MILWAUKEE (AP) -- ManpowerGroup said Friday that its second-quarter net income jumped 66 percent, as the staffing company's cost cuts made up for sliding sales.
The Milwaukee company said the better-than-expected profit reflects its restructuring efforts and a stabilizing economy. ManpowerGroup has been cutting jobs and costs as economic weakness in Europe weighs on hiring there — and the company's sales. Its outlook for the current quarter was also brighter than Wall Street had expected, and shares rose $4.16, or 6.7 percent, to $66.01 in morning trading. The stock touched a 2-year high.
For the three months ended June 30, ManpowerGroup earned $68.2 million, or 87 cents per share, up from $41 million, or 51 cents per share, in the same quarter of 2012. Excluding one-time costs for employee severance and office closings, profit came to $1.05 per share.
Revenue fell 3 percent, to $5.04 billion from $5.21 billion.
Analysts, on average, expected a profit of 89 cents per share on $5 billion in revenue, according to FactSet.
Helping profit were lower costs. Selling and administrative expenses declined 8 percent to $708.3 million. The company's costs to run its business fell 3 percent to $4.2 billion.
For the current quarter, ManpowerGroup projected a profit of $1.02 to $1.10 per share. Analysts expect 91 cents per share.