MAN - Earnings call 3 2023 | ManpowerGroup Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to ManpowerGroup's Third Quarter Earnings Results Conference Call. [Operator Instructions]. This call is being recorded.

If you care to drop off now, please do so.

I would now like to turn the call over to ManpowerGroup's Chairman and CEO, Mr. Prising. Jonas begin. may you Sir,

Jonas Prising

to the for conference third quarter call XXXX. Welcome

is Financial today. Officer, Chief with Jack Our McGinnis me

For your at convenience, within the we have included Relations of our section our website manpowergroup.com. Investor prepared remarks

we through I'll I will quarter. Jack concluding then fourth and share go will quarter of results before highlights the quarter for of some Then third some start through guidance start session. the the of our going Q&A by the XXXX. thoughts And

the cover safe harbor now will language. Jack

John McGinnis

conference forward-looking unknown expectations subject are any obligation no statements, forward-looking This uncertainties. concerning call differ and geopolitical or are management's update statements or to statements everyone. which economic results the might statements. to materially morning, Good We current statements. includes Actual based forward-looking revise on These risks from assume including beliefs. in uncertainty, those and known and projected

release information our call actual identifies Slide and materially and earnings of that statements this results may factors X presentation cause our non-GAAP measures. regarding made differ in further of reconciliation to forward-looking

Jonas Prising

Thanks, by to our support terrorist working Jack. operations. just has thanked XX with sadness I've the in the this and colleagues to Israel tirelessly our open heartfelt those conflict. operated day-to-day unfolding years. sharing to on still Israel help devastating for run attacks spoken the express over for at our and Israeli morning like I'd and ManpowerGroup them impacted

and dedication extremely and care suffering ongoing, clients challenging all take Amid their I to is that resilience each in times. the these families, other, am of during associates our their of

resulting and teams economic are and leaders This impacting how clients North in limited manageable my will Europe In hiring is recent the discussions markets and evolve. evolve business postponements. initiatives, weeks, yet echo with to looking this cost in they sentiment short plans. spent how an Many the America. the forefront this environment. with their at and I've increase visibility in hiring reduction and Turning in may headwinds how on How is global a slowdowns the our other labor of start term, time now, outlook. clients is of and The project confirm topic broader

with broader we we're in tracks Europe. pressures trends we building, Last that North shared sentiment the see and quarter, economic America well. particularly as This and data

last the seen Over hiring across these increase services, and slowing we hiring and in in few declining global spending pandemic. pressures months, of some paused outputs companies have industries following bullish activity with investment period hiring a as and subdued new manufacturing, post

in Asia America earn regions consumer is by solid. Latin rates most is Pac to many Denver, in the environment global and and holding, every council and Conference continue reported business meeting albeit consensus core inflation months for And and Europe, slowing, up ago, the slowing impacted easing, economic in the are If economic spending even general are compared term. reduced short will bright business continue to Just spots, last there across CEOs I X sector and the joined that and slowly. move remain Board in workers week, strong, where was North most more employment America optimism

permanent and this past recruitment on of permanent services Europe. periods and uneven they on In we the act staffing uncertainty and North saw economic their uncertain headwinds, way have done increased to environment, organizations existing in back in America and holding pulling workforce

down third constant $X.X results. revenue quarter, year-over-year Moving billion, X% currency. was our on In the to financial in

year-over-year. charges small EBITDA Argentina EBITDA for million. and constant Our foreign in for Adjusted XX% decrease million, sale, exchange on $XX hyperinflationary was reported $XXX loss was a representing quarter currency the restructuring, a

constant share per EBITDA on adjusted per basis year-over-year were $X.XX an adjusted Adjusted margin and margin was diluted in was was Earnings basis. EBITDA $X.XX reported earnings X.X%. share on currency. down Reported and XX% X.X% a

pivot Although a adjust must while the to to ready is recovery existing the hard to improves. the decades reality when of experience being us of timing we that quickly predict, always situation tells

the Our into industry this, downturn is the at an the the often it side. first is from we first economic outlooks going impact the feel to And edge. leading and improving by to mean benefit other on

pace. markets today, So a though slowing environment. in a clearly are we and more are continue, at transformation Labor holding steady, overall agendas moderate

Experis times, Companies show we to path initiatives pause their people see are a at and the reluctant this on skills demand to Manpower reduce trusted them evidenced offerings, people companies need learn the in-demand which MyPath and navigate scale uncertainty. and to speed. partners help In their for develop uncertain workforce Academy upskill and in people or and to

model Our pressures out and begins relevant. the more helps and to them are of of downturn prepared And accelerate has clients again. value business our some absorb they been once to feeling candidate proposition the today recovery never economic the

that business future insight the grow innovating the Employers today. prepare plan the We digitizing managing our our competitive be value candidates confident developing executing profitably and and an on by we strategy. the headwinds to data-led remain and while agile the is for term and how for clear workforce and help guidance clients diversifying, long

to that, to the you over With Jack financials. take through

John McGinnis

currency Revenues Jonas. margin came guidance the our above quarter at the guidance range. came midpoint range. third Gross Thanks, of in in constant in our profit

compared $XXX to constant currency was period. prior a representing million, adjusted, decrease year As in EBITDA the XX%

of was guidance and margin our came representing points As basis range, EBITDA in at the adjusted, decline of XXX year-over-year. X.X% midpoint

movements had impact quarter, an foreign results. year-over-year the During on our currency

revenue Organic the quarter. about of drove U.S. dollar days impact currency translation currency the adjusted Foreign reported to to compared in X% favorable X% trend decrease revenue constant decreased a X%. the

