Q3 2023 ManpowerGroup Inc Earnings Call

Speaker 1: Welcome to Manpower Group's third quarter earnings results conference call. You'll be put in listen-only mode until the question and answer time begins. This call is being recorded. If you care to drop off now, please do so. I would like to turn the call over to Manpower Group's Chairman and CEO , Mr. Jonas Prizing. Sir, you may begin.

Welcome to manpower group's third quarter earnings results conference call, you'll be put in a listen only mode until the question and answer time again.

This call is being recorded.

Care to drop off now please do so.

I'd like to turn the call over to your main product groups, Chairman and CEO, Mr. Jonas Prising, Sir you may begin.

Speaker 2: Welcome to the third quarter conference call for 2023. Our chief financial officer, Jack McGinnis, is with me today. For your convenience, we have included our prepared remarks within the investor relations sections of our website at the manportgroup.com.

Welcome to the third quarter conference call for 2023, our Chief Financial Officer, Jack Mcginnis is with me today.

For your convenience we have included our prepared remarks within the Investor relations sections of our website at <unk>.

Manpower group Dot com.

Speaker 2: I will start by going through some of the highlights of the quarter. Then Jack will go through the third quarter results and guidance for the fourth quarter of 2023. And I'll then share some concluding thoughts before we start our Q&A session. Jack will now go through the quarter results and guidance for the fourth quarter of 2023.

I will start by going through some of the highlights of the quarter.

Jack will go through the third quarter results and guidance for the fourth quarter of 2023, and I'll then share some concluding thoughts before we start our Q&A session.

Jack will now cover the Safe Harbor language.

Speaker 2: Good morning, everyone. This conference call includes forward-looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertain.

Good morning, everyone. This conference call includes forward looking statements, including statements concerning economic and geopolitical uncertainties, which are subject to known and unknown risks and uncertainties. These.

Speaker 2: 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.

These statements are based on management's current expectations or beliefs actual results might differ materially from those projected in forward looking statements, we assume no obligation to update or revise any forward looking statements.

Speaker 2: Slide two of our earnings release presentation further identifies forward-looking statements made in this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures.

Slide two of our earnings release presentation further identify as forward looking statements made in this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures.

Thanks Jack.

Speaker 3: I'd like to open by sharing our sadness at the devastating terrorist attacks on Israel and the unfolding car.

I'd like to open by sharing our sadness at the devastating terrorist attacks on Israel and the unfolding conflict.

Speaker 3: Vampire group has operated in Israel for over 60 years. I've just spoken with our Israeli colleagues this morning to express our heartfelt support and thank them for working tirelessly to help those impacted and still run the day-to-day operation.

Manpower group has operated in Israel for over 60 years Ive just spoken with our Israeli colleagues. This morning to express our heartfelt support and thank them for working tirelessly to help those impacted and still run the day to day operations.

Speaker 3: Amid the suffering that is ongoing, I am in awe of their resilience and dedication to take care of each other, their families, our clients and associates during these extremely challenging times.

And then the suffering that is ongoing I am and all of their resilience and dedication to take care of each other.

Families our clients and associates during these extremely challenging times.

Speaker 3: Turning to the broader environment, in recent weeks I've spent time with our teams and clients in Europe and North America.

Turning to the broader environment in recent weeks I've spent time with our teams and clients in Europe and North America.

Speaker 3: The topic at the forefront of my discussions with clients and business leaders is the global economic outlook. How things are looking now, how they may evolve, and how this is impacting labor markets and their hiring.

Topic at the forefront of my discussions with clients and business leaders as the global economic outlook. How things are looking now they may evolve and how this is impacting labor markets and their hiring plans.

Speaker 3: Many echo a sentiment of manageable headwinds in the short term, yet confirm their limited visibility on how this will evolve.

Many echo his sentiment of manageable headwinds in the short term yet confirm their limited visibility on how this will evolve.

Speaker 3: This is resulting in increasing cost reduction initiatives, hiring slowdowns and project start postponement.

Resulting in an increase in cost reduction initiatives hiring slowdowns and project start postponements.

Speaker 3: This sentiment tracks with the trends and data we see as well. Last quarter, we shared that broader economic pressures were building, particularly North America and Europe .

This sentiment trucks, where the trends in data that we see as well.

Last quarter, we shared that broader economic pressures, we're building, particularly North America and Europe.

Speaker 3: Over the last few months, we have seen these pressures increase with declining outputs in global manufacturing, slowing activity in services, and subdued hiring across some industries as companies pause new hiring and spending following a period of bullish hiring and investment post-pandemic.

For the last few months, we have seen these pressures increase with declining outputs and global manufacturing slowing activity in services and subdued hiring across some industries as companies paused, new hiring and spending following a period of bullish hiring and investment post pandemic.

Speaker 3: Just last week, I joined many global CEOs across every sector for the Conference Board Business Council meeting in Denver.

