UPDATE 3-Manpower beats view, says recovery sustainable

* Says job trends improving around the world

* Q4 EPS 37 cents; Street view 24 cents

* To buy IT staffing firm Comsys

* Shares up 3 pct
(Adds details on Comsys acquisition, stock reaction)

NEW YORK, Feb 2 (BestGrowthStock) – Manpower Inc (MAN.N: ) reported
higher-than-expected quarterly profit on Tuesday amid improved
demand for temporary employees, and said it was growing more
and more confident that economic recovery would be sustained.

The global employment services company also forecast its
first quarterly sales increase in more than a year and said it
would buy technology staffing firm Comsys IT Partners Inc
(CITP.O: ) to expand in the professional staffing area.

Manpower shares rose 3 percent to $54.76 in early trading.

“We still anticipate this recovery as somewhat slower than
what we’ve seen in the past, though the signs now are actually
quite positive,” Chief Executive Jeff Joerres said on a
conference call, adding that the United States appeared to be
on a faster path to recovery than Europe.

“You’re seeing good demand but not demand enough to poke
the hole into permanent hiring,” Joerres said, adding that he
expected temporary workers as a percentage of the total
workforce to surpass prior peaks.

Fourth-quarter net earnings fell 62 percent to $29.1
million, or 37 cents per share, from $76 million, or 97 cents
per share, a year earlier.

Earnings per share were 13 cents above the average Wall
Street forecast, according to Thomson Reuters I/B/E/S.

Revenue fell 4 percent to $4.4 billion, compared with Wall
Street forecasts of $4.16 billion.

Milwaukee-based Manpower, which generates most of its sales
and profits outside the United States, said job trends were
improving around the world. The company said it expects higher
revenue in the first quarter, which would be its first such
increase since the third quarter of 2008.

Demand for temporary workers typically rises early in a
recovery as employers look for flexibility before committing to
hiring permanent workers. Monthly government data has shown
growth in temporary payrolls in recent months and is expected
to do so again in Friday’s January jobs report.

Shares of staffing services provider Hudson Highland Group
Inc (HHGP.O: ) rallied on Monday after the company said it saw
improving demand for temporary workers across its markets and
said quarterly revenue would be above Wall Street estimates.

Separately, Manpower said on Tuesday that it would buy
professional staffing firm Comsys IT Partners Inc, which
provides technology staff, for $17.65 per share. The total
value of the deal is $431 million, including debt.

The deal, expected to close in April, will push the share
of specialty services to more than 20 percent of Manpower’s
total revenue. It is expected to generate cost savings of $20
million a year, and will add about 10 cents a share to
Manpower’s 2010 earnings.

Robert W. Baird & Co. served as the exclusive financial
advisor to Comsys in connection with the sale.

In another staffing industry deal, Manpower rival Spherion
Corp (SFN.N: ) said late on Monday that it would pay $46 million
in cash and stock for Tatum LLC, a provider of interim
executives. [ID:nSGE6102MK]


(Reporting by Nick Zieminski; Editing by Lisa Von Ahn, John
Wallace, Dave Zimmerman)

UPDATE 3-Manpower beats view, says recovery sustainable