Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 8-K

 


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2007

 


MANPOWER INC.

(Exact name of registrant as specified in its charter)

 


 

Wisconsin   1-10686   39-1672779

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

 

5301 North Ironwood Road  
Milwaukee, Wisconsin   53217
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (414) 961-1000

 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.02 Results of Operations and Financial Condition

On January 30, 2007, we issued a press release announcing our results of operations for the three months and year ended December 31, 2006. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Reflected in our earnings for the three months and year ended December 31, 2006 are three items that require us to revise previously reported financial results. First, we have income from discontinued operations, primarily related to the sales of our Nordic payroll processing and facilities management services businesses. Second, our French business tax and profit sharing expenses, previously reported as Selling and administrative expenses, are now reported as Cost of services as we believe this presentation is more appropriate given the nature of these costs. Third, certain Eastern European subsidiaries previously reported in our France segment, and our Russian operations previously reported in our Other Operations segment, are now reported in our EMEA segment due to a change in the management structure. Attached hereto as Exhibit 99.3 are our Results of Operations and Operating Unit Results since January 1, 2004, reflecting the restatement of our financial results to exclude the earnings of the discontinued operations and reflecting the reclassification of the business tax and profit sharing expenses and the segment results.

Item 9.01. Exhibits.

 

Exhibit No.  

Description

99.1   Press Release dated January 30, 2007
99.2   Presentation materials for January 30, 2007 conference call
99.3   Results of Operations and Operating Unit Results reflecting the restatement for discontinued operations and reclassification of certain expenses and segment results.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  MANPOWER INC.
Dated: January 30, 2007   By:  

/s/ Michael J. Van Handel

   

Michael J. Van Handel

Executive Vice President,

Chief Financial Officer and Secretary


EXHIBIT INDEX

 

Exhibit No.  

Description

99.1   Press Release dated January 30, 2007
99.2   Presentation materials for January 30, 2007 conference call
99.3   Results of Operations and Operating Unit Results reflecting the restatement for discontinued operations and reclassification of certain expenses and segment results.
Press Release

Exhibit 99.1

[MANPOWER logo]

 

FOR IMMEDIATE RELEASE    Contact:
   Mike Van Handel
   Manpower Inc.
   +1.414.906.6305
   michael.vanhandel@manpower.com

Manpower Reports 4th Quarter and Full-Year 2006 Results

MILWAUKEE, WI, USA, January 30, 2007 – Manpower Inc. (NYSE: MAN) today reported that net earnings per diluted share for the three months ended December 31, 2006 increased 88 percent to $1.90 from $1.01 in the prior year period. Net earnings in the quarter increased to $164.4 million from $89.1 million a year earlier. Revenues for the fourth quarter totaled $4.7 billion, an increase of 16 percent from the year-earlier period, or an increase of 9 percent in constant currency.

Included in the fourth quarter results is net income from discontinued operations, primarily related to the sale of our Nordic facility management services, of $64.8 million or 75 cents per diluted share. Net earnings per diluted share from continuing operations in the fourth quarter were $1.15, an increase of 15 percent. Included in net earnings from continuing operations are severance costs related to Right Management of $6.9 million ($5.4 million net of income taxes or 6 cents per diluted share). Additionally, results from continuing operations in the fourth quarter were favorably impacted by 6 cents as foreign currencies were relatively stronger compared to the prior year period.

Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, “Manpower performed extremely well in the fourth quarter and for the full year. 2006 was a pivotal year for us as we executed very well to affect the present, and laid the groundwork for outstanding performance in the future. Our continued growth in Europe, emerging markets and our specialty service lines will fuel solid growth into 2007.

“We are anticipating diluted net earnings per share for the first quarter of 2007 to be in the range of 57 to 61 cents. This includes an estimated favorable currency impact of 4 cents per diluted share.”

Net earnings per diluted share for the year ended December 31, 2006 were $4.54, an increase of 58 percent from $2.87 per diluted share in 2005. Net earnings were $398.0 million compared to $260.1 million in the prior year. Revenues for the year were $17.6 billion, an increase of 11 percent from the prior year, or an increase of 10 percent in constant currency.

Included in the full year 2006 results is net income from discontinued operations, primarily related to the sale of our Swedish payrolling business in the first quarter and our sale of the Nordic facility management services in the fourth quarter, of $92.3 million


or $1.06 per diluted share. Net earnings per diluted share from continuing operations for 2006 were $3.48, an increase of 23 percent. Included in net earnings from continuing operations are charges related to reorganization and a global cost reduction initiative totaling $26.8 million ($18.8 million net of income taxes or 22 cents per diluted share). Additionally, results from continuing operations were favorably impacted by 6 cents due to changes in foreign currencies compared to the prior year.

In conjunction with its fourth quarter earnings release, Manpower will broadcast its conference call live over the Internet on January 30, 2007 at 7:30 a.m. CST (8:30 a.m. EST). Interested parties are invited to listen to the webcast by logging on to http://investor.manpower.com.

Supplemental financial information referenced in the conference call can be found at http://investor.manpower.com.

About Manpower Inc.

Manpower Inc. (NYSE: MAN) is a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. The $18 billion company offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower’s worldwide network of 4,400 offices in 73 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world’s largest multinational corporations. The focus of Manpower’s work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. Manpower Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. More information on Manpower Inc. is available at www.manpower.com.

Forward-Looking Statements

This news release contains statements, including earning projections, that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company’s expected future results. The Company’s actual results may differ materially from those described or contemplated in the forward-looking statements. Factors that may cause the Company’s actual results to differ materially from those contained in the forward-looking statements can be found in the Company’s reports filed with the SEC, including the information under the heading ‘Risk Factors’ in its Annual Report on Form 10-K for the year ended December 31, 2005, which information is incorporated herein by reference.

- ### -


Manpower Inc.

Results of Operations

(In millions, except per share data)

 

     Three Months Ended December 31  
               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenues from services (a)

   $ 4,710.7    $ 4,068.3    15.8 %   9.1 %

Cost of services (b)

     3,844.9      3,321.9    15.7 %  
                  

Gross profit

     865.8      746.4    16.0 %   9.6 %

Selling and administrative expenses (b)

     696.0      615.6    13.0 %   6.9 %
                  

Operating profit

     169.8      130.8    29.8 %   22.0 %

Interest and other expenses

     14.1      7.0    N/A    
                  

Earnings before income taxes and discontinued operations

     155.7      123.8    25.7 %   19.3 %

Provision for income taxes

     56.1      35.4    58.6 %  
                  

Net earnings from continuing operations

     99.6      88.4    12.6 %   6.8 %

Income from discontinued operations, net of income taxes

     64.8      0.7    N/A    
                  

Net earnings

   $ 164.4    $ 89.1    84.6 %   69.4 %
                  

Net earnings per share - basic:

          

Continuing operations

   $ 1.17    $ 1.01    15.8 %  

Discontinued operations

     0.77      0.01    N/A    
                  

Total

   $ 1.94    $ 1.02    90.2 %  
                  

Net earnings per share - diluted:

          

Continuing operations

   $ 1.15    $ 1.00    15.0 %   9.0 %

Discontinued operations

     0.75      0.01    N/A    
                  

Total

   $ 1.90    $ 1.01    88.1 %   73.3 %
                  

Weighted average shares - basic

     84.8      87.2    -2.8 %  
                  

Weighted average shares - diluted

     86.5      88.5    -2.3 %  
                  

(a) Revenues from services include fees received from our franchise offices of $9.3 million and $9.1 million for the three months ended December 31, 2006 and 2005, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $353.2 million and $388.6 million for the three months ended December 31, 2006 and 2005, respectively.
(b) Our French business tax and profit sharing expenses, totaling $35.0 million and $19.7 million for the three months ended December 31, 2006 and 2005 respectively, previously reported as Selling and administrative expenses, are now reported in Cost of services as we believe this presentation is more appropriate given the nature of these expenses. All previously reported results have been revised to conform to the current year presentation.


