Oct. 22--Despite better-than-expected results, Milwaukee's Manpower Inc. saw its stock price decline by more than 13 percent Wednesday following its third-quarter financial report.

The global employment services company cited continued economic sluggishness and several charges for a loss of $50.4 million, or 64 cents a share, compared with a loss of $43.2 million, or 55 cents a share, in the third quarter of 2008. Revenue fell 26 percent from the year before to $4.2 billion.

Without charges -- including a $61 million impairment charge for its Jefferson Wells subsidiary -- Manpower would have had net income of $20.5 million, or 26 cents a share, for the quarter.

Mark Marcon, who follows Manpower for Milwaukee's Robert W. Baird & Co., had expected adjusted earnings per share of 20 cents, which was higher than the average of 17 cents from analysts surveyed by Bloomberg News. Revenue also beat forecasts, Marcon said in a report, and showed year-to-year declines lessening in every major place Manpower does business.

After the results were released, Manpower shares fell $8.05, or 13.25 percent, to close at $52.70.

Speaking with analysts, Jeff Joerres, president, chief executive officer and chairman of Manpower, credited "slightly better revenues and continued good management of expenses" for the company's results.

Mike Van Handel, executive vice president and chief financial officer, said part of the expense cuts came from reducing staff by 20 percent, or about 7,000 full-time equivalent positions worldwide, since the third quarter of 2008 and by consolidating 500 offices in the same period. Cuts abated somewhat in the last three months, Van Handel said, and he repeated Joerres in saying that Manpower feels that it is at about the size it needs to be for the quarters ahead.

"We have been very careful with our expense reductions to make sure that we are well positioned to fully serve our clients as the economy recovers and optimize the sales opportunities," Van Handel said.

Joerres said Manpower is waiting for demand to pick up for the goods and services of its clients so more workers are needed. But even as that happens, Joerres said, uncertainty may undermine hiring.

"We believe the fourth quarter will be a difficult quarter where we will see revenues increase primarily based on better comparables on a year-over-year basis," Joerres said. "We are still anticipating that some of our clients, particularly in Europe, will potentially use extended shutdowns as a way of saving money in 2009."

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