ManpowerGroup Inc. (NYSE:MAN) Q2 2020 Earnings Conference Call - Final Transcript

Jul 20, 2020 • 08:30 am ET

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ManpowerGroup Inc. (NYSE:MAN) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to ManpowerGroup Second Quarter Earnings Results Conference Call. [Operator Instructions]. And now, I will turn the call over to ManpowerGroup Chairman and CEO, Jonas Prising. Sir, you may begin.

Executive
Jonas Prising

Good morning. Welcome to the second quarter conference call for 2020. On the call with me today is our Chief Financial Officer, Jack McGinnis. For your convenience, we have included our prepared remarks within the Investor Relations section of our website at manpowergroup.com. We will start by going through some of the highlights of the second quarter, then Jack will go through the operating results and the segments, our balance sheet and cash flow, and guidance for the third quarter. And I will then share some concluding thoughts before we start our Q&A session.

Before we proceed, Jack will now cover the Safe Harbor language.

Executive
Jack McGinnis

Good morning, everyone. This conference call includes forward-looking statements, including statements regarding the impact of the COVID-19 pandemic, which are subject to known and unknown risks and uncertainties. These statements are based on management's current expectations or beliefs. Actual results might differ materially from those projected in the forward-looking statements. We assume no obligation to update or revise any forward-looking statements.

Slide 2 of our earnings release presentation includes additional forward-looking statement considerations and important information regarding previous SEC filings and reconciliation of non-GAAP measures.

Executive
Jonas Prising

Thanks Jack. Since our last earnings call, the world has continued to be impacted by the health crisis which is now also a global economic and social crisis. Some countries in Latin America and parts of the U.S. continue to deal with the pandemic at elevated levels. Elsewhere in the world, the impact of the pandemic has been contained, and economies are slowly reopening.

With the easing of the lockdowns, people are gradually returning to a lifestyle we know is very different from the pre-pandemic life and workplace. The effects of COVID-19 made the second quarter one of the most challenging quarters in the history of our Company, but we were pleased to see the gradual business improvement as the quarter progressed.

Having said that, we recognize that we still have a long way to go to get back to normal levels of business activity. We are taking this opportunity to continue our drive towards the highest efficiency, while still preparing for growth when the economy rebounds and ensuring we make investments to position the business for profitable growth in the long term.

You will see in our Q2 financials that we partially offset the significant gross profit declines with aggressive SG&A reductions and generated an operating profit excluding the impairment charges. In this environment, we believe that it is critical to control every cost, and we are doing just that, mindful too to ensure that the organization is also able to seize the opportunities for growth. The plans that we put in place in March at the start of the crisis were executed throughout the second quarter.

This involved significant cost and collection actions that will continue during the third