Just lastly on.

Joining to many global Ceos across every sector for the conference Board business Council meeting in Denver.

Speaker 3: where most reported reduced optimism compared to three months ago, and the general consensus was that economic slowing will continue in the short term.

We're most reported reduced optimism compared to three months ago and the general consensus was that economic slowing will continue in the short term.

Speaker 3: Yet there are bright spots. Business environments in Latin America and Asia-Pac remain solid.

Yet there are bright spots in the business environment in Latin America, and Asia Pac remains solid.

Speaker 3: And even in the regions most impacted by economic slowing, North America and Europe , consumer spending is holding, employment rates are strong, and workers continue to earn more and move up. Poor inflation is easing, albeit slow.

And even in the regions most impacted by economic slowing North America, and Europe consumer spending is holding employment rates are strong and workers continue to earn more and move up and core inflation is easing, albeit slowly.

Speaker 3: In this uneven and so intern environment, these organizations act the way they have done in past periods of increased uncertainty and economic headwinds, holding onto their existing permanent workforce and pulling back on staffing and permanent recruitment services in North America and Europe .

And this uneven uncertain environments. We saw organizations act the way they have done in past periods of increased uncertainty and economic headwinds holds.

Holding onto their existing permanent workforce and pulling back on staffing and permanent recruitment services in North America and Europe.

Speaker 3: Moving on to our financial results, in the third quarter, revenue was $4.7 billion, down 5% year over year in constant currency.

Moving onto our financial results for the third quarter revenue was $4 7 billion down 5% year over year in constant currency.

Speaker 3: A reported avidop for the quarter was $78 million.

Our reported EBITDA for the quarter was $7 million to $8 million.

Speaker 3: just before he's structuring Argentine a hyperinflation rate foreign exchange charges and a small loss on sale EBITDA was $117 million Representing a 36% decrease in constant currency year over year

Adjusted for restructuring, Argentina, Hyperinflationary foreign exchange charges, and a small loss on sale EBITA was $117 million, representing a 36% decrease in constant currency year over year.

Speaker 3: Reported A to DIE margin was 1.7% and adjusted A to DIE margin was 2.5%.

Reported EBITDA margin was one 7% and adjusted EBITA margin was two 5%.

Speaker 3: earnings per diluted share was 60 cents on a reported basis and $1.38 on an adjusted basis.

Earnings per diluted share.

<unk> 60 on a reported basis and $1 38 on an adjusted basis.

Speaker 3: Adjust the earnings per share. We're down 39% year-over-year in constant current.

Adjusted earnings per share were down 39% year over year in constant currency.

Speaker 3: Although the timing of a recovery is always hard to predict, decades of experience tell us that we must adjust to the existing reality while being ready to pivot quickly when the situation improves. Our industry is at the leading edge, and by this we mean, it is often the first to feel the impact going into an economic downturn and the first to benefit from improving outlooks on the other side.

Although the timing of a recovery is always hard to predict.

Decades of experience tells us that we must adjust to the existing reality, while being ready to pivot quickly when the situation improves our industry is that the leading edge and by this we mean it is often the first to feel the impact going into an economic downturn and the first to benefit from improving outlooks on the other side.

Speaker 3: Though today we are clearly in a slowing environment, labor markets overall are holding steady and transformation agendas continue, though at a more moderate time.

So today, we are clearly in a slowing environment labor markets overall are holding steady and transformation agenda continue though at a more moderate pace.

Speaker 3: Companies are reluctant to reduce their workforce or pause on initiatives to upskill and develop their people. And we see this evidenced in the demand for Experience Academy and Manpower MyPath offerings, which help people learn in-demand skills at scale and scale.

Companies are reluctant to reduce their workforce or pause on initiatives to upskill and develop their people and we see this evidenced in the demand for experienced academy and manpower might pass offerings, which help people learn in demand skills at scale and speed.

Speaker 3: In uncertain times, people and companies need trusted partners to show them a path to navigate the uncertain.

In uncertain times people and companies need trusted partners to show them a path to navigate the uncertainty.

Speaker 3: A value proposition to clients and candidates has never been more relevant. In our business model helps them absorb some of the pressures they're feeling today, and prepare to accelerate out of the downturn once the economic recovery begins.

Our value proposition to clients and candidates has never been more relevant and our business model helps them absorb some of the pressures they are feeling today and prepare to accelerate a bit of a downturn once the economic recovery begins again.

Speaker 3: Employers value the insight and data-led guidance on developing and executing an agile workforce strategy.

Lawyers valued insight and data led guidance on developing and executing an agile workforce strategy.

Speaker 3: We remain confident that our clear plan to properly grow the business by diversifying, digitizing and innovating is how we help our clients and candidates prepare for the future and be competitive for the long term, while managing the headwinds.

