MAN - Earnings call 4 2023 | ManpowerGroup Inc.

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Operator

[Audio Gap]

Regarding reconciliation of non-GAAP measures.

Jonas Prising

Thank you, Greg. 2 weeks ago, I attended the World Economic Forum Annual Meeting in Devils, Switzerland. The themes from the meeting centered on the uncertain outlook for 2024 caused by increasing geopolitical tensions and slowing economic growth in many parts of the world. AI AI are major of entering transformation developments time, many topic accelerated same of with we promise believing a in the was and discussion a with digital accelerating At productivity the growth. holding new era just are of beginning the their at journey. organizations Most AI their are They throughout to adoption responsible committed AI of enterprise.

They skilled maximize truly workforce need its quality infrastructure and data they to know along the with impact.

organization's positive head XX% of in employers AI impact recent on years. own a their finding qualified X XX% data finds next roles talent Our than and to challenges the site count fully top staff will the technology. believe more redefining have And the leverage as training

navigate the transformation digital committed a transition will the to skills significant require a transition are speed choice being to and for scale. at of where We people partner company and

research have data outlook particularly strategic our discussions Looking quarters we outlook in it and until on our our play organizations cautious shows, noncritical projects for tracking large continues the during pausing road and clarity at world and to emerges. investments around remain Employers, annual last out. the teams been postponing and following on few predicting the the clear enterprise real-time with is

first industry no and this impact different. to cycle always Our is of the is the feel economic softening,

have levels markets we of North and spend of demand offerings. their It time, we that those the is is signs regions. As America, permanent of our important stabilization solutions we and note seen most and and lower at and in have seen point in employers at appetite. improving yet This to same activity certain for project services in in seen temporary while lowering any reduce hiring their noticeable inflection Europe haven't

advantage the in current We have need take when to to markets actions maintaining the our taken adjust many talent the it environment happens. of market while cost reduction resources to turnaround we significant

and ensure of that to growth ability improves. positioned for this profitable demand we in confident when are well navigate We are environment kind our

billion, Turning to year-over-year our financial in constant results. The $X.X fourth currency. revenue down X% was quarter,

challenging was EBITDA profit per was Our fourth currency in earnings in LatAm we'll decrease environment diluted share and other diluted staff reported $X.XX decreased Adjusting XX% X.X% million gross was $XX the EBITDA continuation in of and of was services review, representing special EBITA was margin costs, noncash million. $X.XX quarter, charges XX% Adjusted while per basis. on for adjusted margins a year-over-year. Reported for share EBITDA demand saw was solid. the remained for and items, financial which $XXX APME quarter and a geographic quarter, on X.X%. earnings In currency. resilient Losses cover impairment per remained in while and share Europe reported restructuring in margin adjusted challenging basis, an our during the the year-over-year a perspective, constant in a we America the a North environment. From constant

for $X.XX. results Turning for year few full Reported the share year earnings per to the was moments. a

and for $XX.X the was per represented decreased in earnings currency to year and currency adjusted, was of XX%. Revenues As constant reported share million. X% a billion, $X.XX constant decrease $XXX EBITDA

EBITDA constant XX% a year-over-year. adjusted, million, As decrease which $XXX currency was represented

talent as experience are post and they populations ability to can the to trying improve, know execute organization's and their by challenges certain an demographic conditions endemic, the one they be that persistent remains as immune skilled when no not Although predict at of will a shortages. workforce heart hire also business adapt agile and presented difficulties they strategy. Companies remember aging they to grow

the future. and to results to talent in it you by will take obstacles over the market helping Jack are into the on focused detail. turn finding We them I through best today these now in overcome more the

John McGinnis

Jonas. Thanks,

results at Slide constant quarterly high profit in currency the came the to range. guidance end slightly in of midpoint Revenues Gross Going our margin quarter the X. range. in above back fourth of the came on guidance our

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

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

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

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

the to restructuring Reported related per $X.XX was other to losses charge items. EPS which Turning and X. included share goodwill a impairment $X.XX, Slide bridge costs, on noncash

Walking $X.XX, slightly $X.XX. of share EPS results impact shares operational which Excluding weighted due average our included midpoint, was quarter, repurchases a $X.XX. these the stronger costs, positive in lower from our had guidance of adjusted a performance to

A strengthening impact better the during had foreign and that than currency our guidance other to of due was the positive $X.XX quarter and expenses euro the the impact. $X.XX pound a

X% organic by revenue Next, declined the The constant the currency basis, brand Manpower of let's Solutions review brand a an our XX%, the XX%. had Experis declined on brand by line. decline business by quarter. in revenue and Year-over-year, Talent

Solutions, Within trend third from line year-over-year the business a our the quarter. RPO experienced with Talent in revenue decline

right business MSP as growth on volumes certain Management outplacement in experienced margin reduce experienced the declines quarter. lower Our continue activity also quarter revenue higher year-over-year we in to the while revenue

our profit margin gross detail. at Looking in

be contributed Other items point for margins basis point RPO, point within Solutions trends. Right XX.X% Management basis outplacement quarter the Staffing Our in reduction remained contributed contributed transition third activity Town a due continued XX the levels, fourth the Permanent quarter. reduction activity decrease. fourth as including margin shifts at lower strong. solid at resulted in remained improvement stable the points XX basis consistent Talent GP margin in mix XX gross hiring came in to as a with Solutions margin to permanent recruitment, margin of as XX quarter. basis quarter career

profit on gross Moving business by to our line.

