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2Shareholder’s Letter Manpower Annual Report 2008
Dear Manpower Investor:
It was just twelve months ago that I was writing to you about our
record year in 2007. What a difference a year makes – things have
certainly changed since then. I mentioned in my letter to you last
year that 2008 would likely bring unknowns and potential clouds
that would either move in or move on. Unfortunately, the clouds of
the economic downturn moved in to stay. I committed that we’d
be ready for them and we are. We are ready not only with a
healthy balance sheet, but also with an engaged team, and a
compelling value proposition for our clients.
It can almost go without saying that 2009 will be a challenge.
However, as intimidating as the outlook may be, I can say with
confidence that we are looking at this year as an opportunity. Our
planning process, infrastructure and the strength of our combined
assets will pay off during this economic downturn and even more
so on the other side of it. Throughout this letter I’ll highlight some
of the initiatives that we have put in place and are pursuing that
give our team confidence as we move forward in 2009.
As for 2008, revenues were up slightly to $22 billion, an increase of
about 1 percent in constant currency. This was primarily driven by
the first half of the year, with our European operations performing
quite well. Net earnings decreased to $2.75 per diluted share as it
was negatively impacted by several non-recurring items including
a goodwill impairment charge. Our net earnings, excluding non-
recurring items, was $379 million. Also excluding non-recurring
items, our operating profit was $647 million, for a margin of
3 percent. This reflects a 7 percent decline from the prior year due
to the deleveraging of our expense base in the second half of the
year. Cash flow more than doubled and our cash position improved
nicely to $874 million. During the course of the year, we were able
to purchase 2.2 million shares and maintain our dividend.
We are ready
not only with a
healthy balance
sheet, but also
with an engaged
team, and a
compelling value
proposition for
our clients.