ManpowerGroup
MAN
#5491
Rank
$1.31 B
Marketcap
$28.20
Share price
-4.26%
Change (1 day)
-50.42%
Change (1 year)

ManpowerGroup - 10-Q quarterly report FY


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1


SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] Quarterly Report pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 for the
quarterly period ended:

June 30, 1999

or

[ ] Transition Report pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 for the
transition period from: ______to______

Commission file number: 1-10686

MANPOWER INC.
(Exact name of registrant as specified in its charter)

Wisconsin 39-1672779
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)

5301 N. Ironwood Road
Milwaukee, Wisconsin 53217
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (414) 961-1000

Indicate by check mark whether the Registrant (1)
has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for
such shorter period that the Registrant was
required to file such reports), and (2) has been
subject to such filing requirements for the past
90 days.
Yes X No

Indicate the number of shares outstanding of each
of the issuer's classes of common stock, as of the
latest practicable date.

Shares
Outstanding
at June 30,
Class 1999
Common Stock, $.01 par value 76,719,316
MANPOWER INC. AND SUBSIDIARIES


INDEX



Page
Number

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements (unaudited)
- Consolidated Balance Sheets 3 - 4

- Consolidated Statements of Operations 5

- Consolidated Statements of Cash Flows 6

- Notes to Consolidated Financial Statements 7 - 10


Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 11 - 15

Item 3 - Quantitative and Qualitative Disclosures
About Market Risk 15


PART II - OTHER INFORMATION AND SIGNATURES

Item 4 - Submission of Matters to a Vote of Security Holders 16

Item 5 - Other Information 16

Item 6 - Exhibits and Reports on Form 8-K 17

Signatures 18
PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

MANPOWER INC. AND SUBSIDIARIES

Consolidated Balance Sheets
(in thousands)

ASSETS

June 30, December 31,
1999 1998
(unaudited)
CURRENT ASSETS:

Cash and cash equivalents $116,788 $180,456
Accounts receivable, less allowance for
doubtful accounts of $40,302 and
$39,504, respectively 1,654,099 1,674,729
Prepaid expenses and other assets 62,501 53,565
Future income tax benefits 51,099 52,812
Total current assets 1,884,487 1,961,562

OTHER ASSETS:

Investments in licensees 34,512 33,055
Other assets 219,658 195,223
Total other assets 254,170 228,278

PROPERTY AND EQUIPMENT:

Land, buildings, leasehold improvements
and equipment 396,097 411,391
Less: accumulated depreciation and amoritization 217,621 220,131
Net property and equipment 178,476 191,260
Total assets $2,317,133 $2,381,100



The accompanying notes to consolidated financial statements
are an integral part of these balance sheets.
MANPOWER INC. AND SUBSIDIARIES

Consolidated Balance Sheets
(in thousands, except share data)

LIABILITIES AND STOCKHOLDERS' EQUITY


June 30, December 31,
1999 1998
(unaudited)
CURRENT LIABILITIES:

Payable to banks $ 51,511 $ 99,268
Accounts payable 410,790 347,864
Employee compensation payable 69,204 77,084
Accrued liabilities 159,402 154,428
Accrued payroll taxes and insurance 275,245 319,053
Value added and income taxes payable 265,809 309,283
Current maturities of long-term debt 3,587 4,076
Total current liabilities 1,235,548 1,311,056

OTHER LIABILITIES:

Long-term debt 211,400 154,594
Other long-term liabilities 271,908 246,512
Total other liabilities 483,308 401,106

STOCKHOLDERS' EQUITY:

Preferred stock, $.01 par value, authorized
25,000,000 shares, none issued - -
Common stock, $.01 par value, authorized
125,000,000 shares, issued 83,541,916 and
83,279,149 shares, respectively 835 833
Capital in excess of par value 1,607,730 1,602,721
Accumulated deficit (742,981) (787,699)
Accumulated other comprehensive loss (80,083) (17,895)
Treasury stock at cost, 6,822,600 and
4,349,400 shares, respectively (187,224) (129,022)
Total stockholders' equity 598,277 668,938
Total liabilities and stockholders' equity $2,317,133 $2,381,100





The accompanying notes to consolidated financial statements
are an integral part of these balance sheets.
MANPOWER INC. AND SUBSIDIARIES

Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

3 Months Ended 6 Months Ended
June 30, June 30,
1999 1998 1999 1998

Revenues from services $2,327,597 $2,136,103 $4,502,833 $4,008,969

Cost of services 1,922,879 1,775,718 3,717,881 3,321,226
Gross profit 404,718 360,385 784,952 687,743

Selling and administrative
expenses 377,306 315,450 720,748 606,045
Operating profit 27,412 44,935 64,204 81,698

Interest and other expense 5,047 4,352 9,887 7,496
Earnings before income taxes 22,365 40,583 54,317 74,202

Provision for income taxes (9,420) 14,411 1,924 26,340
Net earnings $ 31,785 $ 26,172 $ 52,393 $ 47,862


Net earnings per share $ .41 $ .32 $ .67 $ .59


Net earnings per share - diluted $ .40 $ .32 $ .66 $ .58



Weighted average common shares 77,789 80,646 78,413 80,602


Weighted average common shares
- diluted 78,508 82,031 79,196 82,012


The accompanying notes to consolidated financial statements
are an integral part of these statements.



MANPOWER INC. AND SUBSIDIARIES

Supplemental Systemwide Information (Unaudited)
(in thousands)

3 Months Ended 6 Months Ended
June 30, June 30,
1999 1998 1999 1998

Systemwide Sales $2,756,067 $2,561,343 $5,318,537 $4,838,259


Systemwide information represents the total of Company-owned
branches and franchises.
MANPOWER INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

6 Months Ended
June 30,
1999 1998

CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $52,393 $47,862
Adjustments to reconcile net
earnings to net cash
provided by operating activities:
Depreciation and amortization 33,151 26,586
Deferred income taxes (13) 223
Provision for doubtful accounts 6,513 7,186
Changes in operating assets and liabilities:
Accounts receivable (125,835) (232,452)
Other assets (33,794) (12,641)
Other liabilities 83,753 154,419
Cash provided (used) by
operating activities 16,168 (8,817)

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (38,703) (63,322)
Proceeds from the sale of property and equipment 10,272 882
Acquisitions of businesses, net of cash acquired (2,518) (6,913)
Cash used by investing activities (30,949) (69,353)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in payable to banks (33,194) 51,560
Proceeds from long-term debt 61,161 40,292
Repayment of long-term debt (4,845) (757)
Proceeds from stock option and purchase plans 5,012 9,515
Repurchase of common stock (58,202) -
Dividends paid (7,675) (7,263)
Cash (used) provided by financing activities (37,743) 93,347

Effect of exchange rate changes on cash (11,144) (1,872)
Net change in cash and cash equivalents (63,668) 13,305

Cash and cash equivalents, beginning of period 180,456 142,246
Cash and cash equivalents, end of period $116,788 $155,551


SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid $7,601 $4,157

Income taxes paid $37,763 $16,011


The accompanying notes to consolidated financial statements
are an integral part of these statements.
MANPOWER INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)
For the Six Months Ended June 30, 1999 and 1998
(in thousands, except per share data)


(1) Basis of Presentation

Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with generally accepted accounting principles have been
condensed or omitted pursuant to the rules and
regulations of the Securities and Exchange Commission,
although the Company believes that the disclosures are
adequate to make the information presented not
misleading. These consolidated financial statements
should be read in conjunction with the consolidated
financial statements included in the Company's 1998
Annual Report to Shareholders.

The information furnished reflects all adjustments
that, in the opinion of management, are necessary for a
fair statement of the results of operations for the
periods presented. Such adjustments are of a normal
recurring nature.

(2) Accounting Policies

The Financial Accounting Standards Board ("FASB")
issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities" in June 1998. This
statement establishes accounting and reporting
standards requiring that every derivative instrument be
recorded on the balance sheet as either an asset or
liability measured at its fair value. The statement
requires that changes in the derivative's fair value be
recognized currently in earnings unless specific hedge
accounting criteria are met, in which case the gains or
losses would offset the related results of the hedged
item. In June 1999, the FASB issued SFAS No. 137,
"Accounting for Derivative Instruments and Hedging
Activities-Deferral of the Effective Date of FASB
Statement No. 133" which defers the required adoption
date of SFAS No. 133 until 2001 for the Company,
however early adoption is allowed. The Company has not
yet determined the timing or method of adoption or
quantified the impact of adopting this statement.
While the statement could increase volatility in
earnings and other comprehensive income, it is not
expected to have a material impact on the Consolidated
Financial Statements due to the Company's limited use
of derivative instruments.
(3) Earnings Per Share