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

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

improvement decline in decreased X% profit quarter. basis representing third by gross on from an consolidated a X% currency constant our quarter, the the organic the During slight year-over-year,

Continental $XXX by decline expense Gross and increased decreases Europe. partially slight RPO profit quarter. The in brand by in outplacement profit a year-over-year decline a year-over-year, third the Talent brand Manpower slight XX% the from representing X% the decreased organic slight constant in our in activity. an Management quarter. Gross Experis profit Solutions in from gross a year-over-year, currency decrease currency XX% Reported organic third decline additional representing Our the decreased were million. and quarter decrease was in in from MSP offset XX% constant driven right the quarter, the constant representing year-over-year, third organic the SG&A X% in improvement reported of improvement in XX% currency in

decline our finance X%. shared of technology corporate expected and goodwill back-office reduction and in a costs, leading the on X% constant impairment restructuring phase basis, At lower of sequential from technology centers the enhancements same efficiency functions. basis. This focused our medium- SG&A other the representing functions year-end our across Excluding global to drive was same the items, progression and the our reflects These quarter quarter strategy of organic and cost X% organic service leveraging X% year-over-year improvement currency digitization worldwide at platforms. additional reduction headcount the a actions long-term in third on in reflects on year-over-year resulting time, of through strategic a and productivity expense next investments are

the component $XX SG&A largest changes $XX totaled of underlying consisted decreases Netherlands our represented to Proservia was the market operational decrease billion, further million, million, business basis. Adjusted relates representing of with in declines revenue segment X% related which our of million. prior SG&A fourth of in revenue. wind goodwill $X.X the a of a to constant consolidated as $XX offset of by recent The business, currency the of XX.X% and comprised Revenue currency quarters. cost currency constant The impairment on quarter. in items year a Restructuring Germany. The expenses in down costs in largely percentage XX% period compared the Americas other to quarter experienced

largest was comprising was during $XXX U.S. representing is X.X%. revenues. Americas prior days OUP in XX% year. quarter, the margin million to segment Revenue of was in the the decrease The adjusted, As and million compared country U.S. the adjusted $XX the OUP XX% a segment,

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

OUP adjusted, was margin X%. As

basis Within days MSP XX% quarter same to decline adjusted U.S. the continue MSP the XX% experienced in of a a the ago XX% significant strong year-over-year increases. In for IT the quarter. gross activity, demand to in Revenue hiring of of the quarter. our slight as Manpower the level a business sequentially in expect quarter. in comprised during right in and to third U.S., and revenue basis, XX% as Experis lower business programs was reduce comprised during levels the third same sequential within XX% in the XXXX, the Within U.S. quarter, revenue gross the business during improved XX% smaller outplacement permanent RPO for the Experis the the our adjusted brand decreased of the third quarter. a decrease revenues. comprise pullback brand the the improvement a days the in basis. The profit Management the from profit quarter. a in the the as U.S. on a of lower-margin U.S. an compared contributed profit of Management approximately U.S. we first revenue stable U.S. Experience in XX% XX% Right basis XX% declines in quarter was in revenue from gross year period. from decline. quarter. Down the fourth improvement U.S. third the while decline XX% quarter. decreased decline of we revenue which Manpower ongoing activity quarter on brand U.S. experienced in rate U.S. the decline RPO experienced reflect saw on decline the trend U.S., in we revenues some declines In On in the of an anniversary drove begin overall quarter more fourth from the revenue stable the the This the U.S., Solutions skills in a

comprised revenue in was Revenue Europe decrease XX% representing X% currency. consolidated Europe quarter. a revenue billion, the in in Southern $X.X Southern of constant

in adjusted, the days margin X.X%. France and currency. the decreased revenue was As OUP $XX in quarter quarter was for the X% in XX% million comprised Southern Southern constant segment adjusted Europe and OUP our business of Europe

for the our As OUP in XX%. of France quarter, was $XX decrease business representing adjusted, a million

business of was XXXX revenues quarter. Activity during fourth As softening in adjusted, an further France OUP January a in the slight to date experienced decrease. additional margin X.X%. The indicates

adjusted days constant currency Italy equaled in revenue the $XXX based currency from on decrease slightly a France the We constant on quarter, down quarter quarter fourth in trends. trend in million the estimating of Revenue reflecting X% be trend a are for to activity basis. year-over-year first January the

equaled OUP quarter the adjusted, margin have fourth and As OUP the quarter. to that constant slightly X.X%. We Italy year-over-year revenue estimate also trend currency will a was first $XX million lower in compared

of adjusted Northern on the next After OUP Europe goodwill was million revenue XX% Netherlands of impairment are charges segment the costs by margin represented business, of of XX% Our consolidated million our quarter. decline comprised and in I excluding component and driven X.X%. The our slide. the largest $XXX restructuring in the constant region currency. was discuss Germany, restructuring a which $X in OUP Revenue will

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

third revenues U.K. the slight quarter. improvement constant decline days currency During a the rate of on reflects basis. a the quarter, from This from adjusted decreased XX%

is in in wind We days The expect increased manpower currency to managed year-over-year announced quarter the wind-down costs half one-off the agreed client in down applicable Germany driven concludes the substantially for revenue Proservia in our fourth Proservia business the the trend the quarter, largely having constant of business. terms workers' previously Germany, first XXXX. The costs our and during quarter a recorded business. our complete, adjusted service X% second revenues of councils In restructuring largely impacted similar quarter. with ends in by related compared

and significant discontinued which down our clients off business business, some certain decline this the strengthening In revenue the which Netherlands, first on out in on wind chain-related have in of we discuss XXXX, I first separately carve basis, revenue a Proservia losses, decreased significant final step automotive will from slowdowns. In for drag rate quarter, supply business running decline X% the our guidance. The will half this a operating for and operations adjusted in which Germany a constant isolated expecting of days year-over-year the our activity generate will further are the future. client of the the removes represents We quarter on transition a as production sustained a basis. experienced third we represented currency