This as related currency. included and business restructuring during Argentina in a the to required a of a currency Argentina of EPS Reported Argentine and foreign treated sale quarter. to noncash is currency share of their the was earnings per is accounting charges economy $X.XX the hyperinflationary Turning the our loss $X.XX related local a to on the noncash hyperinflationary charge reflect our translation loss translation Argentina bridge. to Philippines small the as of operates and business. be losses noncash devaluation peso our business

included the which during a had and a pound positive currency worse foreign and from performance impact weighted of lower impact Walking other of quarter, in share EPS second of $X.XX, impact to our $X.XX guidance repurchases a the positive adjusted $X.XX, and expenses, half tax the due was which euro weakening a rate, charges, that positive which average lower impact. results operational to interest guidance our a of our midpoint, $X.XX. the a had count a than $X.XX, $X.XX effective of had due better these was slightly Excluding quarter the the

business Talent constant organic the revenue Experis declined decline customer basis, segments. The revenue brand brand by review XX%. by line. lower the enterprise from XX% Year-over-year, and and convenience let's of X%, Manpower Next, decline an represented by declined Solutions brand on our both Experis currency a reported activity

Within an from enterprise be to Solutions, expected a weak. of year-over-year clients sequential technology softening saw Demand continue significant the in second from quarter. activity well decline Talent revenue we as as RPO

the revenue MSP certain while in quarter second higher saw declines -- revenue year-over-year levels steady from in activity outplacement business fairly revenue volumes with experienced reduced Our significant the quarter. quarter, the Management as on lower right growth we margin

Looking at margin profit detail. our gross in

level. items contributed point Right strong. from continued basis Other XX Solutions transition to Permanent reduction the profit within to growth Solutions margin at hiring strong quarter a XX.X%. XX outplacement pricing management as to came soften. including Staffing improvement margin basis point gross demand margin recruitment, resulted career reflected as second Talent points point in XX a Talent steady XX decrease. RPO, remains year-over-year GP contributed due reduction mix contributed activity gross Our basis of a permanent basis in as with margin shifts

line. to on Moving gross by the profit business

of brand the profit. gross comprised During quarter, Manpower XX%

and business XX% comprised XX%. Talent Our comprised Experis Solutions professional

profit During on currency the gross organic basis year-over-year. an decreased quarter, constant our consolidated X%

of Our Manpower organic profit decrease gross constant brand in an X% year-over-year. reported currency

Experis to in This during brand. currency by in partially our permanent was recruitment on driven decreased decreased year-over-year. the the weaken in for gross XX% constant brand quarter. declines the within Organic profit higher Solutions overall other in right profit Talent of currency by as and was gross GP Permanent activity. outplacement This recruitment year-over-year. RPO XX% decrease drove increased continued mainly constant management in Experis services rate Organic offset

slight in expense gross in profit quarter in the a $XXX Reported SG&A quarter. was decrease very million. the experienced MSP

sequential SG&A quarter. restructuring of result costs, further on from on quarter reductions decreased year-over-year, the a and Excluding second level a into sequentially of during X% X% the headcount X.X% in cost reflects will decrease reduction quarter, flat quarterly the year-over-year in basis. representing a significant the currency This constant resulting in an cost which actions same fourth reduction basis organic the

expense. transformation the included time, continue invest corporate same At in programs we to in

and finance worldwide. to expected productivity and and enhancements efficiency across technology investments strategic long-term drive Our our medium- functions

of The as by XX.X% of million, the revenue currency reflecting $XX of $XX SG&A lower million. in underlying third represented Restructuring million. the a in expenses Adjusted decline. revenue $XX on costs consisted changes costs quarter, decreases SG&A offset percentage leverage constant largely operational operational totaled of currency

in of $XX Americas currency compared was $X.X a of representing OUP includes million constant Revenue million Reported consolidated The basis. $X X% on year and revenue. prior the restructuring quarter XX% comprised was the segment decrease billion, to period in costs. a

OUP adjusted, and was was X%. As million margin $XX OUP

U.S. of in was related The comprising the The majority the prior segment America. America adjusted representing Latin the country U.S. year. to a costs is largest of $XXX million Revenue in segment, during restructuring in quarter, XX% to reported revenues. compared balance decrease North XX% the days with the the the Americas

OUP the prior to the adjusted a was our for million $XX representing As quarter, exclude restructuring XX% U.S. business decrease of from year. in costs,

was OUP margin As adjusted, X.X%.

quarter basis comprised the days XX% quarter. XX% in the during gross decrease an the Revenue in U.S. second Within the representing adjusted quarter. brand improvement Manpower profit U.S., the a for during on Manpower decreased the the of the from XX% brand

Within Experis revenue a gross quarter. XX% XX% XX%. in the growth approximately U.S. The of significant On of organic the revenues. in adjusted IT basis, the decreased U.S. anniversary-ed comprise XX% Experis XXXX profit Experis skills brand days comprised in we of as U.S.,

current significant who in gross As contributed the reduced XX% MSP in at XX% the revenue in lower the year-ago from continued in strong decline growth This while as revenues to levels permanent period had third revenue U.S. referenced Talent outpacing enterprise as decrease clients drove we hiring U.S. programs decline and a Management Solutions the of Right have demand experienced in business profit weak the some driven activity activity U.S. earlier, reflected revenue by the was year. increases. saw lower RPO quarter. our within margin The business quarter. in

U.S., revenue from the year-over-year of rate RPO, overall, decline and the the quarter relatively levels second we compared to Management U.S. Right our revenues slightly of XXXX in all MSP quarter. improved quarter. fourth businesses the for In a steady experienced In expect third as

the in costs. X% currency. quarter. in revenue Southern $X Southern million decrease consolidated organic and came comprised in Revenue Europe $XX revenue billion, million $X.X at was restructuring OUP of a Europe representing XX% of in includes constant Reported