The calculations of net earnings per share and net
earnings per share - diluted are as follows:

3 Months Ended 6 Months Ended
June 30, June 30,
1999 1998 1999 1998
Net earnings per share:
Net earnings available to
common shareholders $ 31,785 $ 26,172 $ 52,393 $ 47,862
Weighted average common
shares outstanding 77,789 80,646 78,413 80,602
$ .41 $ .32 $ .67 $ .59


Net earnings per share - diluted:
Net earnings available to
common shareholders $ 31,785 $ 26,172 $ 52,393 $ 47,862

Weighted average common
shares outstanding 77,789 80,646 78,413 80,602
Effect of dilutive stock options 719 1,385 783 1,410
78,508 82,031 79,196 82,012
$ .40 $ .32 $ .66 $ .58


(4) Income Taxes

The Company had a one-time tax benefit of $15.7 million
during the quarter ended June 30, 1999 in connection
with the Company's dissolution of a non-operating
subsidiary. Exclusive of the effect of this benefit,
the Company provided for income taxes at 35.5%, which
is equal to the estimated annual effective tax rate
based on the currently available information. This
rate is higher than the U.S. Federal statutory rate due
to foreign tax rate differences and U.S. state income
taxes.

(5) Stockholders' Equity

Total comprehensive income (loss) consists of net
earnings and foreign currency translation adjustments
and is as follows:

3 Months Ended 6 Months Ended
June 30, June 30,
1999 1998 1999 1998

Net earnings $ 31,785 $ 26,172 $ 52,393 $ 47,862
Foreign currency translation
adjustments (20,856) 4,631 (62,188) (5,929)
Total comprehensive income
(loss) $ 10,929 $ 30,803 $ (9,795) $ 41,933


On April 26, 1999, the Company's Board of Directors
declared a cash dividend of $.10 per share which was
paid on June 14, 1999 to shareholders of record on June 2, 1999.
(6) Interest Rate Swap

The Company has an interest rate swap agreement,
expiring in 2001, to fix the interest rate at 6.0% on
$50,000 of the Company's borrowings under the revolving
credit agreement. This swap agreement had an immaterial
impact on the recorded interest expense during the six
months of 1999. As of June 30, 1999, the variable
interest rate under the revolving credit agreement was
5.3%.

(7) Business Segment Data by Geographical Area

Geographical segment information is as follows:

3 Months Ended 6 Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues from services:
United States (a) $ 560,092 $ 538,499 $1,075,921 $1,037,572
France 893,336 900,685 1,721,359 1,622,074
United Kingdom 264,704 254,473 537,507 502,707
Other Europe 357,212 262,207 684,134 493,045
Other Countries 252,253 180,239 483,912 353,571
$2,327,597 $2,136,103 $4,502,833 $4,008,969


Operating Unit Profit:
United States $ 21,023 $ 20,284 $ 34,341 $ 35,544
France 21,302 18,150 34,665 30,216
United Kingdom 7,467 5,592 14,338 12,985
Other Europe 12,582 7,310 21,941 13,427
Other Countries 4,269 5,458 7,661 12,617
66,643 56,794 112,946 104,789
Corporate expenses (9,559) (10,670) (17,489) (20,667)
Amortization of intangible
assets (1,672) (1,189) (3,253) (2,424)
Non-recurring expenses (b) (28,000) - (28,000) -
Operating profit 27,412 44,935 64,204 81,698
Interest and other expense 5,047 4,352 9,887 7,496
Earnings before income
taxes $ 22,365 $ 40,583 $ 54,317 $ 74,202



(a) Total systemwide sales in the United States,
which includes sales of Company-owned branches and
franchises, was $930,526 and $894,951 for the
three months ended June 30, 1999 and 1998,
respectively, and $1,780,916 and $1,726,200 for
the six months ended June 30, 1999 and 1998,
respectively.