We remain confident that our clear plan to profitably grow the business by diversifying digitizing and innovating is how we help our clients and candidates prepare for the future and be competitive for the long term, while managing the headwinds today.

Speaker 3: But that's over to Jack. Take you through the finance.

Over to Jack to take you through the financials. Thanks.

Speaker 2: Thanks, Jonas. Revenue from the third quarter came in at the midpoint of our Consecurrency Guidance Range. Cross-Prophet large and came in.

Thanks Jonas.

It is in the third quarter came in at the midpoint of our constant currency guidance range.

Gross profit margin came in above our guidance range as adjusted EBITDA was $117 million, representing a 36% decrease in constant currency compared to the prior year period as.

Speaker 2: as adjusted, even though it was 117 million, representing a 36% decrease in constant currency compared to prior year period.

Speaker 2: As adjusted, EBITDA margin was 2.5% and came in at the midpoint of our guidance range, representing 120 basis points of decline year over year.

As adjusted EBITDA margin was two 5% and came in at the midpoint of our guidance range, representing a 120 basis points of decline year over year.

Speaker 2: During the quarter, your over-year foreign currency movement had an impact on our results.

During the quarter year over year foreign currency movements had an impact on our results.

Speaker 2: Well, currency translation drove about a 3% favorable impact to the U.S. dollar reported revenue trend compared to the constant currency decrease of 5%.

Foreign currency translation drove about a 3% favorable impact to the U S. Dollar reported revenue trend compared to the constant currency decrease of 5%.

Speaker 2: Organic days adjusted revenue can decrease 4% in the quarter.

Organic days adjusted revenue decreased 4% in the quarter.

Speaker 2: Turning to the EPS bridge, reported earnings per share was 60 cents and included 78 cents of charges related to restructuring, a non-cash-war and currency loss related to the translation of our hyperinflationary Argentina business, and a small loss on sale of our Philippines business.

Turning to the EPS Bridge reported earnings per share was <unk> 60, and included 78 cents of charges related to restructuring and noncash foreign currency loss related to the translation of our Hyperinflationary, Argentina business and a small loss on sale of our Philippines business.

Speaker 2: Argentine has required to be treated as a hyperinflationary economy and the non-cash currency translation losses reflect the devaluation of the Argentine pay-thode during the quarter. This is a non-cash accounting charge that our Argentine of business operates in their local current.

Argentina is required to be treated as a hyperinflationary economy and the noncash currency translation losses reflect the devaluation of the Argentine peso during the quarter.

This is a noncash accounting charges, our Argentina business operates in their local currency.

Speaker 2: Scruting these charges, adjusted EPS was $1.38. Walking from our guidance midpoint, our results improve the slightly better operational performance of 1 cent. A lower weighted average share counted or purchases in the quarter, which had a positive impact of 1 cent. A lower effect of tax rate, which had a positive impact of 2 cents.

Excluding these charges adjusted EPS was $1 38.

Walking from our guidance midpoint. Our results included a slightly better operational performance of <unk>, a lower weighted average share count to the repurchases in the quarter, which had a positive impact of <unk>.

The lower effective tax rate, which had a positive impact of <unk>.

Speaker 2: A foreign currency impact that was four cents worse than our guidance, just the weakening of the euro and the pound during the second half of the quarter, and interest in other expenses, which had a positive one cent impact. Next, let's review.

Foreign currency impact that was <unk> <unk> worse than our guidance just the weakening of the euro and the pound during the second half of the quarter.

In interest and other expenses, which had a positive <unk> impact.

Next let's review our revenue by business line.

Speaker 2: Year over year on an organic currency basis the manpower brand reported a revenue decline of 3%. The experience brand declined by 10% and Town Solutions brand declined by 14%. The experience decline represented lower activity from both enterprise and convenience customer segment.

Year over year on an organic constant currency basis, our manpower brand reported a revenue decline of 3%.

Experienced brand declined by 10% and talent solutions brand declined by 14%.

Experienced decline represented lower activity from both enterprise and convenience customer segments.

Speaker 2: The man from Enterprise Technology Clients continue to be weak. Within Town Solutions, we saw a significant year over year revenue to Client and RPO, as well as an expected sequential softening of activity from the second quarter.

<unk> from enterprise technology clients continued to be weak with Intel solutions, we saw a significant year over year revenue decline in our PTO as well as an expected sequential softening of activity from the second quarter.

Speaker 2: RMSP business saw revenue declines in the quarter as we reduced certain lower margin activity. All right management experience significant year over year revenue growth on higher out placement volumes in the quarter with revenue levels fairly steady from the second quarter.

Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity.

Right management experienced significant year over year revenue growth on higher outplacement volumes in the quarter with revenue levels fairly steady from the second quarter.

Speaker 2: Looking at our gross profit margin in detail, our gross margin came in at 17.6%.