impairment the the we previously noncash based our in updated a goodwill market quarters, charge million. impairment and in recent $XX As recorded at deteriorating of year-end referenced, on assessment conditions Netherlands

cash balance growth free In prior Japan actions Middle $XXX million. business continue of organic compared equaled monitor the which comprises quarter. million XX% $XX we with improve outstanding OUP performance first of flat million company and the adjusted $XXX APME Netherlands to to basis. We revenue flow cash in to represented East The year. represented in XX% $XX continued quarter, revenues XX currency was flow sheet. fourth business, our days turn In prior and Revenue market to in in to free consistent various constant to pleased We our million XX% in year. remain X% segment year the segment now the is full in in Japan, compared Japan strong revenue. days segment The profitability. very was constant a down X.X taking quarter. I'll XXXX, closely and quarter, X% $XXX At sales are days. on million. OUP total the the revenue decreased largest In in Asia X.X% million Pacific expect was about to flow cash grew year-end, year-over-year. margin the or the currency $XXX days of

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

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

As under in have million XXXX. of X.X shares December repurchase of share remaining program XX, approved for the August we

debt $X billion. debt total Net cash year-end. Our million million at of and ended $XXX the equaled $XXX year of balance with sheet

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

during the Our unchanged debt quarter. and credit remained facilities

to and lower Europe Nordics. which first utilization our to Next, markets quarter first of such activity for on cautious challenging date, XXXX. in the first the will Based anticipates in forecast in is with include the our quarter bench quarter that and certain in expected the further be continue trends quarter our January the outlook declines as in fourth businesses seasonal

the from the forecast recruitment there per quarter the which in the unfavorable unfavorable of will slide. note currency to impact to anticipates important that to of for $X.XX, It seasonal rate which excludes of of the second quarter. we is be ongoing decrease bottom typically the a of forecasting discontinued and guidance are a also share translation forecasted guidance after $X.XX business With cease Proservia the earnings foreign to Our the $X.XX also sequential earnings levels activity QX permanent said, at that are Germany related is foreign our $X.XX disclosed range in range first the fourth share, currency meaningful to of first also runoff activity. quarter The an per estimates low for includes quarter impact

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

XX%, the runoff which that offsetting tax the lower Excluding of from XXX effect quarter expected to the the tax the on points lower first EBITDA rate discontinued in reflects midpoint. We impact will geographies first current be environment at is margin effective XXXX, mix estimate with be earnings business Proservia for items. down the quarter some the of basis tax projected

French business the begin quarter the current discussed in of a improve, our to rates. be approximately the and earnings begin tax underlying effective year trends. tax expect will last which We rate in the rate incorporates modest lower reduction rate XX.X%, When we geographies tax the lower to XXXX expect as mix business to full to return

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

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

Jonas Prising

you, Jack. Thank

in accelerating and We road business within to services Germany progress have business digitization others our The operations manage and have transformation brands. and sustainable uncertainty and some making business opportunities clients to sectors is business, many economic innovation managed quarter, we in pivot to diversification, a has We public demand in our our efficiencies. to key our drive more The pillars Germany serve geographies other DDI are than we we than offsetting confident position automotive, costs across verticals for and verticals our us in Manpower our taken simplify are taken the is portfolio. margin map growth manufacturing as to across strategy decisive our and markets, pressures simplify and saw it sector success. and plan. Diversification logistics actions some our accelerate Last enabled remain extent our our brand all has strong a we well. diverse of several and of others greater higher improve across as actions our in impacted history Proservia future, solid how

We growing strengthening while strengthen flexibility our the our on-site our is for models also for clients to solutions with revenues. of clients increased relationships we that integrated productivity best our to continue ways teams and in delivery achieved our The demand them. work serve

to client our to meet every and MyPath employability Our focus tech-enabled deliver boost on company skill scale with in India and develop clients, a growth IT in continue IT shortages offshore is with trends. Today, practice same specialized beginning at to Experis academies roles skills needs that creating time, of key talent our delivering including and brand profitability response is areas. To our we're At we the hub manpower improvements resourcing nearshore the varied and to our continue our enterprise talent program, demographic for bolstering services is also as fulfillment. IT our Experience skills talent diversifying in company. solutions,

offerings value brand, development for enterprise clients right our offerings grows, complexity and Tapan of have outsourcing to all Talent breadth XXXX. Talent and key in Solutions our been process global clients. our workforce transformation recruitment acquisition, As as leaders recognized managed be services priorities within the management, provider continue

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our industry technology the our end XXXX, revenues revenues data the great for technology PowerSuite, the be And global work the PowerSuite using Turning cloud-based And and in Substantially, By and of across we're doing proud the all deployment through to pleased globally. that digitization. through global our office our XXXX. of our operations during global were of and the We've be running our made road with will map end we leading office of to office. progress back front are align majority these and XXXX, platforms to platforms. platforms of by the using front web front I'm common

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times great change. During a

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Operator

[Operator Instructions]

with Morgan. first from Steinerman comes question The JP Andrew

Andrew Steinerman

needs GDP seem estradiol market more stock walk that would and Fed likely landing favorably. has does executed, the unemployment and that landing here and that It the soft still Obviously, U.S. will be the in be received rising obviously, slowing to rate.

