $82.62 in premarket tradingafter closing at $79.31 on the New York Stock Exchange onFriday.

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