Looking at our gross profit margin in detail our gross margin came in at 17, 6% staffing.

Speaker 2: Staffing margin contributed to a 10 basis point reduction due to mixed shifts as pricing remains strong.

Staffing margin contributed to a 10 basis point reduction due to mix shifts as pricing remained strong.

Speaker 2: permanent recruitment, including talent solutions RPO, contributed at 70 basis point GP margin reduction as permanent hiring demand continued to stop.

Permanent recruitment, including talent solutions our Po.

Contributing 70 basis point GP margin reduction as permanent hiring demand continued to soften.

Speaker 2: Brighten the management career transition within talent solutions, contributed 30 basis points of improvement, as outplacement activity reflected strong year-over-year growth with gross profit studies from the second quarter level. Other items resulted in a 20-

Bright management career transition within talent solutions contributed 30 basis points of improvement as outplacement activity reflected strong year over year growth with gross profit steady from the second quarter level.

Other items resulted in a 20 basis point margin decrease.

Speaker 2: Moving on to the gross profit by business line. During the quarter, manpower brand comprised 59% of gross profit. Our experienced professional business comprised 25% and talent solutions comprised 16%.

Moving on to the gross profit by business line during the quarter manpower brand comprised 59% of gross profit our experienced professional business comprised 25%.

And talent solutions comprised 16%.

Speaker 2: During the quarter, our consolidated gross profit decreased 9% on an organic currency basis year over year.

During the quarter, our consolidated gross profit decreased 9% on an organic constant currency basis year over year.

Our manpower brand reported an organic gross profit decrease of 5% in constant currency year over year.

Speaker 2: Organic growth profit and our experience brand decreased 14% in constant currency year over year. permanent recruitment and other services within experience drove the higher rate of overall GP decrease for the brand.

Organic gross profit in our experienced brand decreased 14% in constant currency year over year permanently.

Permanent recruitment and other services within express drove the higher rate of overall GP decrease for the brand.

Speaker 2: Organic gross profit and counter-illusions decrease 15% in constant currency year over year. This is mainly driven by declines in RPO as permanent recruitment continue to weaken during the quarter.

Organic gross profit in town solutions decreased 15% in constant currency year over year.

This was mainly driven by declines in our Po as permanent recruitment continued to weaken during the quarter.

Speaker 2: was partially offset by right management on increased outplacement activities.

This was partially offset by write management on increased outplacement activity.

Speaker 2: MSP experience a very slight decrease in gross profit in the quarter.

MSP experienced a very slight decrease in gross profit in the quarter.

Speaker 2: Report of the SG&A expense from the quarter was $752 million.

Reported SG&A expense in the quarter was $752 million excluding.

Speaker 2: The Scrooving Restructuring POS SGNA decreased 2.2% year over year on an organic conste currency basis. Representing a sequential decrease from the flat level in the second quarter on the same base.

Excluding restructuring costs SG&A decreased two 2% year over year on an organic constant currency basis, representing a sequential decrease from the flat level in the second quarter on the same basis.

Speaker 2: This reflects significant cost actions during the quarter, resulting in a quarterly head count reduction of 4% sequentially, and a reduction of 7% year over year, which will result in further cost reductions into the fourth quarter.

This reflects significant cost actions during the quarter, resulting in a quarterly head count reduction of 4% sequentially and.

And a reduction of 7% year over year, which will result in further cost reductions into the fourth quarter.

Speaker 2: At the same time, we continue to invest in transformation programs included in corporate expats.

At the same time, we continued to.

Invest in transformation programs included in corporate expense.

Speaker 2: Through that strategic investments, expected to drive medium and long-term productivity and efficiency enhancements across their technology and finance functions worldwide.

These are strategic investments expected to drive medium and long term productivity and efficiency enhancements across our technology and finance functions worldwide.

Speaker 2: The underlying S-GNA decreases largely consisted of operational costs of 16 million offset by currency changes of 19 million.

Underlying SG&A decrease was largely consisted of operational costs of $16 million offset by currency changes of $19 million.

Speaker 2: Adjusted SGNA expenses as a percentage of revenue represented 15.3% in constant currency in the third quarter, reflecting lower operational leverage on the revenue decline. Perseucturing costs total 38 million.

Adjusted SG&A expenses as a percentage of revenue represented 15, 3% in constant currency in the third quarter, reflecting lower operational leverage on the revenue decline.

Restructuring costs totaled $38 million.

Speaker 2: The American segment comprised 24% of consolidated revenue. Revenue in the quarter was 1.1 billion, representing a decrease of 7% compared to the prior year period on the constant currency base.

The Americas segment comprised 24% of consolidated revenue.

In the quarter was $1 1 billion, representing a decrease of 7% compared to the prior year period on a constant currency basis.

Speaker 2: Report of LUP was 38 million and include 6 million in restructuring costs. As adjusted, LUP was 44 million and LUP margin was 4%.