As OUP the X.X%. million OUP related margin majority was The Southern office $XX of was in the head Europe regional reductions and restructuring to team. adjusted, charges

in X%. revenue constant on France charges, business comprised OUP and restructuring XX% adjusted basis. segment the OUP of adjusted equaled days $XX was currency. for a decrease currency adjusting Europe of $X.X million representing quarter revenue XX% constant France in our modest down a quarter, in Southern was X% billion margin After Adjusted the the for

to estimating fourth the from activity in France trend quarter a date. the the third to revenue for trend represent on decline modest are based further constant October We currency year-over-year quarter

the equaled in $XX in basis. OUP X% and million Revenue was equaled margin a Italy on X.X%. and constant was $XXX million OUP currency adjusted quarter days down

to expect third compared quarter the a of revenue We in currency similar the quarter. constant decline fourth rate

consolidated costs constant revenue was the X.X%. Northern negative $X in of $XXX decline excluding million XX% of in OUP Our $XX adjusted of After OUP margin represented Revenue million, comprised restructuring Europe million, quarter. a segment XX% was negative currency.

Netherlands charges wind the related Germany represented and within and to of businesses and additional largely in million modest U.K., the the the in mainly view optimization in ongoing to $XX head related Belgium. down, related $X workforce office restructuring The the in rightsizing Nordics, charges Proservia activities million

Northern revenues the in segment XX% U.K., largest segment Europe represented of Our is in market which the quarter.

XX% U.K. decrease quarter, constant reflects basis. adjusted the During quarter decreased the an XX% currency basis. from second the on on additional the revenues days in a This decline same

expect to quarter of revenue constant third the We the currency fourth in similar a decline quarter. compared rate

Manpower the adjusted in in growth, quarter the the Germany, X% consecutive by automotive currency increased our representing quarters days In due X sector. in to of revenues particularly constant driven business, strength

clients previously and business quarter. impacted The wind progress of managed during announced advancing down councils workers' with is in Proservia with the service the our in significant Germany

wind-down our half we remaining the some first XXXX, the concluding separately. of conclude carve will actions We activity the with are tracking related to out which year by end through of transition

the the we additional fourth a the in charges related and completion drag to restructuring Overall, are slightly we Proservia forward. to revenue Germany the going of improve provide profitability fourth compared growth anticipate fourth the We will announce constant and has will third lower operations when further quarter, of wind-down in been down our activity currency in earnings. trend. our wind business rate expecting update quarter significant a quarter the quarter a

In and improved from basis. on rate revenue this adjusted the second on of days decreased constant the X% basis Netherlands, decline represented slightly a the a quarter currency same

adjusted restructuring modest segment business, related down total margin was Middle revenue constant was X% Asia The million currency comprises X.X%. OUP our revenue. of was to East million. in to XX% OUP Australia Pacific and excluding quarter, $XXX company $XX the costs After In

market represented fourth revenues constant remain the XX% business, in we performance the XX% in currency. The in Japan, revenue segment We continued with expect is growth of in largest pleased quarter. segment Japan which our and days Japan APME the strong Revenue in consistent of grew very the quarter. adjusted

now our in flow completed balance transitions which during I'll represented the In compared free quarter, Philippines also the turn third million sale a prior franchises the going $XXX into and the quarter, cash We million flow to manpower sheet. to of year. $XXX cash business forward.

At the of at third the XX flat outstanding sales quarter, days days. end were

$XX represented quarter, third the During expenditures capital million.

million. shares During quarter, $XX of for XXX,XXX repurchased third we stock the

XXX,XXX and September have XXXX. XXXX of for under XX, remaining shares shares the of program we in approved for additional share approved X repurchase August an program the remaining of million in share under August As repurchase

cash the and ended debt with $XXX total sheet of equaled quarter of million end. at Net balance million Our $XXX $XXX debt quarter million.

EBITDA quarter X.XX% end debt total ratios adjusted and trailing of to at XX debt to adjusted total at capitalization total debt Our gross reflect months XX%.

unchanged facilities debt remained during the Our quarter. credit and

outlook XXXX. is to for cautious forecast businesses further Next, activity third I'll anticipates trends our the Manpower quarter on quarter the in review challenging be fourth declines will in to Based our with October in continue of our the quarter and Europe. and fourth date, that

anticipates business also significant Our activity a Israel conflict. in the forecast to reduction our due current in

Our forecast slowing and ongoing further by recruitment anticipates being of offset activity permanent also actions cost taken.

in to for currency share per fourth includes the to $X.XX the $X.XX share. an range which of earnings underlying of forecasting quarter foreign be impact are We $X.XX, unfavorable per

currency translation bottom foreign estimates rate the our disclosed the of have We at guidance slide.

X% revenue currency and of constant a constant on the X%, represents the an decrease to is represents The range impact dispositions revenue decrease. third ignoring additional adjusted This Our working guidance contributes between a and trend, the net X% of trend days a and quarter decrease X.X% basis. days midpoint from at same about rounding an organic ] midpoint. of at less the X% decrease [ currency

We fourth effect tax which the minimal during prior the for margin XX.X%, with compared year. tax reflects earnings the from to that of fourth be midpoint estimate EBITDA basis the in our the expect at to quarter effective points current offsetting will expected mix rate lower quarter environment tax geographies lower down items. the be We XXX the

lower tax Compared geographies estimate rate improve, rate the our a before a EPS. worsening rate conditions, to to begin in previous the our of begin in tax our rates. business this X% to the lower When reduction to update return fourth XX% quarter represents will

in the based developments. French of As the XXXX. we business brief wanted component I consider other government known on CVAE, abolish provide tax-related matters XXXX, their of to French business had to remaining fully French the Previously, tax update the recent the reduction for intention tax, announced as a on

publicized the was announced business budget and that French years. remaining of late abolished preliminary would tax next component in over now be September the basis French rata instead on the pro X The a

result, reduction a with X our global an spread of the effective tax the will from anticipated XX years As points XXXX. X.X% CVAE improvement next additional basis be about rate in abolishment the over of in

developments is reviewed through to budget continue France any the the monitor will on parliament as We by year-end.