Manpower Inc.

Operating Unit Results

(In millions)

 

     Three Months Ended December 31  
               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenues from Services: (a)

          

United States (b)

   $ 527.9    $ 534.2    -1.2 %   -1.2 %

France

     1,589.0      1,361.5    16.7 %   7.7 %

EMEA

     1,792.2      1,444.7    24.0 %   14.2 %

Jefferson Wells

     84.8      96.1    -11.9 %   -11.9 %

Right Management

     98.9      96.6    2.4 %   -1.8 %

Other Operations

     617.9      535.2    15.5 %   14.7 %
                  
   $ 4,710.7    $ 4,068.3    15.8 %   9.1 %
                  

Operating Unit Profit: (a)

          

United States

   $ 26.8    $ 23.2    15.2 %   15.2 %

France

     61.2      47.7    28.3 %   18.4 %

EMEA

     80.6      51.9    55.4 %   43.8 %

Jefferson Wells

     6.2      4.4    41.4 %   41.4 %

Right Management

     0.4      3.6    -87.5 %   -74.1 %

Other Operations

     21.1      19.2    9.9 %   10.3 %
                  
     196.3      150.0     

Corporate expenses

     23.2      15.9     

Amortization of intangible assets

     3.3      3.3     
                  

Operating profit

     169.8      130.8    29.8 %   22.0 %

Interest and other expenses (c)

     14.1      7.0     

Earnings before income taxes and discontinued operations

   $ 155.7    $ 123.8     
                  

(a) Certain Eastern European countries previously reported in France, and our Russian operations previously reported in Other Operations, are now reported in EMEA due to a change in management structure. All previously reported results for France, EMEA, and Other Operations have been revised to conform to the current presentation. The impact of these revisions is not significant.
(b) In the United States, revenues from services include fees received from the related franchise offices of $6.5 million for the three months ended December 31, 2006 and 2005. These fees are primarily based on revenues generated by the franchise offices, which were $286.0 million and $311.8 million for the three months ended December 31, 2006 and 2005, respectively.
(c) The components of interest and other expenses were:

 

     2006     2005  

Interest expense

   $  15.0     $  12.0  

Interest income

     (6.8 )     (3.4 )

Foreign exchange losses

     0.7       —    

Miscellaneous expense (income), net

     5.2       (1.6 )
                
   $ 14.1     $ 7.0  
                


Manpower Inc.

Operating Unit Results

(In millions)

 

     Year Ended December 31  
               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenues from services (a)

   $ 17,562.5    $ 15,845.4    10.8 %   10.0 %

Cost of services (b)

     14,416.5      13,013.6    10.8 %  
                  

Gross profit

     3,146.0      2,831.8    11.1 %   10.3 %

Selling and administrative expenses (b)

     2,613.9      2,403.0    8.8 %   8.2 %
                  

Operating profit

     532.1      428.8    24.1 %   21.9 %

Interest and other expenses

     50.2      41.8    20.2 %  
                  

Earnings before income taxes and discontinued operations

     481.9      387.0    24.5 %   22.1 %

Provision for income taxes

     176.2      131.9    33.6 %  
                  

Net earnings from continuing operations

     305.7      255.1    19.8 %   17.5 %

Income from discontinued operations, net of income taxes

     92.3      5.0    N/A    
                  

Net earnings

   $ 398.0      260.1    53.0 %   48.2 %
                  

Net earnings per share - basic:

          

Continuing operations

   $ 3.55    $ 2.89    22.8 %  

Discontinued operations

     1.07      0.06    N/A    
                  

Total

   $ 4.62    $ 2.95    56.6 %  
                  

Net earnings per share - diluted:

          

Continuing operations

   $ 3.48    $ 2.81    23.8 %   21.7 %

Discontinued operations

     1.06      0.06    N/A    
                  

Total

   $ 4.54    $ 2.87    58.2 %   53.0 %
                  

Weighted average shares - basic

     86.2      88.1    -2.2 %  
                  

Weighted average shares - diluted

     87.7      91.1    -3.7 %  
                  

(a) Revenues from services include fees received from our franchise offices of $35.7 million and $35.8 million for the year ended December 31, 2006 and 2005, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,497.0 million and $1,510.7 million for the year ended December 31, 2006 and 2005, respectively.
(b) Our French business tax and profit sharing expenses, totaling $117.4 million and $94.9 million for the year ended December 31, 2006 and 2005 respectively, previously reported as Selling and administrative expenses, are now reported in Cost of services, as we believe this presentation is more appropriate given the nature of these expenses. All previously reported results have been revised to conform to the current year presentation.


Manpower Inc.

Operating Unit Results

(In millions)

 

     Year Ended December 31  
               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenues from Services: (a)

          

United States (b)

   $ 2,114.9    $ 2,048.3    3.2 %   3.2 %

France

     6,019.1      5,475.8    9.9 %   8.4 %

EMEA

     6,363.3      5,471.2    16.3 %   14.7 %

Jefferson Wells

     373.0      386.2    -3.4 %   -3.4 %

Right Management

     387.3      401.8    -3.6 %   -4.2 %

Other Operations

     2,304.9      2,062.1    11.8 %   13.8 %
                  
   $ 17,562.5    $ 15,845.4    10.8 %   10.0 %
                  

Operating Unit Profit: (a)

          

United States

   $ 87.4    $ 68.7    27.2 %   27.2 %

France

     203.3      168.7    20.5 %   17.6 %

EMEA

     220.2      144.1    52.9 %   48.1 %

Jefferson Wells

     31.9      33.3    -4.2 %   -4.2 %

Right Management

     18.3      25.7    -28.8 %   -28.2 %

Other Operations

     69.9      60.4    16.0 %   19.6 %
                  
     631.0      500.9     

Corporate expenses

     85.8      59.0     

Amortization of intangible assets

     13.1      13.1     
                  

Operating profit

     532.1      428.8    24.1 %   21.9 %

Interest and other expenses (c)

     50.2      41.8     

Earnings before income taxes and discontinued operations

   $ 481.9    $ 387.0     
                  

(a) Certain Eastern European countries previously reported in France, and our Russian operations previously reported in Other Operations, are now reported in EMEA due to a change in management structure. All previously reported results for France, EMEA, and Other Operations have been revised to conform to the current presentation. The impact of these revisions is not significant.
(b) In the United States, revenues from services include fees received from the related franchise offices of $24.4 million and $24.9 million for the year ended December 31, 2006 and 2005, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,146.1 million and $1,196.9 million for the year ended December 31, 2006 and 2005, respectively.
(c) The components of interest and other expenses were:

 

     2006     2005  

Interest expense

   $ 54.1     $  46.7  

Interest income

     (18.3 )     (9.8 )

Foreign exchange losses

     3.2       —    

Miscellaneous expense, net

     11.2       4.9  
                
   $ 50.2     $ 41.8  
                


Manpower Inc.

