Tax law boosted ManpowerGroup’s earnings

The new U.S. tax law provided a major boost to Milwaukee-based ManpowerGroup’s earnings for the fourth quarter, the company said Friday.

The gain from tax reform represented nearly a third of the company’s earnings per share, ManpowerGroup said in a statement announcing its fourth-quarter and full-year 2017 earnings.

The global staffing and workforce company said net earnings per share were $3.22 for the three months ended Dec. 31, compared with $1.87 per share a year ago.

“Financial results in the quarter were significantly impacted by discrete net tax benefits primarily related to U.S. tax reform through the enactment of the Tax Cuts and Jobs Act in the fourth quarter,” ManpowerGroup said in the statement.

Net tax benefits positively impacted earnings by $1.10 per share in the fourth quarter.

Earnings in the quarter were $216.3 million, compared with $127.4 million a year earlier. Revenue for the fourth quarter totaled $5.6 billion, an increase of 14% from a year ago.

Financial results in the quarter also were impacted by stronger foreign currencies relative to the U.S. dollar, ManpowerGroup said.

On a constant currency basis, revenue increased 7% and net earnings per diluted share increased 67%. Excluding the net tax benefits, on a constant currency basis, net earnings per share increased 8%.

Manpower anticipates 2018 firstquarter earnings per share to range from $1.60 to $1.68.

For the full year ended Dec. 31, Manpower’s net earnings were $545.4 million, or $8.04 per share, compared with net earnings of $443.7 million, or $6.27 per share, a year ago.

Revenue for the year was $21 billion, an increase of 7% from the prior year and an increase of 6% in constant currency.

ManpowerGroup shares ended the day Friday down $9.76, or 7.4%, to $122.46.