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): October 17, 2006
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 October 17, 2006, we issued a press release announcing our results of operations for the three and nine-month period ended September 30, 2006. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| Item 9.01. | Exhibits. |
| Exhibit No. | Description | |
| 99.1 | Press Release dated October 17, 2006 | |
| 99.2 | Presentation materials for October 17, 2006 conference call | |
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: October 17, 2006 | 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 October 17, 2006 | |
| 99.2 | Presentation materials for October 17, 2006 conference call | |
Exhibit 99.1
[MANPOWER logo]
| FOR IMMEDIATE RELEASE | Contact: Mike Van Handel Manpower Inc. +1.414.906.6305 michael.vanhandel@manpower.com |
Manpower Reports 3rd Quarter 2006 Results
MILWAUKEE, WI, USA, October 17, 2006 – Manpower Inc. (NYSE: MAN) today reported that earnings per diluted share for the three months ended September 30, 2006 increased 33 percent to $1.16 from 87 cents in the prior year period. Net income in the quarter increased to $100.6 million from $76.3 million a year earlier. Revenues for the third quarter totaled $4.6 billion, an increase of 12 percent from the year-earlier period.
Results for the third quarter were positively affected by relatively stronger foreign currencies compared to the prior year period. Foreign currency exchange rates had a positive impact of 4 cents for the quarter. On a constant currency basis, earnings per diluted share increased 29 percent on a 9 percent improvement in revenues.
Jeffrey A. Joerres, Manpower Chairman and Chief Executive Officer, said, “The Manpower team is hitting full stride when it comes to executing. Our European operations minus France improved operating unit profit in U.S. dollars by 54%; U.S. improved operating unit profit by 27%, while France improved in U.S. dollars by 22%. We are leveraging our growth which is evident by our revenue growth in U.S. dollars of 12%, resulting in net income growth in U.S. dollars of 32%.
“Revenue continues to be stable throughout many of the major geographies. Our European operations minus France led the way with a revenue increase in constant currency of 14% over third quarter of 2005. Fast growing countries include the Netherlands, Nordics, Italy, China, India and all of Eastern Europe.
“We are anticipating the fourth quarter of 2006 diluted earnings per share to be in the range of $1.14 to $1.18, which includes an estimated positive currency impact of 4 cents,” Joerres stated.
- MORE -
Manpower Inc. Reports 3rd Quarter Results/Page 2
Earnings per diluted share for the nine months ended September 30, 2006 were $2.65 compared to $1.88 per diluted share in 2005. Net income was $233.6 million compared to $171.0 million the prior year. Revenues for the nine-month period were $13.0 billion, an increase of 9 percent from the prior year. Foreign currency exchange rates had a negative impact of 2 cents for the nine-month period.
Included in the 2006 nine-month period was a 27 cents per diluted share gain on the sale of a payroll processing business in Sweden, and a 16 cents per diluted share charge related to reorganization and a global cost reduction initiative.
In conjunction with its third quarter earnings release, Manpower will broadcast its conference call live over the Internet on October 17, 2006 at 7:30 a.m. CDT (8:30 a.m. EDT). 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 $16 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 72 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 September 30 | ||||||||||||
| 2006 | 2005 | % Variance | ||||||||||
| Amount Reported |
Constant Currency |
|||||||||||
| (Unaudited) | ||||||||||||
| Revenues from services (a) |
$ | 4,644.8 | $ | 4,144.8 | 12.1 | % | 8.8 | % | ||||
| Cost of services |
3,800.6 | 3,388.2 | 12.2 | % | ||||||||
| Gross profit |
844.2 | 756.6 | 11.6 | % | 8.6 | % | ||||||
| Selling and administrative expenses |
675.3 | 624.6 | 8.1 | % | 5.3 | % | ||||||
| Operating profit |
168.9 | 132.0 | 28.0 | % | 23.9 | % | ||||||
| Interest and other expenses |
10.6 | 11.9 | -10.5 | % | ||||||||
| Earnings before income taxes |
158.3 | 120.1 | 31.8 | % | ||||||||
| Provision for income taxes |
57.7 | 43.8 | 31.8 | % | ||||||||
| Net earnings |
$ | 100.6 | $ | 76.3 | 31.8 | % | 27.3 | % | ||||
| Net earnings per share - basic |
$ | 1.18 | $ | 0.88 | 34.1 | % | ||||||
| Net earnings per share - diluted |
$ | 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 | % | ||||||||
| (a) | Revenues from services include fees received from our franchise offices of $9.6 million for the three months ended September 30, 2006 and 2005. These fees are primarily based on revenues generated by the franchise offices, which were $392.3 million and $396.6 million for the three months ended September 30, 2006 and 2005, respectively. |
Manpower Inc.