Consolidated Balance Sheets

(In millions)

 

     Dec. 31
2006
    Dec. 31
2005
 
     (Unaudited)  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 687.9     $ 454.9  

Accounts receivable, net

     3,837.2       3,208.2  

Prepaid expenses and other assets

     90.5       107.5  

Future income tax benefits

     66.4       71.1  
                

Total current assets

     4,682.0       3,841.7  

Other assets:

    

Goodwill and other intangible assets, net

     1,293.6       1,256.5  

Other assets

     336.4       273.8  
                

Total other assets

     1,630.0       1,530.3  

Property and equipment:

    

Land, buildings, leasehold improvements and equipment

     693.2       642.4  

Less: accumulated depreciation and amortization

     491.1       446.0  
                

Net property and equipment

     202.1       196.4  
                
   $ 6,514.1     $ 5,568.4  
                

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 889.9     $ 685.4  

Employee compensation payable

     180.7       150.6  

Accrued liabilities

     562.1       435.4  

Accrued payroll taxes and insurance

     699.9       607.2  

Value added taxes payable

     517.0       441.9  

Short-term borrowings and current maturities of long-term debt

     32.0       260.0  
                

Total current liabilities

     2,881.6       2,580.5  

Other liabilities:

    

Long-term debt

     791.2       475.0  

Other long-term liabilities

     367.1       366.3  
                

Total other liabilities

     1,158.3       841.3  

Shareholders’ equity:

    

Common stock

     1.0       1.0  

Capital in excess of par value

     2,420.7       2,346.7  

Retained earnings

     617.0       269.9  

Accumulated other comprehensive income (loss)

     120.6       (11.0 )

Treasury stock, at cost

     (685.1 )     (460.0 )
                

Total shareholders’ equity

     2,474.2       2,146.6  
                

Total liabilities and shareholders’ equity

   $ 6,514.1     $ 5,568.4  
                


Manpower Inc.

Consolidated Statements of Cash Flows

(In millions)

 

    

Year Ended

Dec. 31

 
     2006     2005  
     (Unaudited)  

Cash Flows from Operating Activities:

    

Net earnings

   $ 398.0     $ 260.1  

Adjustments to reconcile net earnings to net cash provided by operating activities:

    

Gain on sale of businesses

     (121.8 )     (2.6 )

Depreciation and amortization

     88.8       92.9  

Amortization of discount on convertible debentures

     —         1.9  

Deferred income taxes

     (37.3 )     49.1  

Provision for doubtful accounts

     27.4       22.9  

Stock based compensation

     22.5       1.7  

Excess tax benefit on exercise of stock options

     (8.2 )     —    

Changes in operating assets and liabilities excluding the impact of acquisitions:

    

Accounts receivable

     (381.0 )     (350.4 )

Other assets

     35.1       (46.1 )

Other liabilities

     335.6       239.3  
                

Cash provided by operating activities

     359.1       268.8  
                

Cash Flows from Investing Activities:

    

Capital expenditures

     (80.0 )     (77.6 )

Acquisitions of businesses, net of cash acquired

     (13.0 )     (12.9 )

Proceeds from sale of businesses

     123.9       —    

Proceeds from sale of an equity interest

     8.8       —    

Proceeds from the sale of property and equipment

     5.3       4.8  
                

Cash provided (used) by investing activities

     45.0       (85.7 )
                

Cash Flows from Financing Activities:

    

Net borrowings of short-term facilities and long-term debt

     2.1       174.8  

Cash paid to settle convertible debentures

     —         (206.6 )

Proceeds from settlement of swap agreements

     —         50.7  

Proceeds from stock option and purchase plans

     54.0       28.0  

Excess tax benefit on exercise of stock options

     8.2       —    

Repurchases of common stock

     (235.9 )     (217.6 )

Dividends paid

     (50.8 )     (41.2 )
                

Cash used by financing activities

     (222.4 )     (211.9 )
                

Effect of exchange rate changes on cash

     51.3       (48.1 )
                

Change in cash and cash equivalents

     233.0       (76.9 )

Cash and cash equivalents, beginning of period

     454.9       531.8  
                

Cash and cash equivalents, end of period

   $ 687.9     $ 454.9  
                
Presentation materials for conference call
Manpower Inc.
2006 4
Quarter Results
Now
Next
January 30, 2007
Exhibit 99.2
th


2
Manpower Inc. 2006 4
th
Quarter Results
Forward Looking Statement
This presentation includes forward-looking statements which are
subject to risks and uncertainties. Actual results might differ
materially from those projected in the forward-looking statements.
Forward-looking statements can be identified by words such as
“expect,”
“plan,”
“may,”
“will,”
and similar expressions.  Additional
information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements is
contained in the Company’s Annual Report on Form 10-K dated
December 31, 2005, which information is incorporated herein by
reference, and such other factors as may be described from time to
time in the Company’s SEC filings.


3
Manpower Inc. 2006 4
th
Quarter Results
Consolidated Financial Highlights
Operating Profit
$170M
OP Margin
3.6%
9% CC
Revenue
$4.7B
Gross Margin
18.4%
EPS
from
Continuing
Operations
$1.15
16%
9% CC
3 bps
40 bps
15%
30%
22% CC
Q4 Highlights
Throughout this presentation, the difference between reported variances and Constant Currency
(CC) variances represents the impact of currency on our financial results. Constant Currency is
further explained on our Web site.


4
Manpower Inc. 2006 4
th
Quarter Results
Consolidated Gross Profit Margin Change
18.38%
18.35%
16%
17%
18%
19%
Q4 2005
2005 France
Payroll Tax
Audit
Settlement
Temporary
Recruitment
Permanent
Recruitment
Mix - Specialty
Q4 2006
- 0.32%
+ 0.29%
- 0.45%
+ 0.51%


5
Manpower Inc. 2006 4
th
Quarter Results
United States Segment
Q4 Financial Highlights
1%
OUP Margin
5.1%
80 bps
Revenue
$528M
OUP
$27M
15%
Operating
Unit
Profit
(OUP)
is
the
measure
that
we
use
to
evaluate
segment
performance.
OUP
is
equal
to
segment
revenues
less
direct
costs
and
branch
and
national
headquarters
operating
costs.


6
Manpower Inc. 2006 4
th
Quarter Results
France Segment
Q4 Financial Highlights
OUP Margin
3.9%
Revenue
$1.6B
OUP
$61M
17%
8% CC
40 bps
28%
18% CC


7
Manpower Inc. 2006 4
th
Quarter Results
EMEA Segment
Q4 Financial Highlights
OUP Margin
4.5%
Revenue
$1.8B
OUP
$81M
24%
14% CC
90 bps
55%
44% CC


8
Manpower Inc. 2006 4
th
Quarter Results
EMEA –
Q4 Revenue Growth YoY
Revenue Growth -
CC
Revenue Growth
% of Segment
Revenue
18%
16%
14%
13%
8%
7%
7%
17%
29%
24%
40%
20%
28%
31%
34%
24%
-1%
21%
16%
11%
29%
14%
20%
8%
Other
Spain
Netherlands
Germany
Elan
UK - Manpower
Nordics
Italy


9
Manpower Inc. 2006 4
th
Quarter Results
Jefferson Wells Segment
Q4 Financial Highlights
OUP Margin
7.4%
Revenue
$85M
OUP
$6M
280 bps
12%
41%


10
Manpower Inc. 2006 4
th
Quarter Results
Right Management Segment
Q4 Financial Highlights
OUP Margin
0.5%
Revenue
$99M
OUP
$0.4M
2%
2% CC
320 bps
88%
74% CC


11
Manpower Inc. 2006 4
th
Quarter Results
Other Operations Segment
Q4 Financial Highlights
OUP Margin
3.4%
Revenue
$618M
OUP
$21M
15%
15% CC
20 bps
10%
10% CC


12
Manpower Inc. 2006 4
th
Quarter Results
Other Operations –
Q4 Revenue Growth YoY
Revenue Growth -
CC
Revenue Growth
% of Segment
Revenue
35%
17%
14%
34%
30%
27%
2%
19%
8%
5%
7%
17%
Other
Australia/NZ
Mexico
Japan


13
Manpower Inc. 2006 4
th
Quarter Results
Financial Highlights


14
Manpower Inc. 2006 4
th
Quarter Results
Total Debt
Net Debt
Balance Sheet Highlights
416
370
280
135
842
902
735
823
0
250
500
750
1,000
2003
2004
2005
2006
Total Debt
($ in millions)
Total Debt to
Total Capitalization
39%
29%
26%
25%
0%
10%
20%
30%
40%
2003
2004
2005
2006


