ManpowerGroup Inc. (NYSE:MAN) Q4 2022 Earnings Call Transcript

Jonas Prising: Well, I think the overall market is still holding steady. Unemployment rates are still low, and there is a lot of work that we’re doing to make sure that our business is competing the way it should. We were pleased to see an improvement sequentially between the third quarter and the fourth quarter. We expect to continue to see an improvement. As we’ve talked about in prior calls, our exposure to the automotive sector in Germany is the highest that we have across all of our countries, and that’s really giving us a lot of work to do to diversify our business into segments that are holding up a bit better. Even if the market could go softer also in Germany in the first quarter, I think we have initiatives in place where we’re hoping to see continued improvement in our own business as we move forward, and we have a Proservia business that is also working to recover some of the lost ground.

But overall, we’re pleased to see signs of improvement, but we still have a lot of work to do, Heather, to make sure that we’re competing at the right level in the German market.

Heather Balsky: Thank you, and then another question, just China reopening, I know–you know, if we go back a couple of calls, there was potential risk of disruption from the lockdowns. I’m just curious if there is any benefit with China reopening or if all of that is just non-material to your business.

Jonas Prising: Well as you know, our Chinese business has managed through a listed company in Hong Kong that is covering the Chinese market, but overall I would expect that when Chinese demand improves, it will have the benefit of creating demand for products and services for the rest of the world, which will be positive, and it will probably also increase pressure in terms of demand for resources and energy costs might go up. But overall, a growing China should be beneficial for the world economy and as such, we would benefit from that evolution. Certainly on the Manpower side, that might mean that PMIs start to turn the other way and go in the right, positive direction again. From our own business perspective, not an impact, but as opposed to there might be a secondary effect of an improving economic environment to which China’s growth contributes.

Heather Balsky: Got it, thank you very much.

Operator: Thank you.

Jonas Prising: Thank you everyone. That brings us to the end of our fourth quarter earnings call, and we look forward to speaking with you again when we catch up in April. Thanks everyone. Have a good rest of the week.

Operator: Thank you for your participation. You may disconnect now.