ManpowerGroup, a staffing agency based in Milwaukee, announced a fourth-quarter loss due to declining revenue and goodwill-impairment charges. The company also provided a muted growth forecast, citing weak demand for its services in the U.S.
During the fourth quarter, ManpowerGroup reported a loss of $84.5 million, or $1.73 per share, compared to a profit of $48.7 million, or 95 cents per share, in the same period last year. However, when excluding the impact of goodwill and other impairment charges and Argentinian currency losses, the company's earnings amounted to $1.45 per share, surpassing the average estimate of $1.19 per share.
Revenue for the fourth quarter declined by 3.7% to $4.63 billion, slightly above the average Wall Street projection of $4.57 billion. In particular, U.S. revenue experienced a significant dip of 14% to $702.3 million. This decline can be attributed to the fact that job seekers now have ample job opportunities in the U.S., reducing the need for temporary staffing agencies.
ManpowerGroup acknowledged that the North American and European markets continue to pose challenges, whereas Latin America, Asia, the Pacific region, and the Middle East demonstrate stronger demand for their services.
Looking ahead, the company provided an adjusted first-quarter earnings forecast ranging between 88 cents and 98 cents per share. This forecast excludes restructuring costs, charges related to winding down their Proservia unit, and any effects from Argentinian currency translation. In the first quarter of 2023, ManpowerGroup recorded earnings of $1.51 per share.
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