ManpowerGroup 2012 Annual Report Download - page 15

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Our performance in 2012 underscores the
dedication of our teams around the world, as
we achieved revenue of $20.7 billion, down 6%
from 2011, or –1% in constant currency. A bit
underwhelming on face value, this can be partly
attributed to the fact that our largest single market,
France, experienced revenue declines of 4.6%
in local currency in the face of greater market
declines. Maneuvering these hurdles in stride
has made us more confident of our way forward,
as we were able to fight through the challenges
of 2012. Our earnings per share were $2.47, a
19% decrease from 2011. This decline was
minimized by solid expense management, which
we focused on different and more sustainable
ways of doing business to ensure these costs
don’t creep back into our organization. Reorga-
nization charges of $45 million were all focused
on this area. Earnings, without the reorganization
charges, were $230 million. We significantly
improved free
cash flow, with an increase of
$255 million in 2012.
Our gross margin continues to be a central
focus for us, as we must remain competitive in
the marketplace, while ensuring that we do not
drop our quality and differentiation. We are
making headway in gross margin percent,
through pricing discipline and business mix,
but we must make even more progress in 2013.
Manpower is our calling card—make no mistake
about it. Manpower represents the world’s most
trusted brand in the industry, yielding nearly
80% of our $21 billion in revenue. Increasingly
viewed as a transactional service, we have to
pursue more efficient ways of delivering our
Manpower business. We finished the year with
636,000 people on assignment each day—a great
vote of confidence for the vitality of Manpower
throughout the world. Our business in China
and ASEAN continues to grow rapidly. Our U.S.
business has made strategic moves to better
position Manpower in key markets, reversing
some of the declines in gross margin percent,
and actually increasing it. We must continue to
be relentless in our pursuit of sales in Manpower
in small/medium-sized business, as well as the
large accounts. The market opportunity for
Manpower is ours for the taking, as in this era
of certain uncertainty, companies need flexibility
and agility—and they need a workforce that
can keep pace.
Letter to Shareholders ManpowerGroup 2012 Annual Report 13