Reported OUP was $38 million and includes $6 million of restructuring costs.

Adjusted <unk> was $44 million and OUP margin was 4%.

Speaker 2: The majority of their structuring costs related to North America with the balance recorded in Latin America.

The majority of the restructuring costs related to North America with the balance recorded in Latin America.

Speaker 2: The US is the largest country in the America segment comprising 68% of segment revenue.

The U S is the largest country in the Americas segment, comprising 68% of segment revenues.

Speaker 2: Revenue in the U.S. was $753 million during the quarter, representing a 14% days adjusted decrease compared to the prior year.

Revenue in the U S was $753 million during the quarter, representing a 14% days adjusted decrease compared to the prior year.

Speaker 2: As adjusted to exclude restructuring costs, OUP for our US business was 29 million in the quarter, representing a decrease of 52% from the prior year. As adjusted, OUP margin was 3.8%.

Adjusted to exclude restructuring costs OUP for our U S business was $29 million in the quarter, representing a decrease of 52% from the prior year.

As adjusted OUP margin was three 8%.

Speaker 2: Within the U.S., the manpower brand comprised 25% of gross profit during the quarter. Revenue for the manpower brand in the U.S. decreased 16% on a day's adjusted basis during the quarter. Representing an improvement from the 19% decrease in the second quarter.

Within the U S demand power brand comprised 25% of gross profit during the quarter revenue for the manpower brand in the U S decreased 16% on a days adjusted basis during the quarter, representing an improvement from the 19% decrease in the second quarter.

Speaker 2: Experience brand in the US comprises 46% of gross profit in the quarter. Within Experience in the US, IT skills comprise approximately 90% of revenue.

Experienced brand in the U S comprised 46% gross profit in the quarter.

With an experienced in the U S. It skills comprised approximately 90% of revenues.

Speaker 2: On a day's adjusted basis, experienced US revenue decreased 15% as we anniversary significant 2022 organic growth of 16%.

On a days adjusted basis experienced U S revenue decreased 15% as we anniversary significant 2022 organic growth of 16%.

Speaker 2: As referenced earlier, the year-goal period reflected significant growth from enterprise clients who have had weak demand in the current year.

As referenced earlier the year ago period reflected significant growth from enterprise clients, who have had weak demand in the current year.

Speaker 2: Town solutions in the U.S. contributed 29% to gross profit and experienced revenue decline of 18% in the quarter. This was driven by a decrease in RPO revenues in the U.S. As permanent hiring programs continued at lower levels in the third quarter.

<unk> solutions in the U S contributed 29% of gross profit and experienced revenue decline of 18% in the quarter. This was driven by a decrease in <unk> revenues in the U S. As permanent hiring programs continued at lower levels in the third quarter.

Speaker 2: The USMSP business felt revenue decline as we reduced some lower margin activity. I'll place an activity within our right management business future policy.

The U S. MSP business saw revenue decline as we reduce some lower margin activity.

Placement activity within our right management business drove strong revenue increases.

Speaker 2: In the U.S., RPO, MSP, and right management all experience relatively steady revenue levels from the second cold quarter.

In the U S <unk> MSP and right management, all experienced relatively steady revenue levels from the second quarter.

Speaker 2: In the fourth quarter of 2023, for our U.S. businesses overall, we expect a slightly improved rate of year over year to climb in revenues as compared to the third quarter.

In the fourth quarter of 2023 for our U S businesses overall, we expect a slightly improved rate of year over year decline in revenues as compared to the third quarter.

Speaker 2: Southern Europe revenue comprised 45% of consolidated revenue in the quarter.

Southern Europe revenue comprised 45% of consolidated revenue in the quarter.

Speaker 2: Revenue in Southern Europe came in at 2.1 billion, representing a 3% decrease in organic constant current.

Revenue in Southern Europe came in at $2 1 billion, representing a 3% decrease in organic constant currency.

Speaker 2: Report of LUP with $84 million, includes $4 million of restructuring costs.

<unk> was $84 million and includes $4 million of restructuring costs as.

Speaker 2: As adjusted, OUP was 88 million and OUP margin was 4.2%. The majority of the restructuring charges related to reductions in the 7-Europe regional head-off.

As adjusted OUP was $88 million and OUP margin was four 2% the majority of the restructuring charges related to reductions in the southern Europe Regional head office team.

Speaker 2: France revenue comprised 57% of the southern Europe segment and revenue equaled 1.2 billion in the quarter. Down 2% on a day's adjusted constant currency base.

France revenue comprised 57% of southern Europe segment, and revenue equaled $1 2 billion in the quarter down 2% on a days adjusted constant currency basis.

Speaker 2: After adjusting for modest restructuring charges, adjusted OUP for our France business was $49 million in the quarter representing a decrease of 20% in constant currency. Adjusted OUP...