repurchases, estimate not guidance weighted to or we As be charges our average share our usual, million. restructuring $XX.X additional and incorporate does shares

restructuring I of wind-down our when those have additional separately expect in we fourth additional Germany, disclose As business with managed quarter restructuring earnings. and any we associated service do charges mentioned, to Proservia and we the our charges report will

Our will back it also now guidance does for include impact the not of translation I our Jonas. will to the business, that separately. noncash hyperinflationary adjustment Argentina currency report we also turn and

Jonas Prising

On I environment call, our maximize investments. Jack. strategy not return we're simplify on our our operations last current away shy from taking the that shared and Thanks, to on adapting actions that our decisive deliver will and to market

quarter, third to continued the plan. we this execute In against

team to be confident growth that rebound leadership ready our a versus pen using manage and will brush preserve in a the efficient and costs is when actions margin more environment, experienced long Our for the broad point in term. the invest occurs it we're and fine current for

technology and executing not have diversification, to across economic several and doubling agenda processes benefit to systems standardized innovation strategy and enable their global execute we We global global increased and We're speed on centralized can transformation By of and adoption, leveraging in a in will at the digitization functions. on operational support drive finance for our been years. driving decision-making country platforms market our market strategic teams so share. and focus leading down we

and recruiter the infrastructure IT insights. generate about client drive candidate tasks, productivity to and nonvalue-added opportunity finance to excited global leverage automate our and We're valuable to

brands. we Our across our accelerate business is diversification how plan higher-margin all growth of

believe, due will and skilled demographics means labor For skills can in structurally with staffing and needs. permanent talent be best-in-class shifting candidates, we loyalty both so to this constrained we more deliver building markets, Manpower, in temporary

and and us work who tells up them to believe trust data move and in want earn will and companies for that people research more. guide own they to Our

I as career positioning that potential launches their our talent as candidates they journey. employer new am choice of their markets Power, our and guide key Manpower an our them of this expertise achieve campaign, strengthening many to progress with delighted Human and data, in for teams week, to the

offer Our example and also and and that skills workers role message development side build is preparing opportunities. in values to future This just is your we to Manpower green is to career you, by one your and our more we your are clear. of work committed campaign are for more digital. people one great

green new energy, electrification, to millions of hydrogen Global technology, renewable battery demand more. fill roles for transition skilled in creates workers energy and

We recently for and as new [ are committed for by the and battery to jobs European people chain opportunities preparing with ] these Inno workers as many our announced partnership to Battery green Alliance in the Energy XXX,XXX XXXX. value upskill

our to a our leader in named services assessment investment highly recognized transformation scoring on Manpower and staffing, services. academies IT too. been associate mobile and talent emphasis partners contingent reputation, analysts Experis U.S. project ]. strategic U.K. and in and has and brand has in in services, strategic in for candidate-facing capabilities AI-enabled star ad solutions staffing its industry and upskilling leader experience guide its to performer strong associated as for Group's MyPath [ companies highly including by recognized our peak a scoring And Everest Our matrix been program, contingent solutions the reskilling of is managed

our able our I'd our human communities. our to critical around close Employers ability every success to the path growth time their with our for now teams to clients, partners that develop there we're people by and is and the capital understand like how people, our train the is consistently hire, which is engagement and horizon. to deliver and no on thanking contributions, to world to

Q&A. to Operator? now the I'd open for like line

Operator

Mark Instructions] first Baird. question with Marcon [Operator comes from Our

Mark Marcon

markets really rates philosophical an us and quarter? for in the exit exit of each With A questions in France exited terms regards the you the U.S. and number quick then of as can Italy, we question. the those of rates to one couple X give update major where were

John McGinnis

I'd Sure, Mark. that. with happy be to start

adjusted exited an and So full on we it quarter, say rate quarter the better on overall the U.S. basis. as we basis slightly look was than at the days a I'd

that's for for the we to say when [indiscernible], to fourth expect as seeing September. you And quarter we slightly the stable overall days guided look quarter. U.S. the the So better, I'd adjusted, better we're at quarter, kind of into XX at and total the slightly what the in did fourth

significant thing a remember the quarter think I was year off quarter period. the the from that to I in fourth ago there is third other the drop

France, at of So that's quarter can of days quarter in a the we the in month say part minus And for on that to ended X% the adjusted to consideration. I September. minus basis move comparing overall. month If I the about see -- the X% you would the

to out terms relevant the August I'd bit think say we decreases at But QX, was why during additional PRISM X% some improved And additional some that France. certainly guidance that's data. guide a showed decrease, fourth did the guess did came October. data the for the industry into into of our see I our slightly midpoint for showing that -- softening steeper the is September. about quarter more at for I into that indicate And that we minus and in

] was Italy quarter days about million revenue at say at quarter as trend basis came about a adjusted $X level the into the were I'd same minus look they adjusted of we of a ] fourth trending. end to $X guide ended say rate. we million fourth quarter Italy, they overall and [ The similar [ quarter, pretty for that And similar at on the the where days for quarter. the the And minus in I'd see

color on the -- the a largest on that's X Mark. businesses, large So little

Mark Marcon

ask Great. it a GP, if to this question, time. sitting that right percentage And you then, this is how now? I'll of wonder Jack, as I'm Perm going ask always so

John McGinnis

Yes.