(b) Represents non-recurring items ($16,400 after
tax) in the second quarter of 1999 related to
employee severances, retirement costs and other
associated realignment costs.
(8) Subsequent Events

On July 26, 1999, the Company issued euro200,000 in
unsecured notes with an effective interest rate of
5.69%, due in July 2006. Net proceeds from the issuance
were used to repay amounts under the Company's
unsecured revolving credit agreement and the commercial
paper program.
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations

Operating Results - Three Months Ended June 30, 1999 and 1998

Revenues increased 9.0% to $2,327.6 million for the
second quarter of 1999. Revenues were unfavorably
impacted by changes in currency exchange rates during
the second quarter of 1999 due to the strengthening of
the U.S. Dollar, as compared to the second quarter of
1998, relative to the currencies in most of the
Company's non-U.S. markets. At constant exchange
rates, the increase in revenues would have been 10.1%.
Volume, as measured by billable hours of branch
operations, increased 7.7% in the quarter. All of the
Company's major markets experienced revenue increases,
as measured in their local currencies, including the
United States (4.0%), France (2.4%) and the United
Kingdom (7.0%). The Company's Other Europe and Other
Countries segments reported revenue increases, as
measured in their local currencies, of 41.7% and 24.6%,
respectively.

Cost of services, which consists of payroll and related
expenses of temporary workers, decreased as a
percentage of revenues to 82.6% in the second quarter
of 1999 from 83.1% in the second quarter of 1998.
Gross margins increased in France during the quarter
due to enhanced pricing.

Selling and administrative expenses increased 19.6% to
$377.3 million in the quarter, primarily due to non-
recurring items totaling $28.0 million ($16.4 million
after tax) related to employee severances, retirement
costs and other associated realignment costs. Excluding
these non-recurring items, selling and administrative
expenses remained constant with the first quarter of
1999 level despite the Company's continued investments
in new or expanding markets.

Interest and other expense was $5.0 million in the
second quarter of 1999 compared to $4.4 million in the
second quarter of 1998. Net interest expense, plus the
cost of the U.S. accounts receivable securitization
program in 1999, was $4.3 million and $2.4 million in
the second quarter of 1999 and 1998, respectively. This
increase is primarily due to higher borrowing levels to
finance the share repurchase program and the Company's
investment in new markets. Translation gains were
$100,000 in the second quarter of 1999 compared to
losses of $1.2 million in the second quarter of 1998.

The Company had a one-time tax benefit of $15.7 million
during the quarter ended June 30, 1999 in connection
with the Company's dissolution of a non-operating
subsidiary. Exclusive of the effect of the benefit, the
Company provided for income taxes at 35.5%, which is
equal to the estimated annual effective tax rate based
on the currently available information. This rate is
higher than the U.S. Federal statutory rate due to
foreign tax rate differences and U.S. state income
taxes.

On a diluted basis, net earnings per share was $.40 in
the second quarter of 1999 compared to $.32 in the
secon++d quarter of 1998. Excluding the non-recurring
items and one-time income tax gain, net earnings per
share on a diluted basis would have been $.41 in the
second quarter of 1999. The diluted weighted average
shares decreased by 4.3% for the quarter due to the
Company's treasury stock purchases and a smaller effect
of dilutive stock options (see Note 3 to the
Consolidated Financial Statements) because of the lower
average share price during the quarter.

Operating Results - Six Months Ended June 30, 1999 and 1998

Revenues increased 12.3% to $4,502.8 million for the
first six months of 1999. Revenues were unfavorably
impacted by changes in currency exchange rates during
the first six months of 1999 due to the strengthening
weakening of the U.S. Dollar, as compared to the first
six months of 1998, relative to the currencies in most
of the Company's non-U.S. markets. At constant
exchange rates, the increase in revenues would have
been 11.5%. Volume, as measured by billable hours of
branch operations, increased 9.2% in the six month
period. All of the Company's major markets experienced
revenue increases, as measured in their local
currencies, including the United States (3.7%), France
(5.9%) and the United Kingdom (8.9%). The Company's
Other Europe and Other Countries segments reported
revenue increases, as measured in their local
currencies, of 40.1% and 23.9%, respectively.

Cost of services, which consists of payroll and related
expenses of temporary workers, was 82.6% of revenues in
the six months of 1999 compared to 82.8% during the
same period in 1998. Gross margins increased in France
during the first six months of 1999 due to enhanced
pricing.

Selling and administrative expenses increased 18.9% to
$720.7 million during the first six month period of
1999 primarily due to non-recurring items totaling
$28.0 million ($16.4 million after tax) related to
employee severances, retirement costs and other
associated realignment costs. Excluding these non-
recurring items, selling and administrative expenses
remain at or below the expense levels of late 1998
despite the Company's continued investments in new or
expanding markets.