After adjusting for modest restructuring charges adjusted OUP for our France business was $49 million in the quarter, representing a decrease of 20% in constant currency.

Adjusted OUP margin was 4%.

Speaker 2: We are estimating the year over your constant currency revenue trend in the fourth quarter for France to represent a modest further decline from the third quarter trend based on October activity today.

We are estimating the year over year constant currency revenue trend in the fourth quarter for France to represent a modest further decline from the third quarter trend based on October activity to date.

Speaker 2: Revenue in Italy equal 414 million in the quarter and was down 2% on a day's adjusted constant currency base.

Revenue in Italy, equaled $414 million in the quarter and was down 2% on a days adjusted constant currency basis.

Speaker 2: OUP equal 27 million and OUP margin was 6.5%.

P equaled $27 million and OUP margin was six 5%.

Speaker 2: We expect a similar rate of constant currency revenue defined in the fourth quarter compared to the third quarter.

We expect a similar rate of constant currency revenue decline in the fourth quarter compared to the third quarter.

Speaker 2: A Northern Europe segment COVID-19% of consolidated revenue in the quarter. Revenue of 914 million represented at 10% decline in constant current.

Our northern Europe segment COVID-19% of consolidated revenue in the quarter.

Revenue of $914 million represented a 10% decline in constant currency.

Speaker 2: After excluding restructuring costs of 28 million, adjusted OUP with negative 3 million, no U.P. margin was negative 0.4%.

After excluding restructuring costs of $28 million adjusted OUP was negative $3 million <unk> margin was negative <unk>, 4%.

Speaker 2: The restructuring charges represented 15 million in Germany, largely related to head office rights sizing and related activities in view of the ongoing pro-Servia line down.

The restructuring charges represented $15 million in Germany, largely related to head office, right sizing and related activities and view of the ongoing pro Serbia wind down.

Speaker 2: 7 million in the Nordex may be related to workforce optimization within the businesses and modest additional charges in the UK, the Netherlands, and belt.

$7 million in the Nordics really related to workforce optimization within the businesses and.

And modest additional charges in the UK, Netherlands and Belgium.

Speaker 2: Our largest market in northern Europe segment is the UK, which represented 35% of segment revenues in the quarter.

Our largest market in northern Europe segment is the UK, which represented 35% of segment revenues in the quarter.

Speaker 2: During the quarter, UK revenues decreased 15% on a day's adjusted currency.

During the quarter UK revenues decreased 15% on a days adjusted constant currency basis.

Speaker 2: This reflects an additional decline from the 12% decrease in the second quarter on the same base.

Reflects an additional decline from the 12% decrease from the second quarter on the same basis, we expect a similar rate of constant currency revenue decline in the fourth quarter compared to the third quarter.

Speaker 2: We expect a similar rate of conste currency revenue to decline in the fourth quarter compared to the third quarter.

Speaker 2: In Germany, revenues increase 4% in days adjusted constant currency in the quarter, representing three consecutive quarters of growth driven by our manpower business, particularly due to the strength in the automotive sector.

In Germany revenues increased 4% and days adjusted constant currency in the quarter, representing three consecutive quarters of growth driven by our manpower business, particularly due to the strength in the automotive sector.

Speaker 2: The previously announced wind down of our ProServia Manage Service Business in Germany is advancing with significant progress with the workers' councils and impacted clients during the quarter.

The previously announced wind down of our Pro service managed service business in Germany is advancing with significant progress with the Workers' Council and impacted clients during the quarter.

Speaker 2: We are tracking to conclude all wind down related actions by the end of the year with some remaining transition activity, concluding through the first half of 2024, which we will carve out separately.

We are tracking to conclude all wind down related actions by the end of the year with some remaining transition activity, including through the first half of 2020 for which we will carve out separately.

Speaker 2: We anticipate additional restructuring charges related to the wind down in the fourth quarter and provide a further update when we announce our fourth quarter earnings.

We anticipate additional restructuring charges related to the wind down in the fourth quarter and will provide a further update when we announce our fourth quarter earnings.

Speaker 2: The service business has been a significant drag on our Germany operations and completion of the wind down activity will improve profitability going forward.

Our survey business has been a significant drag on our Germany operations and the completion of the wind down activity will improve profitability going forward.

Speaker 2: Overall, on the fourth quarter, we are expecting a slightly lower rate of constaturrency revenue growth compared to the third quarter trend.

Overall in the fourth quarter, we are expecting a slightly lower rate of constant currency revenue growth compared to the third quarter trend.

Speaker 2: In the Netherlands, revenue decreased 5% on the day's adjusted on the currency basis, and this represented a slightly improved rate of decline from the second quarter on the same base.

In the Netherlands revenue decreased 5% on a days adjusted constant currency basis, and this represented a slightly improved rate of decline from the second quarter on the same basis.

