Manpower 3Q loss widens as labor markets stay weak

posted: 35 DAYS 8 HOURS AGO

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MILWAUKEE -Manpower Inc. on Wednesday reported a wider third-quarter loss as labor markets continued to shrink. The Milwaukee-based staffing company also predicted fourth-quarter earnings below analyst estimates.

The announcements sent shares of Manpower tumbling $5.99, or 9.9 percent, to $54.76 in morning trading.

Manpower posted a quarterly loss of $50.4 million, or 64 cents per share, compared with a loss of $43.2 million, or 55 cents per share, in the third quarter of 2008.

The latest quarter's results were reduced by 84 cents per share by a loss on the sale of an equity investment and a goodwill impairment charge. The results also included a charge of 6 cents per share, related to repaying a loan and extinguishing an interest rate swap agreement in October.

Excluding the charges, third-quarter earnings would have been 26 cents per share, Manpower said.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 17 cents per share. Analyst estimates typically exclude one-time items.

Revenue of $4.19 billion for the quarter ended Sept. 30 was down 26 percent from $5.67 billion the year-ago period. Analysts predicted revenue of $3.95 billion.

Jeffrey A. Joerres, chairman and CEO, said Manpower continued to experience sluggish demand as global labor markets "were hampered by lack of demand for companies' products and services."

For the fourth quarter, Manpower said it expects to earn between 17 cents per share and 27 cents per share.

Analysts forecast fourth-quarter income of 28 cents per share.

Manpower shares have ranged from $22.60 to $63 over the past year.

2009-10-21 10:50:27