Manpower Shares Plunge On Wider 3Q Loss

HARTFORD, Conn. (AP) — Shares of Manpower Inc. fell sharply Wednesday after the staffing company reported a wider third-quarter loss on swooning labor markets.

The Milwaukee-based company also predicted fourth-quarter earnings below analyst estimates.

Shares plunged $6.66, or 11 percent, to $54.09 in afternoon trading. The stock has ranged from $22.60 to $63 over the past year.

Manpower posted a quarterly loss of $50.4 million, or 64 cents per share, compared with a loss of $43.2 million, or 55 cents per share, in the same period last year. However, excluding charges, third-quarter earnings would have been 26 cents per share, widely beating analyst estimates.

Standard & Poor's analyst Michael Jaffe said in a client note that Manpower's stock price has "gotten ahead of itself."

He added that the company's business is at its low point and he sees labor markets posting only modest gains in 2010. He cut his 2009 earnings estimate to 95 cents per share from $1.

Elsewhere, analyst James Janesky of Stifel Nicolaus said productivity gains, workweek capacity and employees on temporary layoff limit the potential for higher staffing demand. In addition, permanent layoffs and mismatched skills and jobs "could drive an abnormally long delay in permanent placement," he said.