Manpower Reports 2nd Quarter and First Half 2010 Results

Manpower Inc.

Results of Operations

(In millions, except per share data)

Three Months Ended June 30

% Variance

Amount

Constant

2010

2009

Reported

Currency

(Unaudited)

Revenues from services (a) (b)

$             4,585.6

$           3,793.5

20.9%

23.7%

Cost of services

3,788.6

3,101.2

22.2%

25.1%

    Gross profit

797.0

692.3

15.1%

17.4%

Selling and administrative expenses

717.9

673.3

6.6%

8.6%

    Operating profit

79.1

19.0

314.9%

331.0%

Interest and other expenses

11.9

10.8

10.2%

    Earnings before income taxes

67.2

8.2

712.1%

736.2%

Provision for income taxes

34.5

(8.1)

N/A

    Net earnings

$                  32.7

$                16.3

99.7%

105.6%

Net earnings per share - basic

$                  0.40

$                0.21

90.5%

Net earnings per share - diluted

$                  0.40

$                0.21

90.5%

157.0%

Weighted average shares - basic

81.5

78.3

4.1%

Weighted average shares - diluted

82.5

78.8

4.7%

(a)  Revenues from services include fees received from our franchise offices of $5.8 million for the three months ended
      June 30, 2010 and 2009. These fees are primarily based on revenues generated by the franchise offices, which
      were $237.3 million and $174.1 million for the three months ended June 30, 2010 and 2009, respectively.

(b)  Our 2009 results have been restated as disclosed in Note 16 to the Consolidated Financial Statements included in
       our 2009 Annual Report to Shareholders.

Manpower Inc.

Operating Unit Results

(In millions)

Three Months Ended June 30

% Variance

Amount

Constant

2010

2009

Reported

Currency

(Unaudited)

Revenues from Services:

 Americas:

     United States  (a)

$                     686.0

$                   374.3

83.3%

83.3%

     Other Americas

306.1

220.7

38.6%

30.9%

992.1

595.0

66.7%

63.9%

 France

1,255.9

1,100.1

14.2%

22.6%

 EMEA:

     Italy

258.8

230.1

12.5%

20.6%

     Other EMEA (b)

1,433.7

1,255.9

14.2%

18.0%

1,692.5

1,486.0

13.9%

18.4%

 Asia Pacific

505.7

406.2

24.5%

15.4%

 Right Management

98.8

158.1

-37.5%

-37.8%

 Jefferson Wells

40.6

48.1

-15.8%

-15.8%

$                  4,585.6

$                3,793.5

20.9%

23.7%

Operating Unit (Loss) Profit:

 Americas:

     United States  (a)

$                         9.6

$                     (5.8)

N/A

N/A

     Other Americas

8.6

3.9

121.6%

110.0%

18.2

(1.9)

N/A

N/A

 France

9.9

4.2

139.8%

168.6%

 EMEA:

     Italy

13.5

6.8

99.5%

115.3%

     Other EMEA (b)

29.5

(6.9)

N/A

N/A

43.0

(0.1)

N/A

N/A

 Asia Pacific

12.0

3.5

237.3%

215.1%

 Right Management

7.8

42.3

-81.5%

-81.7%

 Jefferson Wells

(3.1)

(10.2)

N/A

N/A

87.8

37.8

Corporate expenses

(25.1)

(18.8)

Reclassification of French business tax

16.4

-

   Operating profit

79.1

19.0

314.9%

331.0%

Interest and other expenses (c)

(11.9)

(10.8)

   Earnings before income taxes

$                       67.2

$                       8.2

(a)  The United States results include the results of COMSYS IT Partners, Inc., which was
acquired on April 5, 2010. United States revenues from services include fees received
from our franchise offices of $3.4 million and $2.4 million for the three months ended
June 30, 2010 and 2009, respectively. These fees are primarily based on revenues
generated by the franchise offices, which were $155.8 million and $107.2 million for
the three months ended June 30, 2010 and 2009, respectively.

(b)  Our 2009 results have been restated as disclosed in Note 16 to the Consolidated
Financial Statements included in our 2009 Annual Report to Shareholders.