And note guide. narrow to feel fourth wanted the it as of to about in decline quarter Is effect you the U.S. used comps? does your do that's cautious, the you I only quarter. revenue year-over-year word Or about well? year-over-year but talking more first a know the only about landing include compared soft I the So that like I'm a U.S. the early

Jonas Prising

we've seen, a including seen Andrew, I'd U.S., because that markets, remarks, reflects I stabilization. quarter in the guide our we've what number our prepared and first of this in mentioned say both

level In as for lower well the various the perm. terms our at trend offerings our as for of brands such as

us the first carries stabilization course, that comparable lessens. the quarter, decline, into that and of So means through

So that's the seeing you're why improvement.

sequential stabilization other across brands and number and So the comps also the of in countries that well. do play fact seeing we're offerings role, U.S. a but a as

Andrew Steinerman

say just in would about little a bit more business? U.S. U.S. soft the Manpower's affect how you a Could landing

Jonas Prising

happens, upturn of that confidence of as could in U.S. yet landing not course, see and across inflection of that improves, we our I is will is, an will be biggest Well, for US inflection to that if very would, but services that clearly we our course and employer prepared And a seeing broadly mean reach all in then welcome. point mentioned economy soft we that our the when our demand the think we see the the improves what difference drive -- will that brands. business it remarks, be in welcome point

Operator

with The comes next from Silber BMO. Jeff question

Jeffrey Silber

Just from that follow-up a either But again Obviously, moving question. or business will little your a about take thing there region? same ask think do Maybe trends you economy I moving the again if bit can get in weaker. Andrew's Europe. are to that what

Jonas Prising

lack Jeff. Yes, just that seen trends the But as Europe of Eurozone in they economic you think this costs might are from are energy clear QX. headwinds Europe uncertain environment growth of clients weaker. manageable. higher morning, to is I across they have government the what consider a for growth But some tough, noticeably And less but no stimulus. the environment declared economic speaking is the in the behind outlook the reasons

they as not look seeing improves. but the they clearly we into the XXXX. And expect a outlook So us are economy we're they constructive to upturn still yet, improve have telling things as

see reflected actually economic but still Europe our the is an and we If a relatively economic I Netherlands growth think particular, Northern Italy strong pain little France just then and of business. And the we can that Europe other of clear headwinds faces in it's in and parts Europe you bit softer, at as Northern well, economic distribution being Scandinavia, where have the greatest, [indiscernible] major with look getting and Spain perspective. Southern from and that

which and growth, that sooner we could the also back quicker U.S. a landing, than of could Europe think all mean say, of this in come as is the to So Europe softer economic about potentially. U.S. terms lagging

that on major that, to geopolitical we and step So a down so to hard Other like into the today They they outlook serve, will. likelihood that constructed don't appears events companies know events than recovering we of when. Black Swan very just related look to it their predict. as are be we the is talk believe to a more focused out economy,

Jeffrey Silber

helpful. billing of could and is rates you every I'd what's in high-level I more spreads. going terms different, if broadly go color give it. some us talk we and there, That's Okay. region about appreciate If I but on know can

John McGinnis

the talk very, in. I what Jeff, sure, Jack. we're much very talk specific this I'd due mean you is we the what But markets that. be more happy since to is and Yes, I'll in this holding GP staffing to is rates publish to well. don't saw major say, of generally aligns very billing would up I to walk margin number

staffing bill the side, and of stable in on for I'd say rates. terms that's coming fourth through seeing we're So stable overall quarter. margins pretty the

as you first And expect continue. to about our think quarter, the guide into that we

Our to see the the margin expect more say reflect seeing more on a far, I'd would more in rates and spreads We guide the through after sickness of on does gross January. Nothing But Northern Europe. we pressure be side, an have do a utilization. little say we profit staffing get we're a really that's But concern on up some are quite been bill little and in the based margin countries what a resilient. that in first so as the first quarter. and would we are expect actually do but holding impact little bit, bench

Operator

next The with from question UBS. Chan comes Josh

Joshua Chan

much how margin is what the that of I QX, into talk QX to in transpired over related. on expected to margins. of from than of QX, And seasonality? front? or you first is demand anything much sequential decline change margin how guess you the is just on QX question structural better typical reflective And slightly about Could if normal you roll be my then

John McGinnis

Yes. to happy Sure. talk that. I'd to be

our France margin a France range, bit better. was The that, of end We we in year-over-year in higher explain did a bit saw looked So came way great. cautious I the would But which you the quarter. a at we and margin. generally, say of at come had fourth yes, the as bridge in guide, we did the GP on guide that on the

higher of in came I'd levels we were to France came at the staffing in a France activity came what a in margin margin through, very year-over-year better close which helped So expecting. and those bit higher bit. And say perm

in year-over-year? peak on to to quarters know you the minus on you're impact see XX starting we points you that impact previous see to quarter year-over-year expectations, basis and last QX, lesser us question I minus see, on anniversary GP inquired what in and look a your to perm perm did having this go on You So at QX that the -- is trend. continue margin

look expect in staffing It So a pressure at that million will into margin for to be QX reflects on quarter. decline really, continued you margins, gross trend a first some little the the And stable we that at utilization as Northern profit less the continue. would with that year-over-year issues. as mentioned, $XX.X midpoint, Europe I at

talked and look would typically smallest QX. firm stable hit that is I with all isolated the prepared as And a and I impact is, remarks, they our mentioned continues But some levels, we at my well other trends QX as item margin I think at the about. when bit sequentially QX get as activity you by it say seasonal in quarter from into that's

I'd the as are say GP So that's -- think margin. those main about you considerations

Joshua Chan

how through could in just comment business. Jan ramp then the you're really and you Usually, ramp-up of seasonal next X That's on on kind the U.S., of helpful. in seeing progresses Okay. staffing you months. the couple the starting And up

pace the much And QX have finer would on QX, comment you Americas be the any would versus color if can how then that ramp-up on normal? in versus any of just be helpful. So that better declined