Speaker 2: The Asia-Pacific Middle East segment comprises 12% of total company revenue. In the quarter, revenue was down 2% in currency to $565 million.

The Asia Pacific Middle East segment comprises 12% of total company revenue.

In the quarter revenue was down 2% in constant currency to $565 million.

Speaker 2: After excluding monetary structuring costs related to our Australia business, adjusted WP was 25 million and OUP margin was 4.4%.

After excluding modest restructuring costs related to Australia business, adjusted OUP was $25 million and OUP margin was four 4%.

Speaker 2: The largest market in the 8kme segment is Japan, which represented 49% of segment revenues in the quarter.

The largest market in the <unk> segment is Japan, which represented 49% of segment revenues in the quarter.

Speaker 2: Revenue in Japan grew 10% in days adjusted constant currency. We remain very pleased with the consistent performance of our Japan business, and we expect continued strong revenue growth in the fourth quarter.

Revenue in Japan grew 10% and days adjusted constant currency, we remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the fourth quarter.

Speaker 2: We also completed the sale of our Philippines business during the quarter, which transitions into a man-polar franchise that's going forward.

We also completed the sale of our Philippines business during the quarter, which transitions into a manpower franchise going forward.

I'll now turn to cash flow and balance sheet and.

Speaker 2: In the third quarter, free cash flow represented $245 million compared to $254 million in the prior year.

In the third quarter free cash flow represented $245 million compared to $254 million in the prior year.

Speaker 2: At the end of the third quarter, day sales outstanding were flat at 59 days. During the third quarter, capital expenditures represented 21 million.

At the end of the third quarter days sales outstanding were flat at 59 days during.

During the third quarter capital expenditures represented $21 million.

Speaker 2: January 3rd, quarter rue purchased $636,000 shares of SPAC for $50 million.

During the third quarter, we repurchased 636000 shares of stock for $50 million.

Speaker 2: As of September 30th, we have 293,000 shares remaining for a repurchased under the share program approved in August of 2021. And the additional 5 million shares remaining for a repurchased under the share program approved in August of 2023.

As of September 30, we have 293000 shares remaining for purchase under the share program approved in August of 2021, and an additional 5 million shares remaining for repurchase under the share program approved in August of 2023.

Speaker 2: Our balance sheet ended the quarter with cash of 571 million and total debt of 962 million. Net debt equal 391 million at quarter-end. Our debt ratio is a quarter-end, reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of 1.41 and total debt to total capitalization at 29.

Our balance sheet ended the quarter with cash of 571 million and total debt of $962 million net.

Net debt equaled 391 million at quarter end.

Our debt ratios at quarter end reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of one for one and total debt to total capitalization at 29%.

Speaker 2: Are debt and credit facilities remained unchanged during the cold border?

Debt and credit facilities remained unchanged during the quarter.

Speaker 2: Next, I'll review our outlook for the fourth quarter of 2023. Based on trends in the third quarter and October activity today, our forecast is cautious and anticipates that the fourth quarter will continue to be challenging with further declines in our man-powered businesses in Europe .

Next I'll review, our outlook for the fourth quarter of 2023.

Based on trends in the third quarter and October activity to date, our forecast is cautious and anticipate that the fourth quarter will continue to be challenging with further declines in our manpower businesses in Europe.

Speaker 2: Our forecast also anticipates a significant reduction in activity in our Israel business due to the current conflict.

Our forecast also anticipates a significant reduction in activity in our Israel business due to the current conflict.

Speaker 2: Our forecast also anticipates ongoing slowing of permanent recruitment activity and further offsets by cost actions being taken.

Our forecast also anticipates ongoing slowing of permanent recruitment activity and further offset by cost actions being taken.

Speaker 2: We are forecasting underlying earnings per share for the fourth quarter to be in the range of $1.17 to $1.27, which includes an unfaerable foreign currency impact of one cent per share.

We are forecasting underlying earnings per share for the fourth quarter to be in the range of $1 17 to $1 27.

Which includes an unfavorable foreign currency impact of <unk> <unk> per share.

Speaker 2: We have disclosed our foreign currency translation rate estimates at the bottom of the guidance slide.

We have disclosed our foreign currency translation rate estimates at the bottom of the guidance slide.

Speaker 2: Our Consecurrency Revenue Guidance Range is between a decrease of 4% and 8%. And at the midpoint, represents a 6% decrease.

Our constant currency revenue guidance range is between a decrease of 4% and 8% at the midpoint represents a 6% decrease.

Speaker 2: The impact of net dispositions in less working days contributes to an organic day's adjusted conste currency revenue trend of about a 5.5% decrease at the midpoint.

The impact of net dispositions and less working days contributes to an organic days adjusted constant currency revenue trend of about a five 5% decrease at the midpoint.

Speaker 2: This represents an additional 1% decrease from the third quarter trend ignoring rounding on the same base.