(c)  The components of interest and other expenses were:

2010

2009

       Interest expense

$                       12.5

$                     13.9

       Interest income

(1.4)

(3.2)

       Foreign exchange losses

0.9

1.0

       Miscellaneous income, net

(0.1)

(0.9)

$                       11.9

$                     10.8

Manpower Inc.

Results of Operations

(In millions, except per share data)

Six Months Ended June 30

% Variance

Amount

Constant

2010

2009

Reported

Currency

(Unaudited)

Revenues from services (a) (b)

$           8,684.9

$          7,436.5

16.8%

14.6%

Cost of services

7,186.4

6,078.5

18.2%

16.0%

   Gross profit

1,498.5

1,358.0

10.3%

8.2%

Selling and administrative expenses

1,386.8

1,337.6

3.7%

1.6%

   Operating profit

111.7

20.4

447.6%

441.4%

Interest and other expenses

24.8

22.7

9.4%

   Earnings (loss) before income taxes

86.9

(2.3)

N/A

N/A

Provision for income taxes

51.4

(16.8)

N/A

   Net earnings

$                35.5

$               14.5

143.9%

140.0%

Net earnings per share - basic

$                0.44

$               0.19

131.6%

Net earnings per share - diluted

$                0.44

$               0.18

144.4%

264.9%

Weighted average shares - basic

80.1

78.2

2.4%

Weighted average shares - diluted

81.2

78.6

3.4%

(a) Revenues from services include fees received from our franchise offices of $10.4 million and $10.9
million for the six months ended June 30, 2010 and 2009, respectively. These fees are primarily
based on revenues generated by the franchise offices, which were $431.2 million and $333.0 million
for the six months ended June 30, 2010 and 2009, respectively.

(b) Our 2009 results have been restated as disclosed in Note 16 to the Consolidated Financial Statements
included in our 2009 Annual Report to Shareholders.

Manpower Inc.

Operating Unit Results

(In millions)

Six Months Ended June 30

% Variance

Amount

Constant

2010

2009

Reported

Currency

(Unaudited)

Revenues from Services:

 Americas:

     United States  (a)

$                   1,128.1

$                    748.1

50.8%

50.8%

     Other Americas

600.6

439.9

36.5%

26.9%

1,728.7

1,188.0

45.5%

41.9%

 France

2,363.4

2,057.0

14.9%

16.4%

 EMEA:

     Italy

493.0

450.5

9.4%

10.7%

     Other EMEA (b)

2,813.3

2,514.7

11.9%

9.2%

3,306.3

2,965.2

11.5%

9.4%

 Asia Pacific

1,003.2

831.4

20.7%

10.2%

 Right Management

202.1

294.1

-31.3%

-33.2%

 Jefferson Wells

81.2

100.8

-19.5%

-19.5%

$                   8,684.9

$                 7,436.5

16.8%

14.6%

Operating Unit (Loss) Profit:

 Americas:

     United States  (a)

$                          1.2

$                    (20.3)

N/A

N/A

     Other Americas

18.2

8.7

110.2%

97.4%

19.4

(11.6)

N/A

N/A

 France

10.1

5.2

96.2%

122.1%

 EMEA:

     Italy

20.3

8.2

148.6%

157.7%

     Other EMEA (b)

46.3

(10.3)

N/A

N/A

66.6

(2.1)

N/A

N/A

 Asia Pacific

24.5

15.6

57.0%

41.9%

 Right Management

20.3

71.4

-71.5%

-72.1%

 Jefferson Wells

(7.8)

(17.7)

N/A

N/A

133.1

60.8

Corporate expenses

(51.5)

(40.4)

Reclassification of French business tax

30.1

-

   Operating profit

111.7

20.4

447.6%

441.4%

Interest and other expenses (c)

(24.8)

(22.7)

   Earnings (loss) before income taxes

$                        86.9

$                      (2.3)

(a) The United States results include the results of COMSYS IT Partners, Inc., which
was acquired on April 5, 2010. United States, revenues from services include
fees received from our franchise offices of $5.9 million and $4.4 million for the
six months ended June 30, 2010 and 2009, respectively.  These fees are
primarily based on revenues generated by the franchise offices, which were
$288.0 million and $202.1 million for the years ended June 30, 2010 and
2009, respectively.