Jonas Prising

in I'll part and Jack part. on Josh, first the have -- question, your of the So second I'll jump question take then

and the Canada slower seeing is expect, expect of bit little which year than given ramp you headwinds see normally U.S. across the So in a the the we're Europe economic would that surprising beginning the not and is specifically. that seasonal we to

bit it's So in little and a our slower. incorporated guide is it

course, right what Of change, quarter, in seeing we're early this so all now. but we're may the that's

John McGinnis

on guide And for question your say Josh, just the QX. I would Americas the on for

of XX% in stable second QX. And days of U.S. So what you Americas at at North overall can between see minus at see for completed consistent half pretty midpoint U.S., in currency. means adjusted Latin down and in levels the Breaking America X% that that that the really we the just down constant a the trend pretty America, and activity levels. lower QX XXXX,

walk relatively takeaway U.S. year-over-year But up to quarter. But a a activity as into very the perspective, that is Canada. a but part in comparable the QX, similar came margin been Canada, prior is We high not very first talk dissimilar U.S. from and market step has been of where earlier, well. again, I think for remain will seeing means the the that the year the down decline stable. on we what experiencing perspective, declines, improving. big I'd we've it's well from the did As don't performing levels single-digit be say And main about this a but in U.S. lot Canada

-- consistent continues half and the that's America into do So pretty in to the very And then Latin second and well. of first quarter. the year

good from quarter we overall. anticipate has the that's So America the a X minus anticipate will go back for been region And growth. environment to Again, first Latin quite a only good driving Latin see in growth be that the quarter. perspective. we well. It's America revenue what's for And double-digit performing to fourth Mexico

Operator

The with next Mark Baird. from question comes Marcon

Mark Marcon

was perm, running wondering, of with is I at? perm percentage what to currently GP regards

John McGinnis

that. XX.X%. Last thanks quarter as little is that at reflects has on I million. stepped stabilization. know was think it last quarter, the for I currently a down bit. And this you Mark, about $XX.X Yes. continued And Perm well. It just inquired

year-over-year of just seeing we're in I was think its And work kind year-over-year, the perm decline about that same. in. the way rate

commented reflects last So that I think and well. I on quarter a -- bit little this we think as

with in were range we a that's reflects that think pre-pandemic. I where line

So mix GP bit of our is basis. perm overall of a typical has on more and stabilized quite an a

Mark Marcon

And of as what efficiency place, a -- you be? a being think unwinding Proservia more that initiatives have could we've number updates of as -- got regards things about with we got we out, the say, any got put German with of place. X including the you wondering, We've then, deployment of do Jonas, regards manpower go in That's efficient I'm like a year in the much how all business you initiatives to that you've equal. And new suite. AI now, up place. to mentioned initiatives from Power margins, end then number in How to great. would months some doing

John McGinnis

in think yes, forward wind with question Mark, the profitability major specifically. your Proservia And step of that, Germany start is on a of improving I'll down was So It I the Germany. the conducted. down. that. substantially that I actions concluded way was to we've as the a happy prepared related in We're with one-off very And very mentioned remarks, complex our wind all

So markets. my question, don't where client outside answer we the what next profitability to disclose just I Proservia the now first out the first will guide, down say, we quarter. we're runoff contracts of through my directionally do is are to your of But for guide, final carve major I half the impact year. of runoff in In the

So include I XX you were said the on that, points it. margin that's to about basis if

million of that for If the at indicate math, midpoint you the would $X business. loss that a about do

think run I be a quarter, bit rate. directionally, an from will the runoff that of that will gives and of So that second removed idea the after you

the we that will impact in get improving have of so a significant midpoint Germany's And to once profitability XXXX.

the the So an of very half we the in very you've bit of the growth on from be year. that as a made us seen revenue good And progress good feel manpower rates about it Germany the you of we've improvement. second little will side, gives the and for in idea

Jonas Prising

is about DDI. to And Mark, good a probably point talk the efficiencies. bit A starting

progress. some about we remarks So prepared I been excellent our and has diversification And resilient, made and higher-margin GP think our our into improving our move that between is we've in margin mix as see. really our all within that's brands great noted so margin to we've strategy And businesses.

the X we're business have this front our will platforms our at we our mix well for office through by all from deploying brands. The run of within we've I year, of digitization And industry and on are big and course, now of of the that working office end of the revenues brands between improving some because for the implementing almost comes, as operations. And common remarks, the mentioned last the prepared now our us established substantially back years really forefront front as in And an platforms. been and as vet global efforts properties. same that a web

about AI so that's new in is be we number which for areas to that promising to And been look able excited country, that and immensely drive mentioned productivity I speed that's we can these in initiatives really that clearly, remarks, at we've rates speed years. drive advantage of the in only even successful and take because prepared of do as exactly across to never a our efficiencies modern technologies, a also take implement But scale building never recruiter infrastructure. it and things that it now there more new what during I've not learned one productivity way a a recruiters to means that think best that and those as to have tools and we're but fill where able been before. become support way that many general in transfer AI, is before. But of and technology to we up requirement in each we particular, we are also we're a productive my have do implement able geographies can we to and what course, scale the advantage to And practices in as and generative of of relates improve

global we're about So AI about to market improvements across talk feel time, all a large as think is we of and ahead on because the our good deploy into advantage But take we those of language promise is positioned it's where them what we global as to look organization come that and can exactly at working we the they immensely have platform they future. same the exciting, of how and too models early generative are now. we impact we the to hold very

Mark Marcon

lots the the at you point well to You that that clients your obviously impacted you get in to U.S. people. But constraints economic obviously in environment And occurring while this then How at were as talk geopolitically there's you're European leaders own might mentioned about unfolding of Europe thinking what's supply by And be for there are year? time? terms softness period Fuel of there it your it you've sense general that lags and this might when as the stabilizing? far in chain as along feel the worse getting know we got just to inflection occur. in inflection? we is this when an are then what's -- of be prices or hesitant how continue high, and does of farmers are I -- to it's like see could But evolving. How it you're terms say doubles,

