ManpowerGroup 2011 Annual Report Download - page 33

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Management’s Discussion & Analysis ManpowerGroup 2011 Annual Report 31
In 2011, Selling and administrative expenses decreased 16.5% in constant currency compared to 2010 as costs were
reduced in response to the lower 2011 revenue volumes. In 2010, Selling and administrative expenses decreased 17.2% in
constant currency compared to 2009 primarily due to cost reduction efforts and a reduction in variable incentive-based
compensation costs due to the decline in profitability. Offsetting these decreases, Right Management recorded $5.5 million
and $19.4 million of reorganization costs as we reorganized our operations in response to the lower demand for career
management services in 2011 and 2010, respectively.
OUP margin for Right Management was -0.4%, 0.9% and 20.3% for 2011, 2010 and 2009, respectively. The prior year OUP
margins were higher given the greater mix of career management business in 2010 and 2009. OUP margin in 2011 and
2010 was unfavorably impacted by the significant decrease in our career management business as well as incurring
reorganization costs during the year.
Financial Measures — Constant Currency And Organic
Constant Currency Reconciliation
Certain constant currency and organic constant currency percent variances are discussed throughout this annual report.
A reconciliation to the percent variances calculated based on our annual financial results is provided below. (See Constant
Currency And Organic Constant Currency on page 23 for further information.)
Amounts rep resen t 2 011
Pe rcen ta ge s r epre se nt 2 011 co mp are d to 20 10
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 $ 3,137.3 12.7 % – % 12.7 % 6.5 % 6.2 %
Other Americas 1,512.1 19.5 1.1 18.4 – 18.4
4,649.4 14.8 0.3 14.5 4.6 9.9
Southern Europe:
France 6,179.1 18.6 6.0 12.6 0.5 12.1
Italy 1,255.8 20.3 6.1 14.2 – 14.2
Other Southern Europe 776.9 11.2 4.4 6.8 – 6.8
8,211.8 18.1 5.8 12.3 0.4 11.9
Northern Europe 6,159.4 15.3 6.0 9.3 – 9.3
APME 2,661.7 24.0 9.8 14.2 6.6 7.6
Right Management 323.7 (13.6) 3.0 (16.6) – (16.6)
ManpowerGroup $ 22,006.0 16.6 % 5.0 % 11.6 % 1.9 % 9.7 %
Gross Profit — ManpowerGroup $ 3,706.3 14.2 % 4.8 % 9.4 % 2.0 % 7.4 %
Operating Unit Profit
Americas:
United States $ 94.1 119.8 % – % 119.8 % 21.6 % 98.2 %
Other Americas 47.8 31.2 0.5 30.7 – 30.7
141.9 79.0 0.2 78.8 10.0 68.8
Southern Europe:
France 85.2 80.7 11.3 69.4 3.5 65.9
Italy 74.1 55.9 8.7 47.2 – 47.2
Other Southern Europe 10.8 51.5 4.0 47.5 – 47.5
170.1 67.1 9.6 57.5 1.6 55.9
Northern Europe 212.6 41.5 8.7 32.8 – 32.8
APME 78.8 66.7 11.9 54.8 10.6 44.2
Right Management (1.4) (139.4) (2.7) (136.7) – (136.7)
Operating Profit — ManpowerGroup $ 524.2 529.6 % 27.1 % 502.5 % 7.2 % 495.3 %