Operating Unit Results
(In millions)
| Three Months Ended September 30 | ||||||||||||||
| 2006 | 2005 | % Variance | ||||||||||||
| Amount Reported |
Constant Currency |
|||||||||||||
| (Unaudited) | ||||||||||||||
| Revenues from Services: (a) |
||||||||||||||
| United States (b) |
$ | 542.1 | $ | 531.5 | 2.0 | % | 2.0 | % | ||||||
| France |
1,654.0 | 1,479.3 | 11.8 | % | 7.0 | % | ||||||||
| EMEA |
1,668.0 | 1,400.8 | 19.1 | % | 13.9 | % | ||||||||
| Jefferson Wells |
93.9 | 103.9 | -9.6 | % | -9.6 | % | ||||||||
| Right Management |
91.4 | 96.0 | -4.8 | % | -7.0 | % | ||||||||
| Other Operations |
595.4 | 533.3 | 11.6 | % | 13.4 | % | ||||||||
| $ | 4,644.8 | $ | 4,144.8 | 12.1 | % | 8.8 | % | |||||||
| Operating Unit Profit: (a) |
||||||||||||||
| United States |
$ | 28.6 | $ | 22.6 | 26.7 | % | 26.7 | % | ||||||
| France |
62.0 | 50.6 | 22.4 | % | 17.1 | % | ||||||||
| EMEA |
71.0 | 46.2 | 53.8 | % | 47.3 | % | ||||||||
| Jefferson Wells |
10.0 | 11.5 | -13.7 | % | -13.7 | % | ||||||||
| Right Management |
1.8 | 2.1 | -12.0 | % | -16.8 | % | ||||||||
| Other Operations |
16.7 | 16.6 | 0.8 | % | 3.2 | % | ||||||||
| 190.1 | 149.6 | |||||||||||||
| Corporate expenses |
17.9 | 14.3 | ||||||||||||
| Amortization of intangible assets |
3.3 | 3.3 | ||||||||||||
| Operating profit |
168.9 | 132.0 | 28.0 | % | 23.9 | % | ||||||||
| Interest and other expenses (c) |
10.6 | 11.9 | ||||||||||||
| Earnings before income taxes |
$ | 158.3 | $ | 120.1 | ||||||||||
| (a) Certain Eastern European countries previously reported in France are now reported in EMEA due to a change in management structure. All previously reported results for France and EMEA have been restated to conform to the current presentation. |
| |||||||||||||
| (b) In the United States, revenues from services include fees received from the related franchise offices of $6.6 million and $6.7 million for the three months ended September 30, 2006 and 2005, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $285.9 million and $310.7 million for the three months ended September 30, 2006 and 2005, respectively. |
| |||||||||||||
| (c) The components of interest and other expenses were: |
| |||||||||||||
| Interest expense |
$ | 14.4 | $ | 12.5 | ||||||||||
| Interest income |
(4.4 | ) | (2.0 | ) | ||||||||||
| Foreign exchange losses (gains) |
0.3 | (0.2 | ) | |||||||||||
| Miscellaneous expenses, net |
0.3 | 1.6 | ||||||||||||
| $ | 10.6 | $ | 11.9 | |||||||||||
Manpower Inc.
Results of Operations
(In millions, except per share data)
| Nine Months Ended September 30 | ||||||||||||
| 2006 | 2005 | % Variance | ||||||||||
| Amount Reported |
Constant Currency |
|||||||||||
| (Unaudited) | ||||||||||||
| Revenues from services (a) |
$ | 13,014.7 | $ | 11,957.2 | 8.8 | % | 10.0 | % | ||||
| Cost of services |
10,636.7 | 9,779.4 | 8.8 | % | ||||||||
| Gross profit |
2,378.0 | 2,177.8 | 9.2 | % | 10.3 | % | ||||||
| Selling and administrative expenses |
2,010.3 | 1,873.6 | 7.3 | % | 8.6 | % | ||||||
| Operating profit |
367.7 | 304.2 | 20.9 | % | 21.1 | % | ||||||
| Interest and other expenses |
6.8 | 34.9 | N/A | |||||||||
| Earnings before income taxes |
360.9 | 269.3 | 34.0 | % | ||||||||
| Provision for income taxes |
127.3 | 98.3 | 29.6 | % | ||||||||
| Net earnings |
$ | 233.6 | $ | 171.0 | 36.6 | % | 37.2 | % | ||||
| Net earnings per share - basic |
$ | 2.70 | $ | 1.93 | 39.9 | % | ||||||
| Net earnings per share - diluted |
$ | 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 | % | ||||||||
| (a) | Revenues from services include fees received from our franchise offices of $26.4 million and $26.7 million for the nine months ended September 30, 2006 and 2005, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,143.8 million and $1,122.1 million for the nine months ended September 30, 2006 and 2005, respectively. |
Manpower Inc.
