ManpowerGroup (MAN) has reported a 2.82 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $127.40 million, or $1.87 a share in the quarter, compared with $123.90 million, or $1.66 a share for the same period last year.
Revenue during the quarter went up marginally by 0.04 percent to $4,956.10 million from $4,953.90 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 16.97 percent. Total expenses were 95.72 percent of quarterly revenues, down from 96.34 percent for the same period last year. This has led to an improvement of 62 basis points in operating margin to 4.28 percent.
Operating income for the quarter was $212 million, compared with $181.10 million in the previous year period.
Jonas Prising, ManpowerGroup chairman & chief executive officer, said: "We are very pleased with our strong performance in the 4th quarter, with improving top line growth and strong bottom line performance, capping off a solid year, despite the uneven and slow growth environment in 2016."
For the first-quarter 2017, The company projects diluted earnings per share to be in the range of $1.06 to $1.14.
Operating cash flow improves
ManpowerGroup has generated cash of $600 million from operating activities during the year, up 17.30 percent or $88.50 million, when compared with the last year.
The company has spent $110.40 million cash to meet investing activities during the year as against cash outgo of $298.10 million in the last year. It has incurred net capital expenditure of $52.80 million on net basis during the year, up 40.43 percent or $15.20 million from year ago.
The company has spent $597.60 million cash to carry out financing activities during the year as against cash outgo of $144.20 million in the last year period.
Cash and cash equivalents stood at $598.50 million as on Dec. 31, 2016, down 18.07 percent or $132 million from $730.50 million on Dec. 31, 2015.
Working capital declines
ManpowerGroup has witnessed a decline in the working capital over the last year. It stood at $1,474.10 million as at Dec. 31, 2016, down 10.20 percent or $167.40 million from $1,641.50 million on Dec. 31, 2015. Current ratio was at 1.40 as on Dec. 31, 2016, down from 1.48 on Dec. 31, 2015.
Debt comes down marginally
ManpowerGroup has recorded a decline in total debt over the last one year. It stood at $825.40 million as on Dec. 31, 2016, down 3.47 percent or $29.70 million from $855.10 million on Dec. 31, 2015. Total debt was 10.90 percent of total assets as on Dec. 31, 2016, compared with 11.37 percent on Dec. 31, 2015. Debt to equity ratio was at 0.34 as on Dec. 31, 2016, up from 0.32 as on Dec. 31, 2015.
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