Jonas Prising

exists pandemic chain the out if think consuming during back with you strong. post pandemic. have coming prices about supply the remain they the getting they the are in primarily and pipeline a it the uncertainty But step ahead, the came and to Well, what their in, down. they end 'XX, note supply and shortages And markets as all think inventories constructive you're quite stabilized. news chain services which they've in Inflation normalized after been supply that on due that working see have start Mark. look because could on and tremendous to actually all and I and of the that companies geopolitical way I We depends 'XX been events 'XX pandemic. is but the issues country and of functioning Energy a anything largely and get they ordering sometime normal chain encouraging. Labor outlook products to economic return they've they through on happened are

an quite with from economic of for could leaders perspective, spoke that's control. the many out, terms know So as European business that look XXXX. They outlook you we impact of in geopolitical their that, but upbeat they uncertainties nothing we're

are down. don't And thinking they know are when when interest to we very know see an that about the be ready they elements come of That's getting recovery. things sense. number is tough. Challenging control, they holding, it's for going then, industries, are know there. don't the probably rates But felt but of headwinds but they're overall, until 'XX, waiting, constructive they within the this but going my can they're improving environment much that in to So is recovery are they the a

Operator

next comes Mehta Northcoast from The Research. question Kartik with

Kartik Mehta

bill statement holding wanted about to you rate I spreads stable. fairly to Jack, go and back a then made

an all that's on accurate what's considering And up. assuming competition if revenue And competition hasn't going hasn't picked are I'm you trends statement, surprised that picked so at up? with

John McGinnis

labor really, hard Kartik, it's of market is all to as quality earlier the that, result, It's you labor on say workers. if been still the to market resilient. a at would relatively Jonas' relatively to the I still is Well, look incredibly tight. comments, get this backdrop And

are are degree -- relatively well, markets. the lot isn't European And are seeing are that's markets stronger So I down, of that I'd pay, holding margins some as a continue is where the reason. Even seeing terms would backdrop that same of and of And demand of and to a for tight, to bill of markets of broad as America markets. has think there in I brush. There we holding a the still said, are. been in staffing pressure labor to they margins I being part our been clients positive that's demand the actually it equation not think, rates been willing in of we're say certain have though that say, some stable the big North

really the fair to countries, the you you that's aren't at markets been down ask, bigger seeing If you really up why holding if where markets low a take single is why pressure? But question the more quite that it's labor Italy little it's think seeing So those step I digits, right? you a well. look declines the think reason a in it look you're at and only markets I like back in

Kartik Mehta

as perspective, your that the least business? the Management. unit's And wondering then more get in -- force. of their Right to just you We're companies I'm labor at more in I wanted And your headlines, -- outlook perspective on layoffs, rightsizing here kind

Jonas Prising

put we're services think, I what I need but of for that think we of an seen to overall. within demand Right increased seeing context have the employers what is Management, doing the we

that not their are companies some the now their you resize in industry they seen are the workforce. are this and workforce are reduction other other on as organizations what is but employer for look would into tech estimating demand is see to accelerated and their an quarter, any And labor attitude been and felt indicators still now good those that into also management stronger and we touch for flexibility And continue really we're most 'XX the large resources, market would for we'll to -- offerings. And right tech for hold you've indicate demand opposed by our economic -- workforce. workforces, whilst has first for employers various do for that But wait still back, large that workforce. Clearly, by to much conditions of workforces So indicate trimming the doesn't company, on preparing to our growth employer the layoffs confidence come have Right and to workforce trimming reasons. as larger-scale increase and holding a Management. their specific to mostly enterprise early their that in

So that's how we would think it. about

Operator

The with comes next from Barclays. Patnaik Manav question

Manav Patnaik

soft guys? a more things permanent along line. guess, because the what landing same is overgeneralization, is to hiring activity there's I then an still there's moderating, job that suppose U.S., and environment, So in Apologies if the Europe, be of And temps worse, in you for perhaps than that. perfect not I growth seem but this is

is. bad just permanent? mix that appreciate is tempo to hiring there's trying what right the So Just that no

Jonas Prising

our services, environment that for we I other at solutions about an have But for is our when demand booming. perfect is for global similar But would not think cycle say, is looking us cycles is is in services for to the seen. increasingly case Manav, least. the that Well, economic and industry many moment, this that our the we demand this

still the recession. LatAm a enterprise is talent context drop perspective particular, applies bringing industry in much As is being lessening in what in in parts the But context seen consultants others Europe, temporary same from as more a lighter they're across with soft softer a in we've cautious of market demand our deliberate, specializations a have. people. well within labor temporary realms are for more and strong recruitment and is Yes, sectors. just in of But as landing within of that in for skills historical absorbing from a much or hiring thing kind say. precise our overall, in staffing other and Asia economy, companies say client quarters an both call, demand whilst perm for Pacific, stabilization They see are of geographically there much That's the what of still IT can they demand, that -- staffing. to number a Experis we're the and more in in. And there it's that now last and certain you taking of whether means a of discussed we a seeing, the this our still earnings quarter I'd

across and point in own solutions reduced, confident, in what employers not recovery moves outlook. our brands. into or able be recoveries, in when teams big when up the need be acquisitions, capacity to as is strategy. of companies, upwards talent business but they either to workforce an past gone and to is lot confident that believe services their their our a ramp continue see the execute is going So more and when caution employer we've a And to because we prepare turning to move improved we seen and reducing important additional fully in of are compete demand employers need are course, to are an time their they hiring, the confidence means for

feel you overall in -- we the see point But see well as more and can Right it's is manageable, in are And and business, Europe. we it confident now, U.S. that's think get both in cautious. more that's, I when are. the our in have when employers they our turning numbers. They here, as think, where will they they that