Operating Unit Results
(In millions)
| Nine Months Ended September 30 | ||||||||||||||
| 2006 | 2005 | % Variance | ||||||||||||
| Amount Reported |
Constant Currency |
|||||||||||||
| (Unaudited) | ||||||||||||||
| Revenues from Services: (a) |
||||||||||||||
| United States (b) |
$ | 1,587.0 | $ | 1,514.1 | 4.8 | % | 4.8 | % | ||||||
| France |
4,430.1 | 4,114.3 | 7.7 | % | 8.6 | % | ||||||||
| EMEA |
4,691.0 | 4,173.8 | 12.4 | % | 13.8 | % | ||||||||
| Jefferson Wells |
288.2 | 290.1 | -0.6 | % | -0.6 | % | ||||||||
| Right Management |
291.3 | 308.5 | -5.6 | % | -5.1 | % | ||||||||
| Other Operations |
1,727.1 | 1,556.4 | 11.0 | % | 13.9 | % | ||||||||
| $ | 13,014.7 | $ | 11,957.2 | 8.8 | % | 10.0 | % | |||||||
| Operating Unit Profit: (a) |
||||||||||||||
| United States |
$ | 60.6 | $ | 45.5 | 33.3 | % | 33.3 | % | ||||||
| France |
142.1 | 121.0 | 17.4 | % | 17.2 | % | ||||||||
| EMEA |
145.1 | 98.2 | 47.7 | % | 46.6 | % | ||||||||
| Jefferson Wells |
25.7 | 28.9 | -11.2 | % | -11.2 | % | ||||||||
| Right Management |
17.2 | 21.2 | -18.8 | % | -20.3 | % | ||||||||
| Other Operations |
49.4 | 42.3 | 17.1 | % | 22.1 | % | ||||||||
| 440.1 | 357.1 | |||||||||||||
| Corporate expenses |
62.6 | 43.1 | ||||||||||||
| Amortization of intangible assets |
9.8 | 9.8 | ||||||||||||
| Operating profit |
367.7 | 304.2 | 20.9 | % | 21.1 | % | ||||||||
| Interest and other expenses (c) |
6.8 | 34.9 | ||||||||||||
| Earnings before income taxes |
$ | 360.9 | $ | 269.3 | ||||||||||
| (a) Certain Eastern European countries previously reported in France are now reported in EMEA due to a change in management structure. All previously reported results for France and EMEA have been restated to conform to the current presentation. |
| |||||||||||||
| (b) In the United States, revenues from services include fees received from the related franchise offices of $17.9 million and $18.4 million for the nine months ended September 30, 2006 and 2005, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $860.1 million and $885.1 million for the nine months ended September 30, 2006 and 2005, respectively. |
| |||||||||||||
| (c) The components of interest and other (income) expenses were: |
| |||||||||||||
| Interest expense |
$ | 39.1 | $ | 34.8 | ||||||||||
| Interest income |
(11.5 | ) | (6.4 | ) | ||||||||||
| Foreign exchange losses |
2.5 | — | ||||||||||||
| Miscellaneous (income) expense, net |
(23.3 | ) | 6.5 | |||||||||||
| $ | 6.8 | $ | 34.9 | |||||||||||
Manpower Inc.