15
Manpower Inc. 2006 4
th
Quarter Results
* 3,972,600 shares in 2006 and 5,000,000 shares in 2005.
Proceeds
from
Sales
of
Businesses
Cash Flow Summary –
Full Year
2006
2005
Cash from Operations
359
269
Capital Expenditures
(80)
(78)
Free Cash Flow
279
191
Share Repurchases *
(236)
(218)
Change in Debt
2
19
Other
52
Change in Cash
233
(77)
($ in millions)
133
Proceeds from Equity Plans
54
28
(56)
Dividends Paid
(51)
(41)


16
Manpower Inc. 2006 4
th
Quarter Results
Up
20-22%
First Quarter Outlook
Revenue
U.S.
Flat/Down 2%
France
Up
15-17%
(Up 7-9% CC)
EMEA
(Up 13-15% CC)
Jefferson Wells
Right Management
Up 2-4%
(Up/Down 1% CC)
Other
Up 11-13%
(Up 11-13% CC)
Total
Up 13-15%
(Up 8-10% CC)
Gross Profit Margin
17.8 -
18.0%
Operating Profit Margin
2.0 –
2.2%
Tax Rate from Continuing Operations
36.5%
EPS from Continuing Operations
$0.57 -
$0.61
(Pos. $.04 Currency)
Down 4-6%


2006 4
th
Quarter Results
Now
Next
January 30, 2007


2006 4
th
Quarter Results
Questions?
Answers
January 30, 2007
Results of Operations & Operating Unit Results

Exhibit 99.3

(Page 1 of 9)

Manpower Inc.

Results of Operations (1)

(In millions)

 

     Three Months Ended March 31     Three Months Ended June 30  
    

2006

  

2005

   % Variance    

2006

  

2005

   % Variance  
         Amount
Reported
    Constant
Currency
          Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenues from services

   $ 3,877.2    $ 3,696.1    4.9 %   11.8 %   $ 4,384.6    $ 3,993.4    9.8 %   10.2 %

Cost of services

     3,184.0      3,040.7    4.7 %       3,601.8      3,285.4    9.6 %  
                                    

Gross profit

     693.2      655.4    5.8 %   12.3 %     782.8      708.0    10.6 %   11.0 %

Selling and administrative expenses

     632.9      594.8    6.4 %   12.6 %     644.7      600.5    7.4 %   7.9 %
                                    

Operating profit

     60.3      60.6    -0.4 %   9.5 %     138.1      107.5    28.4 %   28.3 %

Interest and other expenses

     13.0      11.8    10.6 %       12.5      11.2    11.3 %  
                                    

Earnings before income taxes and discontinued operations

     47.3      48.8    -3.1 %   5.7 %     125.6      96.3    30.4 %   29.9 %

Provision for income taxes

     17.8      17.8    0.0 %       46.0      35.5    29.6 %  

Net earnings from continuing operations

     29.5      31.0    -4.9 %   3.8 %     79.6      60.8    30.9 %   30.4 %
                                    

Income from discontinued operations, net of income taxes

     23.1      1.2    N/A         0.8      1.7    N/A    
                                    

Net earnings

   $ 52.6    $ 32.2    63.2 %   79.4 %   $ 80.4    $ 62.5    28.6 %   28.2 %
                                    

Net earnings per share - basic:

                    

Continuing operations

   $ 0.34    $ 0.34    0.0 %     $ 0.91    $ 0.69    31.9 %  

Discontinued operations

     0.26      0.02    N/A         0.01      0.02    N/A    
                                    

Total

   $ 0.60    $ 0.36    66.7 %     $ 0.92    $ 0.71    29.6 %  
                                    

Net earnings per share - diluted:

                    

Continuing operations

   $ 0.33    $ 0.33    0.0 %   9.0 %   $ 0.90    $ 0.68    32.4 %   30.9 %

Discontinued operations

     0.26      0.02    N/A         0.01      0.02    N/A    
                                    

Total

   $ 0.59    $ 0.35    68.6 %   85.7 %   $ 0.91    $ 0.70    30.0 %   28.6 %
                                    

Weighted average shares - basic

     87.4      89.8    -2.6 %       87.3      88.6    -1.5 %  
                                    

Weighted average shares - diluted

     88.7      96.9    -8.5 %       88.7      89.5    -0.9 %  
                                    
                           Six Months Ended June 30  
                          

2006

  

2005

   % Variance  
                   Amount
Reported
    Constant
Currency
 
                           (Unaudited)  

Revenues from services

             $ 8,261.8    $ 7,689.5    7.4 %   11.0 %

Cost of services

               6,785.8      6,326.1    7.3 %  
                            

Gross profit

               1,476.0      1,363.4    8.3 %   11.6 %

Selling and administrative expenses

               1,277.6      1,195.3    6.9 %   10.2 %
                            

Operating profit

               198.4      168.1    18.0 %   21.5 %

Interest and other expenses

               25.5      23.0    11.0 %  
                            

Earnings before income taxes and discontinued operations

               172.9      145.1    19.1 %   21.8 %

Provision for income taxes

               63.8      53.3    19.7 %  

Net earnings from continuing operations

               109.1      91.8    18.8 %   21.4 %
                            

Income from discontinued operations, net of income taxes

               23.9      2.9    N/A    
                            

Net earnings

             $ 133.0    $ 94.7    40.4 %   45.3 %
                            

Net earnings per share - basic:

                    

Continuing operations

             $ 1.25    $ 1.03    21.4 %  

Discontinued operations

               0.27      0.03    N/A    
                            

Total

             $ 1.52    $ 1.06    43.4 %  
                            

Net earnings per share - diluted:

                    

Continuing operations

             $ 1.23    $ 1.00    23.0 %   26.0 %

Discontinued operations

               0.27      0.03    N/A    
                            

Total

             $ 1.50    $ 1.03    45.6 %   50.5 %
                            

Weighted average shares - basic

               87.3      89.2    -2.1 %  
                            

Weighted average shares - diluted

               88.8      93.2    -4.8 %  
                            

(1) Restatement for discontinued operations and reclassifications of business tax and profit sharing expenses.


(Page 2 of 9)

Manpower Inc.

Results of Operations (1)

(In millions)

 

     Three Months Ended September 30  
    

2006

  

2005

   % Variance  
         Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenues from services

   $ 4,590.0    $ 4,087.6    12.3 %   9.0 %

Cost of services

     3,785.8      3,365.6    12.5 %  
                  

Gross profit

     804.2      722.0    11.4 %   8.4 %

Selling and administrative expenses

     640.3      592.1    8.1 %   5.4 %
                  

Operating profit

     163.9      129.9    26.2 %   22.3 %

Interest and other expenses

     10.6      11.8    -10.5 %  
                  

Earnings before income taxes and discontinued operations

     153.3      118.1    29.9 %   25.6 %

Provision for income taxes

     56.3      43.2    30.3 %  

Net earnings from continuing operations

     97.0      74.9    29.6 %   25.3 %
                  

Income from discontinued operations, net of income taxes

     3.6      1.4    N/A    
                  

Net earnings

   $ 100.6    $ 76.3    31.8 %   27.3 %
                  

Net earnings per share - basic:

          

Continuing operations

   $ 1.14    $ 0.86    32.6 %  

Discontinued operations

     0.04      0.02    N/A    
                  

Total

   $ 1.18    $ 0.88    34.1 %  
                  

Net earnings per share - diluted:

          

Continuing operations

   $ 1.12    $ 0.85    31.8 %   27.1 %

Discontinued operations

     0.04      0.02    N/A    
                  

Total

   $ 1.16    $ 0.87    33.3 %   28.7 %
                  

Weighted average shares - basic

     85.3      87.0    -2.0 %  
                  

Weighted average shares - diluted

     86.7      88.2    -1.8 %  
                  
     Nine Months Ended September 30  
    

2006

  