on And said, came saw perm development quarter. it in that down total it continue the That perm we further. that our we to quite was of expected, into the step about a as to step we off XX.X% expectations too in down far XX.X% So we third big spot the range. did come away Mark, with we to fact remember, talk were we you'll expected takes where much the GP quarter not where were, we bit. perm would of That as during that and pre-pandemic, about pretty second

bit. as is mix a So of perm has a -- GP quite normalized

Mark Marcon

a it -- Wondering, at doing Great. by wondering and have and Jack, then Jonas, do I'm this question. how obviously, restructuring excess varies organization, how much philosophical And but point? country present you're the at capacity you levels, across

like And relative then trends a X% now third like think do say, projecting how increase to, in you the about that we're quarter. the GDP seeing U.S. here in the Fed's GDP the Atlanta

been Just that. just a about of and the thinking interesting kind environment. of how discussion overall, around soft staffing clearly of think in wondering And just lot I'm recessionary landing you terms yet has about a in

Jonas Prising

has business how thank tell about have let quarter, I'm economist happy. GDP me I'm growth but about and what third not how you. the predict Yes, to and sort in you explain Mark, that seeing a we're our Well, and really of an thinking we could we're X% this.

As notwithstanding [ growth which still operating industry in you as point Europe conditions. in as the U.S., are well under ] is GDP numbers positive, recessionary-like correctly our both out,

of we're in Canada, well. U.S., as across the countries the European here So in most negative

really way to our time mentioned the business we've broad about a at fine-point is, remarks, opposed the pen prepared as So managing brush. think a in we as using this

to extend. and our increase all realization brands, our seeing pipeline We in strength, our time share value market seeing of are maintaining for conclusion sales growth, but driving

overall. through short-term see slowing the adjusting managing have think in delivery and a to projects us we're We that down how you our demand that's don't of Clearly, we cost terms capabilities, return. bringing we're are what postponing

transformation elimination spoke we finance about productivity to well activity, centralizing with a as down around platforms. the on this and remarks organization our one and global like whole efficiency and not recruiters drive the technology for an as in prepared our pausing as a So activity is doubling projects, greater technology

have that new that's So we we're start it. to such increased it stabilize to coming and on we still bring through the in in other when we clearly, we see bring the is time. as people stage, plan meet business at demand start that And upturn to so we that this time there and at the to so the how side, the have slack managing and time see point in recruiters

Operator

Our next question BMO Markets. comes with Capital from Jeff Silber

Jeffrey Silber

a saying what need mentioned do I get before cost the color that's You where were. actions. actions bit to you to enough we see cost more? more little And do was need or just they

John McGinnis

Thanks, I'm question. to Jeff. that Yes, happy to talk

So as that released significant results the quarter heavily did actions we and we've we we leaning would into be in we cost take the that more when said, third second up teed quarter, that.

it's -- As a discussion having. a were we previous just bit of continuation the of

very want sales demand. the market to to extremely are the take well and on be producers Jonas' you careful see improving where the based trends. sales. where doing preserving We're side. the as in we share sales point, our activity on that's at to that look pressure, careful the and some opportunity So should when that on you We are We're seeing start prepared existing a we've But of expect way. adjusting to adjustments, made businesses most the biggest otherwise we're right? being So -- we

So where areas would there. biggest terms is doing rightsizing made of that and where we've of we're market significant of being that headcount. above Germany key down is another the would X% be? I some about The our The one adjustments. decreases. we definitely in some say in U.S. year-over-year, talked the We about well pretty U.S. talked

the which to from you fourth in manpower significant U.K. adjustments big to in Proservia going to say that largely to that, We'll changes we're well, quarter. Germany making in business of some will forward, in we the result can decreases made more a enterprise have our about be the see clients. as But more a structure the and adapt head And the business. office as market

made adjustments. big we've down QX. QX markets our in from saw trends, The some came the Other to Nordics, where you bit a Nordics quite

we've reductions that. significant the as Sweden in those part bigger of say pretty Norway and So are some I'd ones. made

France the that in as terms we're would of be highlight. adjustments those continue bigger say, well, to but numbers driving decreases, the would I the in markets that make We I'd

Jeffrey Silber

helpful. really gears pricing or bill That's talk pressure? shift pushback environment. from competitive maybe any you Okay. If to pay Maybe how and either both about rates we can seeing we the can clients going? more are And are rates

Jonas Prising

labor pricing by the driven And on competitive that environment really saw based our can remains environment the pricing remains various rational. decline the the you we just margins, see countries, all points And Well, broadly, was strength in not that mix say, solid. pricing staffing but would I concessions. by basis the of of between markets XX

labor We pricing. very the as sets for are means constraints by talent positioned pricing right we on valuable the maintain our sure way the that that that we discipline. in skill companies, is the can we that have the we seen we with make provide in the demand and markets client our disciplined And that so remain extremely

of overall, competitive it for but it rational. So is, a It course, still us. and is pricing is positive environment solid

Operator

Josh next comes Our UBS. from question with Chan

Joshua Chan

trend. QX a relatively comment you commentary macro-oriented another QX. improving if trend business I seems, But subdued. you're improvement guess into relatively in could U.S. guess, and on the wondering I your guess was saw U.S. forecasting I I the

business about trajectory of So from thinking and I'm perspective? just the business you that U.S. wondering trend the feel how about how a you're

Jonas Prising

I'll can give Yes. And Thanks. a start Jack more specificity. then and little It's bit a question. great maybe

observing change we're the France we to in Italy. other really Europe, is primarily a seeing countries quarter, back that degree, fourth from what Manpower softening into in at the some and brand primarily lesser are stepping So the

So look as the outlook. that's at the change you

Talent true that quarter a look and stable the the stability U.S. are perspective, out you And going relates Solutions geo for heading if into perspective, into primarily noted, mentioned, global weakness Manpower. in as X all I from is at third you we in and just largely, And quarter brands. that this globally as sequential So comes from quarter, weakness to see fourth Europe. you've fourth And a in the the Experis step weakness sequentially for the and

the business Jack, of trends. give some a could U.S. more on little bit specificity Maybe, you

John McGinnis

Sure. happy I'd be to.