Manav Patnaik

businesses? do decide of need you economic point like cycle common what to than lot then those And economic Got and that get businesses mean, it. you whatever, you've and of as like is described, in of in a decide kind just is to follow-up. as Germany, an decision? quick like what lead Proservia or given you at you that is when do the Like Netherlands I a review your the this, how cycle, just more of are -- more out traits some you

Jonas Prising

turn that Germany one-off issues with specific over client. really of a think but And economy change, German we a feel have to and this that of ran number saw to it business proven the that is for make is, at which being then it with took Proservia be state time very us a what in very around. And the doing. I we've we situation from to we within feel you for the us that business years, example it's Well, point is difficult a well structural significant a unique and

The other also strategies. aspect the it's noncore our Proservia of to business,

situation compete a about do is the level. It's unique a situation -- we made market. not that's at really adjustment. and that in German felt overall, we in this a and as time to was good good really that time we to over this just make expect and well But Netherlands the expect feel Germany, where So in it all Netherlands at The market the that's change. struggling why on and we same is

Operator

Sommer Tobey question with The from Securities. Truist comes next

Tobey Sommer

and for internal you're seeing touch and you what have for might terms capacity a wanted in by to historic I on as -- not recovery? something normal recruiting in that heard own their about We've mentioned. that customers perm what general, for Could at may in large much you slowdowns. reduced capacity just recruiting in internal terms talk example, demand companies, of as imply be staffing,

Jonas Prising

different we're I other have doing many a reallocated. what And team, sectors, have of lot look going Toby, at left there's individuals those are functions is the as and/or hearing that not on think X since in you been things. hiring and

our need of as back asking clearly but not services. our and or products and opportunities about conversations customers that it within coming an their they are prepare, in upturn the for be for ready Many are to they market So ready the RPO. relates doing instance, confident to us are the are getting to our thinking recovery pull they trigger what they yet, when is for to,

back to expect and as that across in is industry here same the the more the out as less both or So and frankly. concerned, bounce play way we've world, seen this the U.S. we far returns other really

Tobey Sommer

Okay.

like internal the in vertical being you staffing domestic So are drawn Tech? it financial on if including tech, is What sounds In corporation capacity particular, you down. experiencing Great. wondering a could demand? in comment IT was I Global services recruiting

Jonas Prising

stabilization up because down the As skill tech. a there prevalent lower mentioned enterprise than are ago, tech, actually in at really better we've of shortage is and the level. still we hold they from in holding And then couple market. came seen that significantly first calls much what are clients better a of is Convenience enterprise the

looking has improve demand a So stabilized manageable bit at quarter. characterize overall level, feeling convenience than I banking I sector for and tech is headwind, and now lower first slightly for for in it the stable sequentially the the would outlook large but the a Experis to say enterprise more as you better our the would saw U.S. is into organization finance

Operator

question from Next Trevor Blair. Romeo William with comes

Unknown Analyst

but get spot. the consistent. lost and been on which has real on shuffle focus bright it's bit a there Just I all performance been Europe, The Japan, one strong might a in the maybe given think

have could near kind So drivers there in Japan, the you just strength the in maybe term? outlook what of the talk about there you behind

Jonas Prising

a and managed to strong in has consecutive really for demographically labor, where struggling capabilities. But and brand. that the a a ourselves of we've excellent Japan a that very I up, Japan. upskilling Manpower of And bringing and It's a that both of And delivery at factors thanks example also but Trevor. scale. the each from position the experts has key really arm finding in recruitment that's we've in how creating Japan and course, one is brands XXth been of Well, really and growth made interesting of is, reskilling Experis as quarter is country think shortage of of talent progress of our perspective

Japan. the population, So a given years, been to think aging our and and And part that lot in we've that very scale really the we in care over will childcare as hold. And be care interesting we've starting see generating main to talent a And with made as is investment as Japan. good moved into We've health seen. of an that some continue progress elder factor of that's opportunity, skills that an take we a are well a that we important is number and marketable of also areas, business. that of

in our Europe ability great are making well out and to but also the create clients, the which through academy talent best our as workforce our as that only not similar finding at as in an manpower as and being in speed. a aging market and demographic, an job seen known do has trends we done sure find, shrinking programs need excellent that helps the team by to we in the talent solutions that Japan great So really you intend talent company U.S. provider exist a the exactly to both as scale. And a Experis the opportunities deliver talent that's for where finding at us the see but market MyPath in the has what have and in we play in time creating

John McGinnis

for that adjusted, the digits Japan digits, high Japan, has very to double just would days quarter quarter, about say at And closer running we for to Trevor, I for the maybe high first days and guide single-digit the just anticipate been single first adjusted.

very strong the Japan. first So outlook for for quarter

Unknown Analyst

this macro sluggish do of additional be just room headcount you you it additional took do much cost reductions where quarter, kind Okay. reductions, you great. for like then or It management. That's quickly terms SG&A. think you have in And guess continues? the sounds headcount on you some I other think are of of how whether avenues

John McGinnis

quickly. happy to be talk very to that I'd Sure.

count head about we've feel actions cost. additional taken. of we personnel did the are about our overall think we I So about -- the good talked X/X We down costs

down moved X% the end we We X%. as in the year, down So quarter. fourth we're another