2005

   % Variance  
         Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenues from services

   $ 12,851.8    $ 11,777.1    9.1 %   10.3 %

Cost of services

     10,571.6      9,691.7    9.1 %  
                  

Gross profit

     2,280.2      2,085.4    9.3 %   10.5 %

Selling and administrative expenses

     1,917.9      1,787.4    7.3 %   8.6 %
                  

Operating profit

     362.3      298.0    21.6 %   21.8 %

Interest and other expenses

     36.1      34.8    3.7 %  
                  

Earnings before income taxes and discontinued operations

     326.2      263.2    24.0 %   23.5 %

Provision for income taxes

     120.1      96.5    24.4 %  

Net earnings from continuing operations

     206.1      166.7    23.7 %   23.2 %
                  

Income from discontinued operations, net of income taxes

     27.5      4.3    N/A    
                  

Net earnings

   $ 233.6    $ 171.0    36.6 %   37.2 %
                  

Net earnings per share - basic:

          

Continuing operations

   $ 2.38    $ 1.88    26.6 %  

Discontinued operations

     0.32      0.05    N/A    
                  

Total

   $ 2.70    $ 1.93    39.9 %  
                  

Net earnings per share - diluted:

          

Continuing operations

   $ 2.34    $ 1.83    27.9 %   27.3 %

Discontinued operations

     0.31      0.05    N/A    
                  

Total

   $ 2.65    $ 1.88    41.0 %   42.0 %
                  

Weighted average shares - basic

     86.5      88.4    -2.2 %  
                  

Weighted average shares - diluted

     88.0      91.7    -4.0 %  
                  

(1) Restatement for discontinued operations and reclassifications of business tax and profit sharing expenses.


(Page 3 of 9)

Manpower Inc.

Results of Operations (1)

(In millions)

 

     Three Months Ended March 31     Three Months Ended June 30  
    

2005

  

2004

    % Variance    

2005

  

2004

    % Variance  
        Amount
Reported
    Constant
Currency
         Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenues from services

   $ 3,696.1    $ 3,270.8     13.0 %   9.1 %   $ 3,993.4    $ 3,560.5     12.2 %   8.4 %

Cost of services

     3,040.7      2,679.8     13.5 %       3,285.4      2,911.1     12.9 %  
                                      

Gross profit

     655.4      591.0     10.9 %   7.3 %     708.0      649.4     9.0 %   5.6 %

Selling and administrative expenses

     594.8      534.0     11.4 %   7.9 %     600.5      553.8     8.4 %   5.1 %
                                      

Operating profit

     60.6      57.0     6.4 %   1.9 %     107.5      95.6     12.4 %   8.6 %

Interest and other expenses

     11.8      (3.9 )   N/A         11.2      12.2     -8.1 %  
                                      

Earnings before income taxes and discontinued operations

     48.8      60.9     -19.9 %   -22.9 %     96.3      83.4     15.5 %   11.9 %

Provision for income taxes

     17.8      20.6     -13.6 %       35.5      30.0     18.4 %  

Net earnings from continuing operations

     31.0      40.3     -23.1 %   -26.0 %     60.8      53.4     13.8 %   10.3 %
                                      

Income from discontinued operations, net of income taxes

     1.2      (0.7 )   N/A         1.7      (0.3 )   N/A    
                                      

Net earnings

   $ 32.2    $ 39.6     -18.6 %   -21.7 %   $ 62.5    $ 53.1     17.7 %   14.2 %
                                      

Net earnings per share - basic:

                  

Continuing operations

   $ 0.34    $ 0.47     -27.7 %     $ 0.69    $ 0.60     15.0 %  

Discontinued operations

     0.02      (0.01 )   N/A         0.02      (0.01 )   N/A    
                                      

Total

   $ 0.36    $ 0.46     -21.7 %     $ 0.71    $ 0.59     20.3 %  
                                      

Net earnings per share - diluted:

                  

Continuing operations

   $ 0.33    $ 0.44     -25.0 %   -25.6 %   $ 0.68    $ 0.56     21.4 %   17.9 %

Discontinued operations

     0.02      (0.01 )   N/A         0.02      —       N/A    
                                      

Total

   $ 0.35    $ 0.43     -18.6 %   -21.6 %   $ 0.70    $ 0.56     25.0 %   21.4 %
                                      

Weighted average shares - basic

     89.8      85.9     4.6 %       88.6      89.6     -1.2 %  
                                      

Weighted average shares - diluted

     96.9      93.9     3.2 %       89.5      97.4     -8.1 %  
                                      
                            Six Months Ended June 30  
                           

2005

  

2004

    % Variance  
                 Amount
Reported
    Constant
Currency
 
                            (Unaudited)  

Revenues from services

            $ 7,689.5    $ 6,831.3     12.6 %   8.8 %

Cost of services

              6,326.1      5,590.9     13.1 %  
                            

Gross profit

              1,363.4      1,240.4     9.9 %   6.4 %

Selling and administrative expenses

              1,195.3      1,087.8     9.9 %   6.5 %
                            

Operating profit

              168.1      152.6     10.2 %   6.1 %

Interest and other expenses

              23.0      8.3     N/A    
                            

Earnings before income taxes and discontinued operations

              145.1      144.3     0.5 %   -2.8 %

Provision for income taxes

              53.3      50.6     5.4 %  

Net earnings from continuing operations

              91.8      93.7     -2.1 %   -5.3 %
                            

Income from discontinued operations, net of income taxes

              2.9      (1.0 )   N/A    
                            

Net earnings

            $ 94.7    $ 92.7     2.2 %   -1.2 %
                            

Net earnings per share - basic:

                  

Continuing operations

            $ 1.03    $ 1.07     -3.7 %  

Discontinued operations

              0.03      (0.01 )   N/A    
                            

Total

            $ 1.06    $ 1.06     0.0 %  
                            

Net earnings per share - diluted:

                  

Continuing operations

            $ 1.00    $ 1.00     0.0 %   -3.0 %

Discontinued operations

              0.03      (0.01 )   N/A    
                            

Total

            $ 1.03    $ 0.99     4.0 %   1.0 %
                            

Weighted average shares - basic

              89.2      87.7     1.7 %  
                            

Weighted average shares - diluted

              93.2      96.0     -2.9 %  
                            

(1) Restatement for discontinued operations and reclassifications of business tax and profit sharing expenses.


(Page 4 of 9)

Manpower Inc.

Results of Operations (1)

(In millions)

 

     Three Months Ended September 30     Three Months Ended December 31  
    

2005

  

2004

    % Variance    

2005

  

2004

    % Variance  
        Amount
Reported
    Constant
Currency
         Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenues from services

   $ 4,087.6    $ 3,838.2     6.5 %   6.3 %   $ 4,068.3    $ 4,005.5     1.6 %   8.1 %

Cost of services

     3,365.6      3,144.4     7.0 %       3,321.9      3,270.4     1.6 %  
                                      

Gross profit

     722.0      693.8     4.1 %   3.8 %     746.4      735.1     1.5 %   7.7 %

Selling and administrative expenses

     592.1      566.5     4.5 %   4.3 %     615.6      617.2     -0.2 %   5.6 %
                                      

Operating profit

     129.9      127.3     2.0 %   1.7 %     130.8      117.9     10.9 %   18.7 %

Interest and other expenses

     11.8      9.0     30.6 %       7.0      8.9     -22.5 %  
                                      

Earnings before income taxes and discontinued operations

     118.1      118.3     -0.2 %   -0.4 %     123.8      109.0     13.6 %   25.2 %

Provision for income taxes

     43.2      34.5     25.3 %       35.4      39.2     -9.6 %  

Net earnings from continuing operations

     74.9      83.8     -10.6 %   -10.9 %     88.4      69.8     26.7 %   39.6 %
                                      

Income from discontinued operations, net of income taxes

     1.4      (0.4 )   N/A         0.7      (0.2 )   N/A    
                                      

Net earnings

   $ 76.3    $ 83.4     -8.5 %   -8.7 %   $ 89.1    $ 69.6     27.9 %   41.0 %
                                      

Net earnings per share - basic:

                  

Continuing operations

   $ 0.86    $ 0.93     -7.5 %     $ 1.01    $ 0.77     31.2 %  

Discontinued operations

     0.02      —       N/A         0.01      —       N/A    
                                      

Total

   $ 0.88    $ 0.93     -5.4 %     $ 1.02    $ 0.77     32.5 %  
                                      

Net earnings per share - diluted:

                  

Continuing operations

   $ 0.85    $ 0.87     -2.3 %   2.3 %   $ 1.00    $ 0.73     37.0 %   45.2 %

Discontinued operations

     0.02      —       N/A         0.01      —       N/A    
                                      

Total

   $ 0.87    $ 0.87     0.0 %   -1.1 %   $ 1.01    $ 0.73     38.4 %   46.6 %
                                      

Weighted average shares - basic

     87.0      90.0     -3.4 %       87.2      90.1     -3.2 %  
                                      

Weighted average shares - diluted

     88.2      97.2     -9.2 %       88.5      97.5     -9.2 %  
                                      
     Nine Months Ended September 30     Year Ended December 31  
    

2005

  

2004

    % Variance    

2005

  

2004

    % Variance  
        Amount
Reported
    Constant
Currency
         Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenues from services

   $ 11,777.1    $ 10,669.5     10.4 %   7.9 %   $ 15,845.4    $ 14,675.0     8.0 %   7.9 %

Cost of services

     9,691.7      8,735.3     10.9 %       13,013.6      12,005.7     8.4 %  
                                      

Gross profit

     2,085.4      1,934.2     7.8 %   5.5 %     2,831.8      2,669.3     6.1 %   6.1 %

Selling and administrative expenses

     1,787.4      1,654.3     8.0 %   5.7 %     2,403.0      2,271.5     5.8 %   5.7 %
                                      

Operating profit

     298.0      279.9     6.5 %   4.1 %     428.8      397.8     7.8 %   8.4 %

Interest and other expenses

     34.8      17.3     N/A         41.8      26.2     59.2 %  
                                      

Earnings before income taxes and discontinued operations

     263.2      262.6     0.2 %   -1.7 %     387.0      371.6     4.2 %   6.2 %

Provision for income taxes

     96.5      85.1     13.4 %       131.9      124.3     6.2 %  

Net earnings from continuing operations

     166.7      177.5     -6.1 %   -7.9 %     255.1      247.3     3.1 %   5.2 %
                                      

Income from discontinued operations, net of income taxes

     4.3      (1.4 )   N/A         5.0      (1.6 )   N/A    
                                      

Net earnings

   $ 171.0    $ 176.1     -2.9 %   -4.7 %   $ 260.1    $ 245.7     5.9 %   7.9 %
                                      

Net earnings per share - basic:

                  

Continuing operations

   $ 1.88    $ 2.01     -6.5 %     $ 2.89    $ 2.78     4.0 %  

Discontinued operations

     0.05      (0.02 )   N/A         0.06      (0.02 )   N/A    
                                      

Total

   $ 1.93    $ 1.99     -3.0 %     $ 2.95    $ 2.76     6.9 %  
                                      

Net earnings per share - diluted:

                  

Continuing operations

   $ 1.83    $ 1.88     -2.7 %   -4.3 %   $ 2.81    $ 2.61     7.7 %   8.4 %

Discontinued operations

     0.05      (0.02 )   N/A         0.06      (0.02 )   N/A    
                                      

Total

   $ 1.88    $ 1.86     1.1 %   -1.1 %   $ 2.87    $ 2.59     10.8 %   11.6 %
                                      

Weighted average shares - basic

     88.4      88.5     -0.1 %       88.1      88.9     -0.9 %  
                                      

Weighted average shares - diluted

     91.7      96.4     -4.9 %       91.1      96.8     -5.8 %  
                                      

(1) Restatement for discontinued operations and reclassifications of business tax and profit sharing expenses.

 


(Page 5 of 9)

Manpower Inc.

Operating unit Results (1)

(In millions)

 

     Three Months Ended March 31     Three Months Ended June 30  
               % Variance               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
    2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenue from Services:

                    

United States

   $ 510.3    $ 475.9    7.2 %   7.2 %   $ 534.6    $ 506.7    5.5 %   5.5 %

France

     1,240.5      1,238.0    0.2 %   9.2 %     1,535.6      1,397.0    9.9 %   9.8 %

EMEA

     1,392.2      1,289.5    8.0 %   17.2 %     1,549.2      1,381.1    12.2 %   12.6 %

Jefferson Wells

     95.5      92.7    3.0 %   3.0 %     98.8      93.5    5.7 %   5.7 %

Right Management

     95.3      103.3    -7.7 %   -4.4 %     102.6      107.1    -4.2 %   -4.2 %

Other Operations

     543.4      496.7    9.4 %   13.8 %     563.8      508.0    11.0 %   13.7 %
                                    
   $ 3,877.2    $ 3,696.1    4.9 %   11.8 %     4,384.6      3,993.4    9.8 %   10.2 %
                                    

Operating Unit Profit:

                    

United States

   $ 9.5    $ 4.9    93.3 %   93.3 %   $ 22.5    $ 18.0    25.2 %   25.2 %

France

     30.4      28.4    7.1 %   16.7 %     49.7      42.0    18.3 %   17.7 %

EMEA

     23.0      12.1    90.8 %   109.6 %     50.7      35.9    40.9 %   39.9 %

Jefferson Wells

     5.7      8.1    -29.4 %   -29.4 %     10.0      9.3    7.7 %   7.7 %

Right Management

     4.6      10.3    -54.8 %   -55.5 %     11.1      9.5    15.8 %   14.3 %

Other Operations

     17.6      12.1    44.7 %   53.8 %     14.8      12.8    16.5 %   21.2 %
                                    
     90.8      75.9          158.8      127.5     

Corporate Expenses

     27.3      12.1          17.4      16.7     

Amortization of intangible assets

     3.2      3.2          3.3      3.3     
                                    

Operating profit

     60.3      60.6    -0.4 %   9.5 %     138.1      107.5    28.4 %   28.3 %

Interest and other expenses

     13.0      11.8          12.5      11.2     
                                    

Earnings before income taxes and discontinued operations

   $ 47.3    $ 48.8        $ 125.6    $ 96.3     
                                    
                           Six Months Ended June 30  
                                     % Variance  
                           2006    2005    Amount
Reported
    Constant
Currency
 
                           (Unaudited)  

Revenue from Services:

                    

United States

             $ 1,044.9    $ 982.6    6.3 %   6.3 %

France

               2,776.1      2,635.0    5.4 %   9.5 %

EMEA

               2,941.4      2,670.6    10.1 %   14.8 %

Jefferson Wells

               194.3      186.2    4.3 %   4.3 %

Right Management

               197.9      210.4    -6.0 %   -4.3 %

Other Operations

               1,107.2      1,004.7    10.2 %   13.8 %
                            
             $ 8,261.8    $ 7,689.5    7.4 %   11.0 %
                            

Operating Unit Profit:

                    

United States

             $ 32.0    $ 22.9    39.8 %   39.8 %

France

               80.1      70.4    13.8 %   17.3 %

EMEA

               73.7      48.0    53.4 %   57.4 %

Jefferson Wells

               15.7      17.4    -9.6 %   -9.6 %

Right Management

               15.7      19.8    -20.9 %   -21.9 %

Other Operations

               32.4      24.9    30.3 %   37.2 %
                            
               249.6      203.4     

Corporate Expenses

               44.7      28.8     

Amortization of intangible assets

               6.5      6.5     
                            

Operating profit

               198.4      168.1    18.0 %   21.5 %

Interest and other expenses

               25.5      23.0     
                            

Earnings before income taxes and discontinued operations

             $ 172.9    $ 145.1     
                            

 

(1) Restatement for discontinued operations and reclass of segment results.