Interest and other expense was $9.9 million in the
first six months of 1999 compared to $7.5 million in
the first six months of 1998. Net interest expense,
plus the cost of the U.S. accounts receivable
securitization program in 1999, was $8.3 million and
$3.3 million in the first six months of 1999 and 1998,
respectively. This increase is primarily due to higher
borrowing levels to finance the share repurchase
program and the Company's investment in new markets.
Translation losses were $900,000 in the first six
months of 1999 compared to $2.4 million in the first
six months of 1998.

The Company had a one-time tax benefit of $15.7 million
during the six month period ended June 30, 1999 in
connection with the Company's dissolution of a non-
operating subsidiary. Exclusive of the effect of the
benefit, the Company provided for income taxes at
35.5%, which is equal to the estimated annual effective
tax rate based on the currently available information.
This rate is higher than the U.S. Federal statutory
rate due to foreign tax rate differences and U.S. state
income taxes.

On a diluted basis, net earnings per share was $.66 in
the first six months of 1999 compared to $.58 in the
first six months of 1998. Excluding the non-recurring
items and one-time income tax gain, net earnings per
share on a diluted basis would have been $.67 during
the first six months of 1999. The diluted weighted
average shares decreased by 3.4% for the first six
months due to the Company's treasury stock purchases
and a smaller effect of dilutive stock options (see
Note 3 to the Consolidated Financial Statements)
because of the lower average share price during the
first six months.

Liquidity and Capital Resources

Cash provided by operating activities was $16.2 million
in the first six months of 1999 compared to cash used
by operating activities of $8.8 million in the first
six months of 1998. This change reflects the increased
earnings in the first six months of 1999, along with
the change in working capital requirements between
periods. Cash provided by operating activities before
the changes in working capital requirements was $92.1
million in the first six months of 1999 compared to
$81.9 million in the first six months of 1998. Cash
used by changes in working capital was $75.9 million
and $90.7 million in the first six months of 1999 and
1998, respectively.

Capital expenditures were $38.7 million in the first
six months of 1999 compared to $63.3 million during the
first six months of 1998. These expenditures included
capitalized software of $1.2 million and $18.6 million
in the first six months of 1999 and 1998, respectively.
The balance is comprised of purchases of computer
equipment, office furniture and other costs related to
office openings and refurbishments.

Net cash provided from additional borrowings was $23.1
million and $91.1 million in the first six months of
1999 and 1998, respectively. The additional borrowings
in 1999 were primarily used to support the working
capital growth and to repurchase the Company's common
stock. The Company
repurchased 2.5 million common shares at a cost of $58.2 million
during the first six months of 1999. The additional borrowings
in 1998 were primarily used to support the working capital growth,
investment in new markets and capital expenditures.

Accounts receivable decreased to $1,654.1 million at
June 30, 1999 from $1,674.7 million at December 31,
1998. This decrease is primarily due to the effect of
the change in currency exchange rates during the first
six months of 1999 offset by the growth in many of the
Company's major markets. The change in exchange rates
negatively impacted the receivable balance by $149.5
million.

As of June 30, 1999, the Company had borrowings of
$139.5 million and letters of credit of $60.0 million
outstanding under its $415 million U.S. revolving
credit facility, and borrowings of $68.0 million
outstanding under its U.S. commercial paper program.
The commercial paper borrowings have been classified as
long-term debt due to the availability to refinance
them on a long-term basis under the revolving credit
facility.

On July 26, 1999, the Company issued euro200 million
in unsecured notes with an effective interest rate of
5.69%, due in July 2006. Net proceeds from the issuance
were used to repay amounts outstanding under the
Company's unsecured revolving credit agreement and the
commercial paper program.

The Company and some of its foreign subsidiaries
maintain separate lines of credit with foreign
financial institutions to meet short-term working
capital needs. As of June 30, 1999, such lines totaled
$154.9 million, of which $103.4 million was unused.

Year 2000

State of Readiness - In order to address Year 2000
compliance, the Company has initiated a comprehensive
project designed to eliminate or minimize any business
disruption associated with its information technology
("IT") and non-IT systems. In connection with this
project, all significant Company subsidiaries have done
systems assessments to determine what modifications
will be required and detailed plans and timetables have
been developed to complete and test the necessary
remediation.