Consolidated Balance Sheets
(In millions)
| Sep. 30 2006 |
Dec. 31 2005 |
|||||||
| (Unaudited) | ||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 484.5 | $ | 454.9 | ||||
| Accounts receivable, net |
3,772.1 | 3,208.2 | ||||||
| Prepaid expenses and other assets |
104.4 | 107.5 | ||||||
| Future income tax benefits |
95.5 | 71.1 | ||||||
| Total current assets |
4,456.5 | 3,841.7 | ||||||
| Other assets: |
||||||||
| Goodwill and other intangible assets, net |
1,279.9 | 1,256.5 | ||||||
| Other assets |
308.5 | 273.8 | ||||||
| Total other assets |
1,588.4 | 1,530.3 | ||||||
| Property and equipment: |
||||||||
| Land, buildings, leasehold improvements and equipment |
686.0 | 642.4 | ||||||
| Less: accumulated depreciation and amortization |
491.4 | 446.0 | ||||||
| Net property and equipment |
194.6 | 196.4 | ||||||
| $ | 6,239.5 | $ | 5,568.4 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 883.6 | $ | 685.4 | ||||
| Employee compensation payable |
175.3 | 150.6 | ||||||
| Accrued liabilities |
598.0 | 435.4 | ||||||
| Accrued payroll taxes and insurance |
629.6 | 607.2 | ||||||
| Value added taxes payable |
524.4 | 441.9 | ||||||
| Short-term borrowings and current maturities of long-term debt |
28.4 | 260.0 | ||||||
| Total current liabilities |
2,839.3 | 2,580.5 | ||||||
| Other liabilities: |
||||||||
| Long-term debt |
759.9 | 475.0 | ||||||
| Other long-term liabilities |
399.6 | 366.3 | ||||||
| Total other liabilities |
1,159.5 | 841.3 | ||||||
| Shareholders’ equity: |
||||||||
| Common stock |
1.0 | 1.0 | ||||||
| Capital in excess of par value |
2,397.8 | 2,346.7 | ||||||
| Retained earnings |
479.8 | 269.9 | ||||||
| Accumulated other comprehensive income (loss) |
47.8 | (11.0 | ) | |||||
| Treasury stock, at cost |
(685.7 | ) | (460.0 | ) | ||||
| Total shareholders’ equity |
2,240.7 | 2,146.6 | ||||||
| Total liabilities and shareholders’ equity |
$ | 6,239.5 | $ | 5,568.4 | ||||
Manpower Inc.
Consolidated Statements of Cash Flows
(In millions)
| Nine Months Ended September 30 |
||||||||
| 2006 | 2005 | |||||||
| (Unaudited) | ||||||||
| Cash Flows from Operating Activities: |
||||||||
| Net earnings |
$ | 233.6 | $ | 171.0 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
65.8 | 67.7 | ||||||
| Amortization of discount on convertible debentures |
— | 1.9 | ||||||
| Deferred income taxes |
(27.6 | ) | (10.2 | ) | ||||
| Provision for doubtful accounts |
18.6 | 16.9 | ||||||
| Stock based compensation |
15.9 | 1.2 | ||||||
| Excess tax benefit on exercise of stock options |
(1.6 | ) | — | |||||
| Other non-operating gains |
(29.3 | ) | — | |||||
| Changes in operating assets and liabilities excluding the impact of acquisitions: |
||||||||
| Accounts receivable |
(396.2 | ) | (307.1 | ) | ||||
| Other assets |
22.7 | (30.2 | ) | |||||
| Other liabilities |
329.6 | 263.8 | ||||||
| Cash provided by operating activities |
231.5 | 175.0 | ||||||
| Cash Flows from Investing Activities: |
||||||||
| Capital expenditures |
(47.3 | ) | (55.9 | ) | ||||
| Acquisitions of businesses, net of cash acquired |
(7.8 | ) | (3.5 | ) | ||||
| Proceeds from sale of business |
29.6 | — | ||||||
| Proceeds from sale of an equity interest |
8.8 | — | ||||||
| Proceeds from the sale of property and equipment |
3.6 | 4.5 | ||||||
| Cash used by investing activities |
(13.1 | ) | (54.9 | ) | ||||
| Cash Flows from Financing Activities: |
||||||||
| Net borrowings of short-term facilities and long-term debt |
(0.6 | ) | 181.0 | |||||
| Cash paid to settle convertible debentures |
— | (206.6 | ) | |||||
| Proceeds from settlement of swap agreements |
— | 50.7 | ||||||
| Proceeds from stock option and purchase plans |
45.2 | 17.7 | ||||||
| Excess tax benefit on exercise of stock options |
1.6 | — | ||||||