(Page 6 of 9)

Manpower Inc.

Operating unit Results (1)

(In millions)

 

     Three Months Ended September 30  
               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenue from Services:

          

United States

   $ 542.1    $ 531.5    2.0 %   2.0 %

France

     1,654.0      1,479.3    11.8 %   7.0 %

EMEA

     1,629.7      1,355.9    20.2 %   15.1 %

Jefferson Wells

     93.9      103.9    -9.6 %   -9.6 %

Right Management

     90.5      94.8    -4.6 %   -6.7 %

Other Operations

     579.8      522.2    11.0 %   12.8 %
                  
   $ 4,590.0    $ 4,087.6    12.3 %   9.0 %
                  

Operating Unit Profit:

          

United States

   $ 28.6    $ 22.6    26.7 %   26.7 %

France

     62.0      50.6    22.4 %   17.1 %

EMEA

     65.9      44.2    49.2 %   43.0 %

Jefferson Wells

     10.0      11.5    -13.7 %   -13.7 %

Right Management

     2.2      2.3    -5.2 %   -10.3 %

Other Operations

     16.4      16.3    1.3 %   3.8 %
                  
     185.1      147.5     

Corporate Expenses

     17.9      14.3     

Amortization of intangible assets

     3.3      3.3     
                  

Operating profit

     163.9      129.9    26.2 %   22.3 %

Interest and other expenses

     10.6      11.8     
                  

Earnings before income taxes and discontinued operations

   $ 153.3    $ 118.1     
                  
     Nine Months Ended September 30  
               % Variance  
     2006    2005    Amount
Reported
    Constant
Currency
 
     (Unaudited)  

Revenue from Services:

          

United States

   $ 1,587.0    $ 1,514.1    4.8 %   4.8 %

France

     4,430.1      4,114.3    7.7 %   8.6 %

EMEA

     4,571.1      4,026.5    13.5 %   14.9 %

Jefferson Wells

     288.2      290.1    -0.6 %   -0.6 %

Right Management

     288.4      305.2    -5.5 %   -5.0 %

Other Operations

     1,687.0      1,526.9    10.5 %   13.4 %
                  
   $ 12,851.8    $ 11,777.1    9.1 %   10.3 %
                  

Operating Unit Profit:

          

United States

   $ 60.6    $ 45.5    33.3 %   33.3 %

France

     142.1      121.0    17.4 %   17.2 %

EMEA

     139.6      92.2    51.4 %   50.5 %

Jefferson Wells

     25.7      28.9    -11.2 %   -11.2 %

Right Management

     17.9      22.1    -19.2 %   -20.7 %

Other Operations

     48.8      41.2    18.8 %   23.9 %
                  
     434.7      350.9     

Corporate Expenses

     62.6      43.1     

Amortization of intangible assets

     9.8      9.8     
                  

Operating profit

     362.3      298.0    21.6 %   21.8 %

Interest and other expenses

     36.1      34.8     
                  

Earnings before income taxes and discontinued operations

   $ 326.2    $ 263.2     
                  

(1) Restatement for discontinued operations and reclass of segment results.


(Page 7 of 9)

Manpower Inc.

Operating unit Results (1)

(In millions)

 

     Three Months Ended March 31     Three Months Ended June 30  
                % Variance               % Variance  
     2005    2004     Amount
Reported
    Constant
Currency
    2005    2004    Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenue from Services:

                   

United States

   $ 475.9    $ 474.6     0.3 %   0.3 %   $ 506.7    $ 517.3    -2.1 %   -2.1 %

France

     1,238.0      1,131.4     9.4 %   4.3 %     1,397.0      1,272.7    9.8 %   5.3 %

EMEA

     1,289.5      1,088.0     18.5 %   13.5 %     1,381.1      1,152.2    19.9 %   15.4 %

Jefferson Wells

     92.7      50.5     83.7 %   83.7 %     93.5      76.6    22.0 %   22.0 %

Right Management

     103.3      100.4     2.9 %   0.4 %     107.1      118.1    -9.4 %   -11.8 %

Other Operations

     496.7      425.9     16.6 %   13.9 %     508.0      423.6    20.0 %   14.9 %
                                     
   $ 3,696.1    $ 3,270.8     13.0 %   9.1 %   $ 3,993.4    $ 3,560.5    12.2 %   8.4 %
                                     

Operating Unit Profit:

                   

United States

   $ 4.9    $ 2.8     74.6 %   74.6 %   $ 18.0    $ 14.1    27.3 %   27.3 %

France

     28.4      28.8     -1.5 %   -6.7 %     42.0      39.5    6.5 %   2.5 %

EMEA

     12.1      14.1     -14.1 %   -17.8 %     35.9      26.8    34.4 %   29.7 %

Jefferson Wells

     8.1      2.0     N/A     N/A       9.3      11.1    -16.0 %   -16.0 %

Right Management

     10.3      9.6     7.4 %   4.9 %     9.5      12.6    -25.0 %   -27.2 %

Other Operations

     12.1      15.2     -20.0 %   -21.9 %     12.8      9.3    36.1 %   30.0 %
                                     
     75.9      72.5           127.5      113.4     

Corporate Expenses

     12.1      13.2           16.7      14.4     

Amortization of intangible assets

     3.2      2.3           3.3      3.4     
                                     

Operating profit

     60.6      57.0     6.4 %   1.9 %     107.5      95.6    12.4 %   8.6 %

Interest and other expenses

     11.8      (3.9 )         11.2      12.2     
                                     

Earnings before income taxes and discontinued operations

   $ 48.8    $ 60.9         $ 96.3    $ 83.4     
                                     
                            Six Months Ended June 30  
                                      % Variance  
                            2005    2004    Amount
Reported
    Constant
Currency
 
                            (Unaudited)  

Revenue from Services:

                   

United States

            $ 982.6    $ 991.9    -0.9 %   -0.9 %

France

              2,635.0      2,404.1    9.6 %   4.8 %

EMEA

              2,670.6      2,240.2    19.2 %   14.5 %

Jefferson Wells

              186.2      127.1    46.5 %   46.5 %

Right Management

              210.4      218.5    -3.7 %   -6.2 %

Other Operations

              1,004.7      849.5    18.3 %   14.4 %
                           
              7,689.5      6,831.3    12.6 %   8.8 %
                           

Operating Unit Profit:

                   

United States

              22.9      16.9    35.2 %   35.2 %

France

              70.4      68.3    3.1 %   -1.4 %

EMEA

              48.0      40.9    17.7 %   13.3 %

Jefferson Wells

              17.4      13.1    32.7 %   32.7 %

Right Management

              19.8      22.2    -11.1 %   -13.4 %

Other Operations

              24.9      24.5    1.4 %   -2.1 %
                           
              203.4      185.9     

Corporate Expenses

              28.8      27.6     

Amortization of intangible assets

              6.5      5.7     
                           

Operating profit

              168.1      152.6    10.2 %   6.1 %

Interest and other expenses

              23.0      8.3     
                           

Earnings before income taxes and discontinued operations

            $ 145.1    $ 144.3     
                           

(1) Restatement for discontinued operations and reclass of segment results.


(Page 8 of 9)

Manpower Inc.