Primarily due to changing customer requirements, the
Company is in the process of converting and upgrading
many of its IT systems, and these new IT systems are
Year 2000 compliant. For those IT systems not otherwise
being converted or upgraded, remediation efforts have
been planned. In the U.S., initial remediation efforts
are completed, and testing of this remediation is
substantially complete. Any further remediation needed
as a result of the testing, and additional testing of
the system interfaces, will continue through August of
1999. For all other significant subsidiaries, initial
remediation is completed and ongoing testing of the
remediation is scheduled to be completed during the
third quarter of 1999. The ongoing remediation or
replacement of all critical non-IT systems is scheduled
to be completed by the third quarter of 1999. The
Company presently believes that with these conversions,
upgrades and remediation efforts, all significant Year
2000 Issues related to the Company's systems will be
addressed.

In addition, the Company is contacting significant
franchisees, vendors and customers to determine the
extent to which the Company is vulnerable to those
third parties' potential failure to remediate their own
systems to address Year 2000 Issues. The Company has
sent information to all U.S. and international
franchisees regarding the business risks associated
with the Year 2000. In addition, the Company contacted
all franchisees requesting information regarding their
Year 2000 status. The results will be used to assess
the Year 2000 operational risks of our franchisees.
Despite the Company's diligence, there can be no
guarantee that companies that the Company relies upon
to conduct its day-to-day business will be compliant.
Costs - To date, the Company has used both external and
internal resources for the assessment, remediation and
testing of its systems. As of June 30, 1999,
approximately $8.4 million has been expensed for
external resources. The total expense for external
resources is currently estimated to be $10 million to
$12 million. Hardware purchases directly related to
the project, which are expensed as incurred, have been
minimal as of June 30, 1999, and the Company does not
expect any remaining hardware purchases to be
significant. The cost of internal resources is
aggregated with the Company's information technology
cost centers. The total cost of the project is not
expected to have a material impact on the Company's
financial position, results of operations or cash
flows.

Risks - With respect to the risks associated with its
systems, the Company believes that the most reasonably
likely worst case scenario is that the Company will
experience a number of minor system malfunctions and
errors in the early days and weeks of the Year 2000.
The Company does not expect these problems to have a
material impact on the Company's ability to place and
pay workers or invoice customers.

With respect to the risks associated with third
parties, the Company believes that the most reasonably
likely worst case scenario is that some of the
Company's franchisees, vendors and customers will not
be compliant. Failure by these companies, or any
governmental entities, to remediate their systems on a
timely basis could have a material adverse effect on
the Company.

Contingency Plans - The Company is currently preparing
to handle the most reasonably likely worst case
scenarios described above. The Company is evaluating
and developing contingency plans for these risks and is
scheduled to have them completed by October of 1999.

The Euro

On January 1, 1999, eleven of the fifteen member
countries of the European Union (the "participating
countries") established fixed conversion rates between
their existing sovereign currencies (the "legacy
currencies") and the Euro and have agreed to adopt the
Euro as their common legal currency. The legacy
currencies will remain legal tender in the
participating countries as denominations of the Euro
between January 1, 1999 and January 1, 2002 (the
"transition period"). During the transition period,
public and private parties may pay for goods and
services using either the Euro or the participating
country's legacy currency.

The Company is currently assessing the impact of the
Euro in its business operations in all participating
countries. In some countries, the Company has made
system modifications to generate dual currency
invoices, allowing customers to pay in either the
legacy currency or in Euro. To date, the Company has
not had significant customer requests for specific
invoicing or reporting formats that are not handled by
the current systems. However, modifications will be
necessary to convert database information to report
information in either Euro or in both currencies. Such
modifications will occur throughout the transition
period and will be coordinated with other system-
related upgrades and enhancements. The Company
expenses all such system modification costs as
incurred. To date, all modification costs have been
minimal, and the Company currently does not expect
significant costs related to future modifications.

Forward-Looking Statements

Certain information included or incorporated by
reference in this filing and identified by use of the
words `expects,' `believes,' `plans' or the like
constitutes forward-looking statements, as such term is
defined in Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934.
In addition, any information included or incorporated
by reference in future filings by the Company with the
Securities and Exchange Commission, as well as
information contained in written material, releases and
oral statements issued by or on behalf of the Company
may include forward-looking statements. All
statements which address operating performance, events or
developments that the Company expects or anticipates
will occur or future financial performance are forward-
looking statements.