I a here. But the feel necessary we and change that. continuing we talked the for Proservia the balance we've conclude So pretty lot to for the improving trend on we good, about Certainly, time, most we've but once that think I actions same based feel business. in taken current the that think the environment. part the at Germany

when want be upturn the prepared as we So it said, for Jonas happens. to

So it's the a sales when sure that we for and make the we balance, and have want personnel to happens. right producers right

trend in continue quarter on did additional that into see cost balancing we're so you but fourth trending takeout basis. first the expect carefully, And a we that quarter, and the to

Operator

comes America. question Balsky The next from Bank Heather with of

Heather Balsky

with of on see curious about talked little You elaborate you the Q&A U.S., which if kind at the a the first And beyond in further the bit like question signs we of Is the now? is stabilization. right Is you some get markets through data you're customers? in stabilizing business given Just all to of -- stabilized. that process. to the can have from challenges then U.S. you're looking your and get you're underlying January? color the what things helpful more in feel that Is thought I'm out confidence hearing your it macro what things the just what seeing there?

John McGinnis

I'll quickly. very talk to Sure. Heather, that

is you're the half that the second -- year. stabilize We So our did second right. in I business. biggest U.S. of see think

XX% other U.K. to one, the went is from the for #X QX. big minus business us adjusted XX% minus think in U.K. days I

stabilization. seeing improvement, slight So underlying

the into We to continue quarter. expect that guide on we that first gave the based

the bigger further on bit I a going quarter, we've the And in XXXX. the second the that would into and of I'd that will as say I'd in good same camp activity stabilization France are Italy, seen levels ones So those modest. first decline of but half big X be quite not markets, say, say little very

seeing So we're not talking easing. markets, those significant pullbacks about more gradual seeing we're

into so quarter And in the little adjusted first well. the X to decline minus bit takes a minus guide moves QX that of minus in our from as days a to -- Italy, France that that's X bigger from X% in

when And countries of at main then look of of data about type the think we was I question countries think to are what good part be point, the I to in. stabilization those would second So potentially changing. that monitor as bigger your we're your points the

businesses, manpower I demand. terms manufacturing good a in of think the are on PMIs always pretty read-through

that. I'd say look so And to at continuing

quite here be range, to XX% in sit the well. XX% XX% we as today, the continues As the to so below in U.S. Europe

And side, say come to really then So IT important. restarting and it's spend. to on the with is down that confidence employer on professional earlier going related think I'd comments I projects Jonas'

to and going of elimination those into moving that's So projects come forward. deferring scheduling moving projects down to more

So on be more players predicated you rates into economy to that environment. mentioned confidence that overall of and and give the factors a based some and as other the -- interest events earlier, we're moving going in that's predictable

Heather Balsky

just And Is customers that in have curious, Panama That's attention as just what's still at paying Canal. Red the I'm talking a of helpful. any all? is your question, and concern? to going there Or BofA too on Sea something started where follow-up early? it's about sense is it

Jonas Prising

bit Overall, I from in our the so of that [indiscernible] automotive and and There Heather. that it's right publicized well early but have I been impact. think a still, But is the bit some perspective, circumstances -- still early. other known, well may primarily, industry. Germany, And that, a , have case, we'll little have that in than around an it's

Operator

George We question Goldman from take Tong last Sachs. with will our

Keen Fai Tong

based The your in widening on you talked XQ, softening you currency regions amount in Europe Europe seen relative business U.S. far so guide trends incremental the revenue? on revenue elaborate constant in most midpoint weaker of points to can about decline, you've are seeing the of of to which trends in economic rate a and

John McGinnis

to be I'd that. to George, Yes, talk happy

So down I a QX. a basis, from minus we say you're right. On days constant QX minus But do are big step in in currency X% factor to X%. would

adjust actually So billing to very same running we're when days, for trend. you close the

But So there at at days also X% that, point. puts to minus were days in and in your we takes adjusted X% adjusted, are QX. And minus in QX. we're organic

the decline to largely So anniversary similar of say, And a a activity talked ago, about the to look I and would improves start little say of the down I is relatively would levels QX. in bit fact rate due it levels the way that a U.K., in France you at as similar, Italy U.S., we've pressure I into year activity QX, more the would step a stable. earlier, into

offset you currency, you adjusted organic that line if against overall with constant LatAm, an days we kind completed. trends what and of favorable APME think just in gets I in that to

area where that Northern the then on earlier But we QX. to pressure talked So of and seeing a and we And progression I'd the the Netherlands about puts on of a the bit the that's more rundown the say bit call. is talked in QX Nordics a we're little takes. other that Europe market from about in

Keen Fai Tong

mentioned, Got elements when are difficult about What it. And when are to happen it's inflect? inflection how revenue. with the That's will margins potentially an pinpoint do think there, operating helpful. you you will

John McGinnis

revenue the in say I trend. Yes. line very much would with

done feel a second We in margin that, half of through way in forward 'XX. on its lot we've that's go work as preserving good cost actions to think I So here. we the of work going

talked global to you RPO again, us way, business you'll hiring the Perm activity. The inflection see going have we accordingly operational As will clients. expand more comes news business, commence continue see that. RPO that When think revenue, the expect very would with about demand requisitions programs on that when those see is a surge into EBITDA we to We see our back leverage occurs. be strong about equation. we is margins recommence, and as And RPO in a the we'll when to good -- points in part of bigger hiring

forward. in as would we I line So say moving much revenue very with move trends

Jonas Prising

brings all you of fourth Thanks, for us our That report everyone. forward Until the first Thanks, look we call quarter sometime May. again our results to earnings everyone. to with in end as quarter. of the We speaking then.

Operator

concludes This participating. call. conference today's Thank for you

now You disconnect. may

ManpowerGroup (MAN) 30 Jan 242023 Q4 Earnings call transcript