Operating unit Results (1)

(In millions)

 

     Three Months Ended September 30     Three Months Ended December 31  
    

2005

  

2004

   % Variance    

2005

  

2004

    % Variance  
           Amount
Reported
    Constant
Currency
         Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenue from Services:

                   

United States

   $ 531.5    $ 531.8    —       —       $ 534.2    $ 517.4     3.2 %   3.2 %

France

     1,479.3      1,394.8    6.1 %   6.4 %     1,361.5      1,401.2     -2.8 %   6.0 %

EMEA

     1,355.9      1,257.3    7.8 %   8.4 %     1,444.7      1,385.5     4.3 %   12.9 %

Jefferson Wells

     103.9      110.6    -6.1 %   -6.1 %     96.1      102.9     -6.5 %   -6.5 %

Right Management

     94.8      100.7    -5.8 %   -6.3 %     96.6      105.4     -8.3 %   -4.7 %

Other Operations

     522.2      443.0    17.9 %   14.0 %     535.2      493.1     8.5 %   11.5 %
                                     
   $ 4,087.6    $ 3,838.2    6.5 %   6.3 %   $ 4,068.3    $ 4,005.5     1.6 %   8.1 %
                                     

Operating Unit Profit:

                   

United States

   $ 22.6    $ 15.6    44.7 %   44.7 %   $ 23.2    $ 16.8     38.4 %   38.4 %

France

     50.6      55.4    -8.7 %   -8.3 %     47.7      55.1     -13.5 %   -5.5 %

EMEA

     44.2      34.4    27.7 %   28.2 %     51.9      41.6     24.7 %   36.3 %

Jefferson Wells

     11.5      25.1    -54.2 %   -54.2 %     4.4      13.2     -66.5 %   -66.5 %

Right Management

     2.3      3.5    -32.0 %   -35.9 %     3.6      (0.3 )   N/A     N/A  

Other Operations

     16.3      10.6    55.1 %   49.4 %     19.2      10.2     87.0 %   91.2 %
                                     
     147.5      144.6          150.0      136.6      

Corporate Expenses

     14.3      14.0          15.9      15.4      

Amortization of intangible assets

     3.3      3.3          3.3      3.3      
                                     

Operating profit

     129.9      127.3    2.0 %   1.7 %     130.8      117.9     10.9 %   18.7 %

Interest and other expenses

     11.8      9.0          7.0      8.9      
                                     

Earnings before income taxes and discontinued operations

   $ 118.1    $ 118.3        $ 123.8    $ 109.0      
                                     
     Nine Months Ended September 30     Year Ended December 31  
    

2005

  

2004

   % Variance    

2005

  

2004

    % Variance  
           Amount
Reported
    Constant
Currency
         Amount
Reported
    Constant
Currency
 
     (Unaudited)     (Unaudited)  

Revenue from Services:

                   

United States

   $ 1,514.1    $ 1,523.7    -0.6 %   -0.6 %   $ 2,048.3    $ 2,041.1     0.4 %   0.4 %

France

     4,114.3      3,798.9    8.3 %   5.4 %     5,475.8      5,200.1     5.3 %   5.5 %

EMEA

     4,026.5      3,497.5    15.1 %   12.3 %     5,471.2      4,883.0     12.0 %   12.5 %

Jefferson Wells

     290.1      237.7    22.0 %   22.0 %     386.2      340.6     13.4 %   13.4 %

Right Management

     305.2      319.2    -4.4 %   -6.3 %     401.8      424.6     -5.4 %   -5.9 %

Other Operations

     1,526.9      1,292.5    18.1 %   14.2 %     2,062.1      1,785.6     15.5 %   13.5 %
                                     
     11,777.1      10,669.5    10.4 %   7.9 %   $ 15,845.4    $ 14,675.0     8.0 %   7.9 %
                                     

Operating Unit Profit:

                   

United States

     45.5      32.5    39.8 %   39.8 %   $ 68.7    $ 49.3     39.3 %   39.3 %

France

     121.0      123.7    -2.1 %   -4.5 %     168.7      178.8     -5.6 %   -4.8 %

EMEA

     92.2      75.3    22.3 %   20.1 %     144.1      116.9     23.1 %   25.9 %

Jefferson Wells

     28.9      38.2    -24.4 %   -24.4 %     33.3      51.4     -35.2 %   -35.2 %

Right Management

     22.1      25.7    -13.9 %   -16.4 %     25.7      25.4     1.4 %   -3.2 %

Other Operations

     41.2      35.1    17.5 %   13.3 %     60.4      45.3     33.3 %   31.0 %
                                     
     350.9      330.5          500.9      467.1      

Corporate Expenses

     43.1      41.6          59.0      57.0      

Amortization of intangible assets

     9.8      9.0          13.1      12.3      
                                     

Operating profit

     298.0      279.9    6.5 %   4.1 %     428.8      397.8     7.8 %   8.4 %

Interest and other expenses

     34.8      17.3          41.8      26.2      
                                     

Earnings before income taxes and discontinued operations

   $ 263.2    $ 262.6        $ 387.0    $ 371.6      
                                     

(1) Restatement for discontinued operations and reclass of segment results.


(Page 9 of 9)

Manpower Inc.

Results of Operations (1)

(Unaudited)

(In millions)

 

     Three Months Ended March 31     Three Months Ended June 30  
     Quarter to Date     Year to Date     Quarter to Date     Year to Date  
     Restated     Restated     Restated     Restated  

2004

        

Interest expense

   $ 11.1       $ 11.9     $ 23.0  

Interest income

     (2.4 )       (1.6 )     (4.0 )

Foreign exchange loss (gain)

     0.1         0.2       0.3  

Miscellaneous expense (income), net

     (12.7 )       1.7       11.0  
                          

Interest and other expenses

   $ (3.9 )     $ 12.2     $ 30.3  

2005

        

Interest expense

   $ 11.5       $ 10.8     $ 22.3  

Interest income

     (2.3 )       (2.1 )     (4.4 )

Foreign exchange loss (gain)

     0.8         (0.6 )     0.2  

Miscellaneous expense (income), net

     1.8         3.1       4.9  
                          

Interest and other expenses

   $ 11.8       $ 11.2     $ 23.0  

2006

        

Interest expense

   $ 11.6       $ 13.1     $ 24.7  

Interest income

     (3.3 )       (3.8 )     (7.1 )

Foreign exchange loss (gain)

     0.9         1.3       2.2  

Miscellaneous expense (income), net

     3.8         1.9       5.7  
                          

Interest and other expenses

   $ 13.0       $ 12.5     $ 25.5  
     Three Months Ended September 30     Three Months Ended December 31  
     Quarter to Date     Year to Date     Quarter to Date     Year to Date  
     Restated     Restated     Restated     Restated  

2004

        

Interest expense

   $ 10.9     $ 33.9     $ 11.4     $ 45.3  

Interest income

     (2.2 )     (6.2 )     (3.2 )     (9.4 )

Foreign exchange loss (gain)

     (0.4 )     (0.1 )     (1.5 )     (1.6 )

Miscellaneous expense (income), net

     0.7       (10.3 )     2.2       (8.1 )
                                

Interest and other expenses

   $ 9.0     $ 17.3     $ 8.9     $ 26.2  

2005

        

Interest expense

   $ 12.4     $ 34.7     $ 12.0     $ 46.7  

Interest income

     (2.0 )     (6.4 )     (3.4 )     (9.8 )

Foreign exchange loss (gain)

     (0.2 )     —         —         —    

Miscellaneous expense (income), net

     1.6       6.5       (1.6 )     4.9  
                                

Interest and other expenses

   $ 11.8     $ 34.8     $ 7.0     $ 41.8  

2006

        

Interest expense

   $ 14.4     $ 39.1      

Interest income

     (4.4 )     (11.5 )    

Foreign exchange loss (gain)

     0.3       2.5      

Miscellaneous expense (income), net

     0.3       6.0      
                    

Interest and other expenses

   $ 10.6     $ 36.1      

(1) Restatement for discontinued operations.