ManpowerGroup 2009 Annual Report Download - page 30

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28 Manpower 2009 Annual Report Management’s Discussion & Analysis
Amounts represent 2008
Percentages represent 2008 compared to 2007
Reported
Amount
(in millions)
Reported
Variance
Impact of
Currency
Variance
in Constant
Currency
Impact of
Acquisitions
(In Constant
Currency)
Organic
Constant
Currency
Variance
Revenues from Services
Americas:
United States $ 1,945.4 (0.9)% –% (0.9)% 10.4% (11.3)%
Other Americas 1,129.8 12.2 3.7 8.5 – 8.5
3,075.2 3.6 1.3 2.3 6.9 (4.6)
France 6,935.6 (1.3) 7.4 (8.7) – (8.7)
EMEA:
Italy 1,519.5 8.7 8.2 0.5 – 0.5
Other EMEA 7,422.0 10.2 2.1 8.1 1.6 6.5
8,941.5 9.9 3.1 6.8 1.3 5.5
Asia Pacifi c 1,841.6 14.2 8.3 5.9 1.5 4.4
Right Management 452.2 9.7 0.3 9.4 0.6 8.8
Jefferson Wells 291.0 (12.4) – (12.4) 0.2 (12.6)
Manpower Inc. $ 21,537.1 5.1% 4.6% 0.5% 1.7% (1.2)%
Gross Profi t - Manpower Inc. $ 4,086.9 6.6% 4.3% 2.3% 2.5% (0.2)%
Operating Unit Profi t (Loss)
Americas:
United States $ 32.2 (59.8)% –% (59.8)% 2.9% (62.7)%
Other Americas 25.9 (20.7) 4.2 (24.9) – (24.9)
58.1 (48.5) 1.2 (49.7) 2.1 (51.8)
France 299.0 (23.4) 3.5 (26.9) – (26.9)
EMEA:
Italy 120.3 16.0 8.7 7.3 – 7.3
Other EMEA 233.8 (3.6) 3.7 (7.3) 3.4 (10.7)
354.1 2.3 5.3 (3.0) 2.3 (5.3)
Asia Pacifi c 29.2 (29.5) 11.8 (41.3) (11.2) (30.1)
Right Management 44.7 28.2 (1.1) 29.3 1.6 27.7
Jefferson Wells (19.6) (278.2) – (278.2) (5.1) (273.1)
Operating Profi t - Manpower Inc. 493.5 (39.2)% 4.6% (43.8)% 0.8% (44.6)%
Cash Sources And Uses
Cash used to fund our operations is primarily generated through operating activities and our existing credit facilities. We
believe that our available cash and our existing credit facilities are suffi cient to cover our future cash needs for the forseeable
future. We assess and monitor our liquidity and capital resources globally. We use a global cash pooling arrangement,
intercompany lending, and some local credit lines to meet funding needs and allocate our capital resources among our
various entities. We anticipate cash repatriations to the United States from certain international subsidiaries and have
provided for deferred taxes related to those foreign earnings not considered to be permanently invested. As of December 31,
2009 we have identifi ed approximately $580.7 million of non-U.S. funds that will likely be repatriated, the majority of which is
related to Manpower France. We may repatriate additional funds in the future as cash needs arise.
Our principal ongoing cash needs are to fi nance working capital, capital expenditures, debt payments, interest expense,
share repurchases, dividends and acquisitions. Working capital is primarily in the form of trade receivables, which generally
increase as revenues increase. The amount of fi nancing necessary to support revenue growth depends on receivables
turnover, which differs in each market where we operate.
During 2009, cash provided by operating activities was $414.3 million, compared to $792.0 million for 2008 and $432.2
million for 2007. The decrease in 2009 from 2008 is primarily attributable to the lower operating earnings. The increase in
2008 from 2007 was primarily due to the change in working capital, as accounts receivable declined signifi cantly in the fourth
quarter of 2008 as a result of a decrease in business volumes.
Management’s Discussion & Analysis
of fi nancial condition and results of operations