These forward-looking statements speak only as of the
date on which they are made. They rely on a number of
assumptions concerning future events and are subject to
a number of risks and uncertainties, many of which are
outside of the Company's control, that could cause
actual results to differ materially from such
statements. These risks and uncertainties include, but
are not limited to:

* material changes in the demand from larger
customers, including customers with which the Company
has national or global arrangements
* availability of temporary workers or increases in
the wages paid to these workers
* competitive market pressures, including pricing
pressures
* ability to successfully invest in and implement
information systems
* unanticipated technological changes, including
obsolescence or impairment of information systems
* changes in customer attitudes toward the use of
staffing services
* government or regulatory policies adverse to the
employment services industry
* general economic conditions in international
markets
* interest rate and exchange rate fluctuations

The Company disclaims any obligation to update publicly
or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

Item 3 - Quantitative and Qualitative Disclosures About Market Risk

The Company's annual report on Form 10-K contains
certain disclosures about market risks affecting the
Company. There have been no material changes to the
information provided which would require additional
disclosures as of the date of this filing except for
the issuance of the euro200 million unsecured notes in
July 1999 (see the Liquidity and Capital Resource
section of the Management Discussion and Analysis for
additional information). These notes will be accounted
for as a hedge of the Company's net investment in
European subsidiaries with Euro functional currencies.
Since the Company's net investment in these
subsidiaries exceeds the amount of the notes, all
translation gains or losses related to the these notes
will be recorded as a component of Other comprehensive
income.
PART II - OTHER INFORMATION


Item 4 - Submission of Matters to a Vote of Security Holders

On April 26, 1999, at the Company's Annual Meeting of
Shareholders (the "Annual Meeting") the shareholders of
the Company voted to: (1) Elect two directors to serve
until 2002 as Class III directors, (2) increase the
number of shares authorized for issuance under the 1994
Executive Stock Option and Restricted Stock Plan of
Manpower Inc. and (3) ratify the appointment of Arthur
Andersen LLP as the Company's independent auditors for
1999. In addition Messrs. Dennis Stevenson and John R.
Walter continued as Class I directors (term expiring
2000), and Messrs. J. Ira Harris, Terry A. Hueneke,
Newton N. Minow and Gilbert Palay continued as Class II
directors (term expiring 2001). The results of the
proposals voted upon at the Annual Meeting are as
follows:

Broker
For Against Withheld Abstain Non-Vote

1. a) Election of Dudley
J. Godfrey, Jr. 60,241,162 - 1,537,658 - -

b) Election of Marvin
B. Goodman 60,761,400 - 1,017,420 - -

2. Increase the number
of shares authorized for
issuance under the 1994
Executive Stock Option
and Restricted Stock
Plan 42,293,133 19,230,932 - 254,755 -

3. Ratification of
Arthur Andersen LLP as
independent auditors 61,550,133 61,970 - 166,717

Item 5 - Other Information


On July 26, 1999, the Company issued euro200
million in unsecured notes with an effective
interest rate of 5.69%, due in July 2006. The
Notes were offered outside the United States in
reliance on Regulation S under the Securities Act of
1933, as amended, through a group of managers led
by Goldman Sachs International. The Company
applied to list the Notes on the Luxembourg Stock
Exchange.
Item 6 - Exhibit and Reports on Form 8-K

(a) Exhibits

10.1 Stock Option Agreement between Manpower Inc. and
John R. Walter dated April 26, 1999.

10.2 Advisory Services Agreement between Manpower, Inc.,
Ashlin Management Company
and John R. Walter dated April 26, 1999.

10.3 Nonstatutory Stock Option Agreement between
Manpower Inc. and Mitchell S. Fromstein dated April 26, 1999.

10.4 Agreement between Manpower Inc. and Mitchell S.
Fromstein dated April 26, 1999.

27 Financial Data Schedule

(b) Reports on Form 8-K

The Company filed one current report on Form 8-
K on May 3, 1999 with respect to Item 5 - Other
Events for the period ended April 26, 1999.

The Company filed one current report on Form 8-
K on June 28, 1999 with respect to Item 5 -
Other Events for the period ended June 25, 1999.
SIGNATURES




Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto
duly authorized.




MANPOWER INC.
--------------------------
(Registrant)






Date: August 16, 1999 /s/ Michael J. Van Handel
----------------------------
Michael J. Van Handel
Senior Vice President
Chief Financial Officer,
Treasurer and Secretary
(Signing on behalf of the
Registrant and as the
Principal Financial
Officer and Principal
Accounting Officer)