ManpowerGroup 2014 Annual Report Download - page 28

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26
Consolidated Results — 2014 Compared to 2013
The following table presents selected consolidated financial data for 2014 as compared to 2013.
Reported
Variance in
Constant
Variance in
Organic Constant
(in millions, except per share data) 2014 2013 Variance Currency Currency
Revenues from services $ 20,762.8 $ 20,250.5 2.5% 4.0% 3.6%
Cost of services 17,274.6 16,883.8 2.3 3.8
Gross profit 3,488.2 3,366.7 3.6 5.2 4.1
Gross profit margin 16.8% 16.6%
Selling and administrative expenses 2,768.3 2,854.8 (3.0) (1.6) (2.6)
Selling and administrative expenses as a % of revenues 13.3% 14.1%
Operating profit 719.9 511.9 40.6 43.5 41.3
Operating profit margin 3.5% 2.5%
Net interest expense 31.5 33.4
Other expenses 6.8 3.0
Earnings before income taxes 681.6 475.5 43.4 45.9
Provision for income taxes 254.0 187.5 35.5
Effective income tax rate 37.3% 39.4%
Net earnings $ 427.6 $ 288.0 48.5 51.4
Net earnings per share — diluted $ 5.30 $ 3.62 46.4 49.2
Weighted average shares — diluted 80.7 79.6 1.5%
The year-over-year increase in revenues from services of 2.5% (4.0% in constant currency and 3.6% in organic constant
currency) was attributed to:
• increased demand for services in several of our markets within Southern Europe and Northern Europe, where revenues
increased 3.8% (3.8% in constant currency and 3.6% in organic constant currency) and 5.4% (5.7% in constant currency
and 4.4% in organic constant currency), respectively. This included revenue increases in our larger markets of France and
Italy of 1.3% (1.2% in constant currency) and 8.4% (8.5% in constant currency and 8.1% in organic constant currency),
respectively, as we experienced stabilization in France, and improving demand in Italy, for much of the period. We also
experienced organic constant currency revenue growth in Spain, the United Kingdom, and the Netherlands of 24.2%,
12.7%, and 5.1%, respectively; and
• revenue increase in the United States of 4.0% driven by growth in our larger national accounts and in the small/medium-
sized business within our Manpower business as well as solid growth in our MSP and RPO offerings within the
ManpowerGroup Solutions business; partially offset by
• revenue decrease in APME of 4.9% (–0.1% in constant currency and –0.6% in organic constant currency) primarily due to
a decrease in our staffing/interim business in Japan as we were challenged to recruit candidates in a tight labor market
even though we experienced gradual improvement in demand for our staffing/interim services, and in China where
legislative changes restricted the use of temporary employment and we recently experienced a softer demand in the market;
• decreased demand for outplacement services at Right Management, where these revenues decreased 10.2% (–9.8% in
constant currency); and
• our acquisitions in Southern Europe, Northern Europe and APME, which combined to add 0.4% of revenue growth to our
consolidated results.
Management’s Discussion & Analysis
MANAGEMENT’S DISCUSSION & ANALYSIS
of financial condition and results of operations