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CONSOLIDATED RESULTS — 2012 COMPARED TO 2011
The following table presents selected consolidated financial data for 2012 as compared to 2011.
Reported Variance in
Constant Variance in
Organic Constant
(in millions, except per share data) 2012 2011 Variance Currency Currency
Revenues from services $ 20,678.0 $ 22,006.0 (6.0)% (1.4)% (2.0)%
Cost of services 17,236.0 18,299.7 (5.8)
Gross profit 3,442.0 3,706.3 (7.1) (3.0) (3.7)
Gross profit margin 16.6% 16.8%
Selling and administrative expenses 3,030.3 3,182.1 (4.8) (0.8) (1.5)
Selling and administrative expenses as a % of revenues 14.7% 14.5%
Operating profit 411.7 524.2 (21.5) (16.5) (17.2)
Operating profit margin 2.0% 2.4%
Net interest expense 35.2 35.5 (0.8)
Other expenses 8.1 8.8 (8.2)
Earnings before income taxes 368.4 479.9 (23.2) (18.2)
Provision for income taxes 170.8 228.3 (25.2)
Effective income tax rate 46.4% 47.6%
Net earnings $ 197.6 $ 251.6 (21.5) (16.3)
Net earnings per share — diluted $ 2.47 $ 3.04 (18.8) (14.1)
Weighted average shares — diluted 80.1 82.8 (3.3)%
The year-over-year decrease in revenues from services of 6.0% (–1.4% in constant currency and –2.0% on an organic
constant currency basis) was attributed to:
• decreased demand for services in several of our markets within Southern Europe and Northern Europe, where revenues
decreased 11.7% (–4.2% in constant currency and –5.3% on an organic constant currency basis) and 6.3% (–1.3% on a
constant currency basis), respectively. Several of our larger markets such as France and Italy experienced revenue
declines of 12.2% (–4.6% in constant currency and –6.1% on an organic constant currency basis) and 15.8% (–8.9% on
a constant currency basis), respectively, due to the current economic environment in these countries;
• revenue decline in the United States of 4.0% primarily due to a decrease of our key account client revenues because of
softening demand as well as stronger pricing discipline on new business opportunities;
• decreased demand for talent management services at Right Management, where these revenues decreased 12.8%
(–11.2% on a constant currency basis); and
• a 4.6% decrease due to the impact of currency exchange rates; partially offset by
• our acquisitions of three entities in APME during April 2011, two acquisitions in Southern Europe at the end of September
2011 and in April 2012, and one acquisition in the Americas during April 2012, which combined to add 0.6% of revenue
growth to our consolidated results;
• Other Americas and APME experienced revenue growth of 9.6% and 1.6%, respectively, on an organic constant currency
basis; and
• increased demand for our outplacement services at Right Management, where these revenues increased 10.1% (12.2%
on a constant currency basis).
MANAGEMENT’S DISCUSSION & ANALYSIS
of financial condition and results of operations
ManpowerGroup 2012 Annual Report Management’s Discussion & Analysis
28