Manpower see would I U.S. did on side, the we the Josh, So improvement. say slight and

adjusted decrease days in the remember for let's QX think Manpower minus I adjusted, days was talking XX%. So

So to And that at to slight quite QX. in expect improvement improved XX% minus that that point, and we a some significant in see trend. that drop

And said, difficult a So right? very, Experis, then operating still on very being environment, pretty similar. that

to there being That minus talked adjusted into So improved into QX. down XX% QX days adjusted, slightly And our minus improvement outlook the we days in QX. XX%. slight about is

And of going similar you when consider fourth activity the what quarter. is really of seeing into to Jonas ago what stable the said, period, year we're levels kind means that

say So I cautious. would still

the and are in year-over-year the the will basis. trends you a period, not materialize see as seen November this the think prior the enterprise continuation sector on ramp may the that bit a October anniversary just on show sluggish cautious I of We that said, traditional year we we've earlier But in based rate year. being slight that in with some improvement typically

I our in QX U.S. And saw We DOMSP as globally which previous the it -- side, QX. biggest that but a Talent Jonas said, U.S. off perm. to perm I in the quarters. bit same the Solutions off the Talent Management significantly from come the the normalization the biggest in stability a to come Right in won't has do to about is think bit, Solutions We more the expect and continue degree impact came off on of of it talked at

at levels fourth quarter. stability So we those lower into see in the the that kind of

Joshua Chan

And piggybacking there does sound impacting good really on That's of guess your could gross the stability. margin that's like but it last I Jack, some your color. on comment, that perm obviously, sequential now, coming be kind off.

thinking guess, that? gross XX or if a impact basis you maximum margin forward? are that peak headwind you forward? I of points So How are thinking going then going will, kind of become specifically, does impact, about perm And about how a you

John McGinnis

Yes. I'd be to kind at is it's will at say really QX you XX.X% tell say a of whether fair from peak. margin It the question. the to sequentially I going to we're XX to is midpoint. going XX.X% GP looking QX that hard

to of starting the in last in are So second half anniversary fairly drop year. we the saw we perm some close that of

-- good holding into like that have normalized lower it that impact we does would margins lower be just those that you say we've we're the But it change will bit it levels be to and I'd anticipating how year-over-year say should quarter recently see sequentially. fairly start I and up guide we'll to So likely on will still expect anniversary a continues. as quite a feel fourth with GP the

Operator

George Goldman comes question with next our Tong from And Sachs.

Keen Fai Tong

You performed quarter noted demand trends course be in over the in where in of from to staffing to you enterprise technology you're tech the weakness tech and subdued and on the October clients continued the quarter. how elaborate date? seeing Can

Jonas Prising

industries continued in it's I the It quite I'd from were sequentially, here, in have demand Experis would tech here seen U.S. that both think and the seem And a our to the in be at the telcos. think are also biggest that big, prior was terms be things and are of the and communications remarks especially now. verticals drops, U.S. say, you the we least at They Europe. George, have they heard the that globally say steady they but I in stabilized low to that -- Overall, the ones industry for level and for holding weak, as

that's at seeing. of declines a they so the driving we're verticals, are the for global but in in that brands, are all at the other for have but particular U.S. And we significant a strength and Experis ones our level. what And

John McGinnis

would little and to other guess of some some well. call just I of a as know know others verticals on George, you the the about I on add, the like color I

little that. is this time a about maybe a talk to bit So good maybe

overall to sector, pressure most soft. on probably would continues. side, say the an enterprise significant the So the that we've areas year, significant Jonas' weaker the tech during the point, with year Most some talked on being logistics more basis. of been has other the about of -- I

side, outside manufacturing very the on say continues I'd to be of food and auto sluggish. manufacturing

talked that in in of remarks. manufacturing our can terms We You prepared PMIs that. about see

our weaker and And I really France then as to been say banking. more is say, construction, in And well. I'd Norway would which European business has relevant more recently, we've seen

strong, was bit now to a quarter. more the first more relatively I'm we're end the as we banks of talking half U.S. and banking now starting was year. pull back So see third market the And of flattish, the in

reacting kind So of to currently. environment the current banks we see

Auto I'd strong. say be side, on to continues the flip

That You France an an that is the in certainly and overall has on see quarter. generally and a well. strength public of the been U.K. has continues although in mentioned third resilient that in area Sweden Germany Food I in that as little I softened sector more basis, numbers. bit our would the say

color we're of the overall industry of in in an what seeing So a more little terms terms basis. on verticals

Keen Fai Tong

That's slowdown recovery very and then terms terms to the subsequent the characteristics of up. way way And cycle, helpful. current also its you has down compare cycles and follow expect as macro in do in with prior you How terms unique and every in know, up, duration? own to of of the depth

Jonas Prising

the Well, be George, we I depth, I if don't. think easy, then knew it'd but

would are where commercial with we have quarter, like So some in lot coming go differences little by and trend. economic we towards industry largely, we to way this in normally second would prior staffing the the something length a economic think, higher And earlier the our that talked pandemic that's economic quarter skill and maybe earlier. little out we to the largely is through and We of start seen playing staffing as decline see and a that what delays and frankly, about professional else. a would third hold sequencing, bit say in cycles cycle perm little post-pandemic to a staffing slowdown and manage down been being bit IT we sets. of everybody seem But through these can timings, a step reversed. some bit be would coming is explained anomalies, is that little of back But projects into -- see we on I uncertainty the longer this the bit be the this the due roughly the difference

