ManpowerGroup 2Q net income up 66 pct on cost cuts

Cost cuts power ManpowerGroup 2Q profit, up 66 percent even as revenue slides; stock jumps

Associated Press

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.

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