| Repurchases of common stock |
(235.9 | ) | (203.5 | ) | ||||
| Dividends paid |
(23.7 | ) | (17.6 | ) | ||||
| Cash used by financing activities |
(213.4 | ) | (178.3 | ) | ||||
| Effect of exchange rate changes on cash |
24.6 | (41.9 | ) | |||||
| Change in cash and cash equivalents |
29.6 | (100.1 | ) | |||||
| Cash and cash equivalents, beginning of period |
454.9 | 531.8 | ||||||
| Cash and cash equivalents, end of period |
$ | 484.5 | $ | 431.7 | ||||
 Manpower Inc. 2006 3 rd Quarter Results Now Next October 17, 2006 Exhibit 99.2 |
 2 Manpower Inc. 2006 3 rd 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 3 rd Quarter Results Consolidated Financial Highlights Operating Profit $169M OP Margin 3.6% 29% CC Revenue $4.6B Gross Margin 18.2% EPS $1.16 12% 9% CC 10 bps 40 bps 33% 28% 24% CC Q3 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 3 rd Quarter Results 18.18% 18.25% 16% 17% 18% 19% Q3 2005 Temporary Recruitment Permanent Recruitment Mix - Specialty Q3 2006 - 0.44% + 0.25% + 0.12% Consolidated Gross Profit Margin Change |
 5 Manpower Inc. 2006 3 rd Quarter Results United States Segment Q3 Financial Highlights 2% OUP Margin 5.3% 100 bps Revenue $542M OUP $29M 27% 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 3 rd Quarter Results contemporary working France Segment Q3 Financial Highlights OUP Margin 3.7% Revenue $1.7B OUP $62M 12% 7% CC 30 bps 22% 17% CC |
 7 Manpower Inc. 2006 3 rd Quarter Results EMEA Segment contemporary working Q3 Financial Highlights OUP Margin 4.3% Revenue $1.7B OUP $71M 19% 14% CC 100 bps 54% 47% CC |
 8 Manpower Inc. 2006 3 rd Quarter Results 13% 21% 31% 26% 21% 25% 8% 8% 16% 25% -1% 21% 30% 26% 13% 4% Other Netherlands Spain Germany Elan UK - Manpower Italy Nordics EMEA – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 18% 17% 15% 12% 8% 7% 7% 16% |
 9 Manpower Inc. 2006 3 rd Quarter Results Jefferson Wells Segment contemporary working Q3 Financial Highlights OUP Margin 10.6% Revenue $94M OUP $10M 50 bps 10% 14% |
 10 Manpower Inc. 2006 3 rd Quarter Results Right Management Segment contemporary working Q3 Financial Highlights OUP Margin 2.0% Revenue $91M OUP $2M 5% 7% CC 20 bps 12% 17% CC |
 11 Manpower Inc. 2006 3 rd Quarter Results Other Operations Segment contemporary working Q3 Financial Highlights OUP Margin 2.8% Revenue $595M OUP $17M 12% 13% CC 30 bps 1% 3% CC |
 12 Manpower Inc. 2006 3 rd Quarter Results 30% 29% 2% 23% 3% 1% -1% 20% Other Australia/NZ Mexico Japan Other Operations – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 35% 15% 15% 35% |
 13 Manpower Inc. 2006 3 rd Quarter Results Financial Highlights |
 14 Manpower Inc. 2006 3 rd Quarter Results 416 370 280 303 842 902 735 788 0 200 400 600 800 1,000 1,200 2003 2004 2005 Q3 2006 39% 29% 26% 26% 0% 10% 20% 30% 40% 2003 2004 2005 Q3 2006 Total Debt Net Debt Balance Sheet Highlights Total Debt ($ in millions) Total Debt to Total Capitalization |
 15 Manpower Inc. 2006 3 rd Quarter Results * 4,000,000 shares in 2006 and 5,000,000 shares in 2005 Proceeds from Sale of Business Cash Flow Summary – Nine Months 2006 2005 Cash from Operations 231 175 Capital Expenditures (47) (56) Free Cash Flow 184 119 Share Repurchases * (236) (204) Change in Debt (1) 25 Other 8 (58) Change in Cash 30 (100) ($ in millions) 30 - Proceeds from Stock Option and Purchase Plans 45 18 |
 16 Manpower Inc. 2006 3 rd Quarter Results Up 17-19% Fourth Quarter Outlook Revenue U.S. Up 1-3% France Up 13-15% (Up 7-9% CC) EMEA (Up 11-13% CC) Jefferson Wells Right Up/Down 1% (Down 2-4% CC) Other Up 11-13% (Up 13-15% CC) Total Up 12-14% (Up 8-10% CC) Gross Profit Margin 18.4 - 18.6% Operating Profit Margin 3.5 - 3.7% Tax Rate 36.5% EPS $1.14 - $1.18 (Pos. $.04 Currency) Down 7-9% |
 2006
3 rd Quarter Results Questions? Answers October 17, 2006 * * |