Experis way that. So really up the because some in projects we'll a their the not in confidence the IT talent to we play lot staffing up, into overall, pick and a see RPO changed start way. this it recovery commercial past. and Companies that pick will the enough permanent start a others to been for client would future, seen out but in start start the means get in significant same in That up. to expect we've to like would activities have and companies, of see we then pick acquisition perm hiring

constrained in skill which our us a we human think sets, a demographics is many get in customers basis. sets will thing, in terms and markets contingent to aging to have not changing companies our I the the overall brands and to positive permanent demand which capital access more is as as population, on to labor retain well also we skill but think is terms structurally the just effect many, and broadly highest on George, will more due a of that become of to, on The one rely difficult, going talent to both and and means used all more attract the

demand well we've the hope on our cycles, and that and based holding we trends is the across seen some how technological whole. and board structural support have the would for different at total for as skill that all levels, other we that staffing at seeing look good evolution, and but will by changes we margins they're from sets frankly, margin a demographically, what And today up in margin further give that staffing that we're margin driven skill new us and

Operator

next question Our with Kartik Research. from comes Mehta Northcoast

Jonas Prising

Kartik back come You might having are on Maybe be difficulty. mute Kartik. Mehta. He we'll to

Operator

question Barclays. comes Manav with next Patnaik from Our

Princy Thomas

your India there? your progress profitability And Last for you margin Can and and you exposures on revenue levels markets? mix, quarter, and expand impacts were specifically you from your some client update on an those good seeing impact changes? mentioned that around mix in Australia Thomas this give in Manav. rebalancing mix-related Princy and changes these how us is This

John McGinnis

Sure, Princy.

dramatic there takeaway of QX. really the is lot main think a I changes wasn't in

making I ongoing think key margin but adjustment an right. us, market a India a important been you're in been is certainly That's tough certain market. for very we've markets. it's

organization really the accretive taking And want regard. to that, that of the we're progress result make we're right on a sure that's in overall. good as business So to we making

year, and QX I'd And So the as doing the has say that. job that on really in we business repositioning nice feel expected. been good continued a about this business

in basis. talked lot we've country margin a an market about another other the has the been overall on the past say I'd U.K. and that tough

of lot have that operating job market, a experience of as We nice and really done business we've well. a in tremendous the profile margin that repositioning

trends So very despite the the conditions for the you saw and difficult U.K.

well in operating on side operating profit that we've and margin. definitely unit environment They're that actually seen. of preserving higher quite nice So the really pressure a job doing

third those. have So are I'd we and bit good little the into probably both progress continued those that about on I'd on of more say quarter a examples say, talked X

Princy Thomas

And remarks Can it. your my Got of Israel in business. exposure for as Israel expect in your follow-up, prepared us? you quantify you activity you mentioned significant that reduction your

Jonas Prising

in is for you for the remarks our that colleagues question. in business my Israeli years. this the is just that XX the we've prepared market leader, business Thank has a -- to and Yes. I mentioned over been spoken been as morning, Israel And and Israel in I've

-- roughly and as families can more you also operation. in are -- a in employees members million And fatally. time impacted we our called have associates and this many in Unfortunately, have $XXX war employees Israel, Israel, imagine, we of to had XX,XXX off missing being it's than has We about have serve.

our in is operation Israel. for a it tough So time

thousands their I very the We volatile companies ManpowerGroup are course, thousands environment, of in we difficult client associates ability still professionally personally providing and can, of and and am well our in and as to at as and them support support uncertain and all a resilience all and their as manage Israel. both

I in to significant this least and us and we the tough it attacks resulting short is term, Israel. term be the in terrorist the impact very impressed in a but sad is difficulties from for the the impact to estimate Israel, medium So region, can I'm tell, to but having operational all at by going what am

Operator

Our with next question Sommer Truist Securities. comes from Tobey

Jasper Bibb

This for is on Jasper Tobey. Bibb

footprint bit branches mean the to might like portfolio how with quite down see and curious a up actions the -- but I past branch network the on restructuring know for branch the you follow future total wanted that recent have changes. over the what your Just come of decade,

Jonas Prising

decade, cautious. very variable, last for we cost, we've in We our it you our helps think, network. of to branch are very going us least the more physical this because digital out, been branch course, bring as down which, at fixed platforms really now, pointed over stable We've becomes our at leveraged significantly less remain but -- I footprint point, to relatively

nothing strategic and some had slowdowns not adjustments We here, slight in to but seeing. sequentially that really reaction the we're

it decline So physical all like largely is manage other to the demand, exactly where centralizing that through keep footprint have our and low-cost today that intend things of areas flexibility. and we in delivery ways, the in our brands more so we

countries be a that delivery the way, for in excess when in a that able so sure we augmenting from the as capabilities delivery demand all geos, making Europe, that's we've that that first in India, up helps in coming be our America, the those have evolution had we centralized capabilities the us dynamic that U.S. last also mile between that and centrally and rebound very occurs. we And can in to really capability ramp in that Latin course, have flex adjust delivery we which, and of also to

we're physical how of about thinking sort is that So now. our footprint right

Jasper Bibb

you 'XX. the a higher the XX.X%, I tax for just one at CVAE a quarter going fourth guess but expectations And benefit to mentioned quick had preliminary also be some then on rate is next bit year. in

'XX? blended XX% high? too a on be about that for would that Or basis, imply would So

John McGinnis

Jasper. Yes. No,

I a of mix say full earnings points. It's the reduction an question. this we improvement about will to right, absolutely the heavily what a being somewhere, driven time basis equal, by in you're to the little it's as of is the a for be countries. be the 'XX XX considered say rate going I CVAE year improvement to it's tune be will the hard an things would said, of from in in all at fair But think because

XX.X the to guided We in the fourth quarter.

somewhere XX%, if think now, a and right to as of you of in that XX.X it's that's I estimate. apply For to going say to neighborhood be wanted that now, reasonable the

on whether certainly reduced should give somewhat at quarter our using that I view that updated now, I'll update the on year-end. an for I'll estimate give is think reasonable. for purposes. rate But fourth change