(b) Our 2009 results have been restated as disclosed in Note 16 to the Consolidated
Financial Statements included in our 2009 Annual Report to Shareholders.

(c) The components of interest and other expenses were:

2010

2009

       Interest expense

$                        23.6

$                      27.0

       Interest income

(3.0)

(7.6)

       Foreign exchange losses

2.8

1.5

       Miscellaneous expenses, net

1.4

1.8

$                        24.8

$                      22.7

Manpower Inc.

Consolidated Balance Sheets

(In millions)

Jun. 30

Dec. 31

2010

2009

(Unaudited)

ASSETS

Current assets:

 Cash and cash equivalents

$          552.5

$      1,014.6

 Accounts receivable, net

3,415.7

3,070.8

 Prepaid expenses and other assets

172.4

179.6

 Future income tax benefits

65.4

67.4

     Total current assets

4,206.0

4,332.4

Other assets:

 Goodwill and other intangible assets, net

1,732.3

1,357.5

 Other assets

326.9

347.5

     Total other assets

2,059.2

1,705.0

Property and equipment:

 Land, buildings, leasehold improvements and equipment

655.0

703.6

 Less:  accumulated depreciation and amortization

492.3

527.2

   Net property and equipment

162.7

176.4

       Total assets

$       6,427.9

$      6,213.8

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

 Accounts payable

$       1,193.4

$         944.4

 Employee compensation payable

184.6

187.8

 Accrued liabilities

426.4

465.9

 Accrued payroll taxes and insurance

543.9

572.0

 Value added taxes payable

407.2

391.2

 Short-term borrowings and current

   maturities of long-term debt

36.1

41.7

     Total current liabilities

2,791.6

2,603.0

Other liabilities:

 Long-term debt

611.9

715.6

 Other long-term liabilities

396.0

358.7

     Total other liabilities

1,007.9

1,074.3

Shareholders' equity:

 Common stock

1.0

1.0

 Capital in excess of par value

2,758.9

2,544.2

 Retained earnings

1,114.5

1,109.6

 Accumulated other comprehensive (loss) income

(20.0)

106.9

 Treasury stock, at cost

(1,226.0)

(1,225.2)

     Total shareholders' equity

2,628.4

2,536.5

       Total liabilities and shareholders' equity

$       6,427.9

$      6,213.8

Manpower Inc.

Consolidated Statements of Cash Flows

(In millions)

Six Months Ended

June 30

2010

2009

(Unaudited)

Cash Flows from Operating Activities:

 Net earnings

$           35.5

$         14.5

 Adjustments to reconcile net earnings to net

   cash provided by operating activities:

     Depreciation and amortization

50.5

46.9

     Deferred income taxes

(6.9)

(27.5)

     Provision for doubtful accounts

13.5

13.7

     Share-based compensation

11.5

7.5

     Excess tax benefit on exercise of stock options

(0.8)

(0.1)

 Changes in operating assets and liabilities, excluding

   the impact of acquisitions:

     Accounts receivable

(480.1)

759.5

     Other assets

(26.3)

(40.7)

     Other liabilities

337.4

(394.5)

           Cash (used in) provided by operating activities

(65.7)

379.3

Cash Flows from Investing Activities:

 Capital expenditures

(27.9)

(16.9)

 Acquisitions of businesses, net of cash acquired

(258.5)

(21.7)

 Proceeds from the sale of property and equipment

2.3

2.1

           Cash used in investing activities

(284.1)

(36.5)

Cash Flows from Financing Activities:

 Net change in short-term borrowings

(5.5)

(21.7)

 Proceeds from long-term debt

1.4

137.3

 Repayments of long-term debt

(0.8)

(200.6)

 Proceeds from share-based awards

14.8

5.5

 Excess tax benefit on exercise of stock options

0.8

0.1

 Dividends paid

(30.6)

(29.0)

           Cash used in financing activities

(19.9)

(108.4)

Effect of exchange rate changes on cash

(92.4)

(1.1)

Change in cash and cash equivalents

(462.1)

233.3

Cash and cash equivalents, beginning of period

1,014.6

874.0

Cash and cash equivalents, end of period

$         552.5

$    1,107.3