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in the lower-margin talent management business. In 2011, gross profit margin decreased due to the business mix change,
as we saw declines in the higher margin outplacement services.
In 2012, selling and administrative expenses decreased 1.7% (0.4% increase in constant currency) compared to 2011 as the
cost savings from the reorganization plan to streamline the office infrastructure and management organization favorably
impacted expense levels. 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.
OUP margin for Right Management was 4.1%, –0.4% and 0.9% for 2012, 2011 and 2010, respectively. The OUP margin for
2012 was higher due to the greater mix of outplacement business compared to 2011 as well as the decrease in selling and
administrative expenses due to cost savings from the reorganization plan noted above, offset, in part, by the $10.9 million
of reorganization costs incurred in 2012 compared to $5.5 million in 2011. OUP margin in 2011 was unfavorably impacted
by the significant decrease in our career management business as well as the reorganization costs incurred 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 27 for further information.)
Amounts represent 2012
Percentages represent 2012 compared to 2011
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 $ 3,010.5 (4.0)% —% (4.0)% —% (4.0)%
Other Americas 1,585.4 4.8 (5.1) 9.9 0.3 9.6
4,595.9 (1.2) (1.7) 0.5 0.1 0.4
Southern Europe:
France 5,425.6 (12.2) (7.6) (4.6) 1.5 (6.1)
Italy 1,056.8 (15.8) (6.9) (8.9) — (8.9)
Other Southern Europe 768.5 (1.1) (8.0) 6.9 — 6.9
7,250.9 (11.7) (7.5) (4.2) 1.1 (5.3)
Northern Europe 5,773.9 (6.3) (5.0) (1.3) — (1.3)
APME 2,728.8 2.5 (0.6) 3.1 1.5 1.6
Right Management 328.5 1.5 (1.9) 3.4 — 3.4
ManpowerGroup $ 20,678.0 (6.0)% (4.6)% (1.4)% 0.6% (2.0)%
Gross Profit — ManpowerGroup $ 3,442.0 (7.1)% (4.1)% (3.0)% 0.7% (3.7)%
Operating Unit Profit
Americas:
United States $ 60.8 (35.4)% —% (35.4)% —% (35.4)%
Other Americas 50.6 5.7 (3.4) 9.1 1.1 8.0
111.4 (21.6) (1.2) (20.4) 0.4 (20.8)
Southern Europe:
France 56.7 (33.4) (6.8) (26.6) 2.2 (28.8)
Italy 45.4 (38.7) (5.3) (33.4) — (33.4)
Other Southern Europe 10.1 (6.8) (7.8) 1.0 — 1.0
112.2 (34.0) (6.2) (27.8) 1.1 (28.9)
Northern Europe 159.8 (24.8) (3.8) (21.0) — (21.0)
APME 90.7 15.2 (1.0) 16.2 1.6 14.6
Right Management 13.4 N/A N/A N/A — N/A
Operating Profit — ManpowerGroup $ 411.7 (21.5)% (5.0)% (16.5)% 0.7% (17.2)%
Management’s Discussion & Analysis ManpowerGroup 2012 Annual Report 35