Operator

next Moore Our comes Stephanie question with Jefferies. from

Stephanie Benjamin Moore

bit. I [ bit. of particular. from are that just U.S., a bit been, wanted the apart Q&A And of in for a you've a everything I'm calling quarter, I slowdown us you potential think are through there to think down? to called fourth U.K. on almost in worst year, are kind stability another set touch given the little purse in through I little ] was the in could see particularly of is you improve that XQ or Or be the start step a that guess, the your hearing seeing I to the behind you for trends any XQ, maybe guess, could from here? talking about of kind they clients France,

comp then now XQ and just the which you're I'm underlying just macro it trends. seasonality, trying to I not sounds triangulate what our seeing to like really year-over-year guess XQ

kind So of any help in like about maybe that. we any first to anything when XQ, change, or terms should help start of you're see hearing quarter from clients

Jonas Prising

why And and they clients don't their they demand how that's conversations long and think with The in will we've this the answer our this Stephanie, take, really that industry. uncertain, level own don't slowing workforces, of and maintaining seen, goes it to flexing they're and really know. I way through they they're the fluctuation in know are our but declines that

along we helping that when the hear Thank you -- look, through sentiment they prepared we that speak clients, the is say, still this on our for navigate with we environment. this mentioned remarks just manageable. So our us still

we're some as primarily forward. plans. slowing which with have we demand, see to to to but outlook, transformation We drive We and great need the your help, adjusting

transition-related of industries. We have and a lot other manufacturing energy activities in

We related technology. have to transformation projects

about going which are are down do, All think our that or unusual really and everything when sentiment to but to clients that of them right get slow you where about. and is not that still things now, we from read right pause need we those you is things now, we're the them we

we the tell by And that optimistic as degree. further own than Jack a maybe larger of is sequential about large, missing to a we're they're stability workforce flexing up areas getting. can the accelerate manageable the course, workforce. doing for said, uncertain some if in seeing in they our of and clarity. a as both they're from They're them would still get it you also with and now, on uptick help. to some their with a the talent that of they their just that Europe for environment seasonal a down how to that That's own is, But need what to some sign, on pattern on and So U.S. describe by workforce. is can whole, holding see you and of talked in positive their but when waiting little I they're bit any this, acquisition And remain

Stephanie Benjamin Moore

-- the Maybe follow-up not just appreciate color. be really second. go. I you're Pacific, you color seeing And Can least Asia the in relatively helpful. little to or a the and East Asia continues my out, talk a super that's bit Actually, No. called resilient Pacific Middle you about at

more that just If be there, could provide bit you a would helpful.

Jonas Prising

very are Pac strong Japan. be in the in many the And Asia are of countries growth. Yes, well. especially performing good And This we've We're consecutive Steph. will other Both the well also regions, being of talked trends. in Asia XXth operation. very very quarter Pac, Latin our and a America Japan of performing about regions seeing

strength So to diversification. they our the speaks are still holding geographic up, and it really of

what business not from like because the can diversification global benefiting growing to diversification, also is are very of So clearly in only X times but see impact a in supply regions. at instrumental geo demographics hearing brand helpful those they chain. from be and overall move forward. we're And And now, that that the we what being seeing, very least, this for still that's continuing we're still that

good So for -- it's to us progression. that see it's very

Operator

JPMorgan. with Andrew Our next from question comes Steinerman

Unknown Analyst

the stepping I front system? on Can comment heard Stephanie suite and give you're update power stand technology us finance for your out an on you in systems. you is office rolling in your how where Andrew. centralizing This

John McGinnis

XX% very, front that Sure, as Stephanie. PowerSuite, of journey we're businesses year. said, in in on a end with I'd That's of Jonas office front the been very good multiyear we're shape. being towards office new the of on our where say terms the of the this through end

technology of good So doing and progress. speak the we're which as to global very and finance is on a pleased about point, office, and lot we making that very your platforms back work

SG&A invest one but progressing more lot when have mentioned infrastructure in I now X in I many we our centralization. taking So more countries. a a as what significant doing are quite cloud-enabled and that's that we the have And revenues I platform. speak office we're new continuing standardization Europe, referred this that the significantly, of over XX% half industry-leading and to office is that's live is and to flight that in Through area we and transformation. the to same on And work We're what of XXXX, and that's cloud-enabled more. have time also significant we're back back believe for we where because in we're of We're second us at we'll do undertaking. down we're the

You significant fourth can our quarter. more expenses, see corporate well. as see way in that the that you'll into and in a

excited We're significant well? very is that think, very where And want I Jonas, progress. that. that we're So as comment you about making do to some on

Jonas Prising

Yes.

think I Stephanie.

it's huge this AI add-ons very of alignment the well. but is for replicate can generating driving see imagine, yield opportunities and as we the applying back our move, data progress of all office And and to that big and about then into common but of across future on, platforms. our For and as functions think can front quickly to you some and a a all the and think insights generate we the and course, first is already all great operations that commonality have technology us, we the us differentiator productivity, strategic global process phase, can

looking is and this into promise on company of heavy we our have it for that has but very of better a of think So a part really and journey generating lot future. for our resource-intensive candidates the clients, value been we now labor-intensive the for X.X and years, the the

Stephanie you, thanks, you. Thank everyone. and Thank

call brings much. so I of year in full fourth for everyone, us January. our Thanks, and third earnings in you of and think Thanks for speaking again look earnings listening the to that for with call forward in all end questions. the quarter. our your We to

Operator

participation. your for you concludes program. Thank the This

may a disconnect. You now Everyone, have great day.

ManpowerGroup (MAN) 19 Oct 232023 Q3 Earnings call transcript