This represents an additional 1% decrease from the third quarter trend ignoring rounding on the same basis.

Speaker 2: We expect our EBITDA margin during the fourth quarter to be down 110 bases points at the midpoint compared to the prior year.

We expect our EBITDA margin during the fourth quarter to be down 110 basis points at the midpoint compared to the prior year.

Speaker 2: We estimate that the effect of tax rig for the fourth quarter will be 32.5%, which reflects the mixed effect of lower earnings from lower tax geographies in the current environment with minimal expected offsetting taxides.

We estimate that the effective tax rate for the fourth quarter will be 32, 5%, which reflects the mix effect of lower earnings from lower tax geographies in the current environment with minimal expected offsetting tax items.

Speaker 2: Compared to our previous estimate of a 30% tax rate before the worsening conditions, this update represents a 5% reduction in a fourth quarter EPS.

Third to our previous estimate of a 30% tax rate before the worsening conditions.

This update represents a 5% reduction in our fourth quarter EPS.

Speaker 2: When business and our lower rate geographies begin to improve, the tax rate will begin to return to the lower rate.

When business in our lower rate geographies begin to improve the tax rate will begin to return to the lower rates.

Speaker 2: As we consider other tax-related matters for 2024, I wanted to provide a brief update on the reduction of the French business tax, known as CVAE, based on recent development.

As we consider other tax related matters for 2024 I wanted to provide a brief update on the reduction of the French business tax known as CVA E. Based on recent developments previously the French government has announced their intention to fully abolished the remaining component of the French business tax in 2024.

Speaker 2: Previously, the French government had announced their intention to fully abolish the remaining component of the French business tax in 2024.

Speaker 2: The preliminary French budget was publicized in late September and instead announced that the remaining component of the French business tax would now be abolished on a pro-rata basis over the next four years.

Preliminary French budget was publicized in late September and instead announced that the remaining component of the French business tax would now be abolished on a pro rata basis over the next four years.

Speaker 2: As a result, the additional 1.5% improvement in our global effective tax rate from the abolishment of the CVEAE will be spread over the next four years, then anticipated reduction of about 35 basis points in 2024.

As a result, the additional one 5% improvement in our global effective tax rate from the abolishment of the CVA will be spread over the next four years, the anticipated reduction of about 35 basis points in 2024.

Speaker 2: We will continue to monitor any developments on the France budget as is reviewed by the Parliament through year-end.

We will continue to monitor any developments on the France budget as is reviewed by the parliament through year end.

Speaker 2: As usual, our guidance does not incorporate restructuring charges, or additional share repurchases, and we estimate our weighted average shares to be 49.9 million.

As usual our guidance does not incorporate restructuring charges or additional share repurchases and we estimate our weighted average shares to be $49 9 million.

Speaker 2: As I mentioned, we do expect to have additional restructuring charges associated with the wind down of our Pro-Serbian Manor Service Business in Germany, and we will disclose those and any additional restructuring charges separately when we report our fourth quarter earnings.

As I mentioned, we do expect to have additional restructuring charges associated with the wind down of our <unk> managed service business in Germany, and we will disclose those and any additional restructuring charges separately. When we report our fourth quarter earnings are.

Speaker 2: Our guidance also does not include the impact of the non-tash currency translation adjustment for our hyperinflationary Argentina business, and we will also report that separately. I will now turn it back to Jonas.

Our guidance also does not include the impact of the noncash currency translation adjustments for our Hyperinflationary, Argentina business and we will also report that separately I will now turn it back to you on this thanks Jack.

Speaker 3: On our last call, I shared that we're adapting to the current market environment and will not shy away from taking decisive actions that deliver on our strategy to simplify our operations and maximize return on our investment.

On our last call I shared that we're adapting to the current market environment, and we will not shy away from taking decisive actions that deliver on our strategy to simplify operations and maximize return on our investments.

Speaker 3: In the third quarter, we continue to execute against this blast.

In the third quarter, we continued to execute against this plan.

Speaker 3: Our experienced leadership team is using a fine point pen versus a broad brush to manage costs and invests for growth. And we're confident that our actions will preserve margin in the current environment, ready for the rebound when it occurs, and be more efficient in the loan.

Our experienced leadership team is using a fine point pen versus the broad brush to manage costs and invest for growth and we're confident that our actions will preserve margin in the current environment ready for the rebound when it occurs and be more efficient in the long term.

Speaker 3: We have been executing a transformation agenda in support of our diversity education, digitization, and innovation strategy for several years.

We have been executing a transformation agenda and supportive of our diversification digitization and innovation strategy for several years.

Speaker 3: We're not doubling down on centralized systems and global standardized processes to drive economic benefit across our finance and global technology funds.

We're not doubling down on centralized systems and global standardized processes to drive economic benefit across our finance and global technology functions.

Speaker 3: By leveraging leading global platforms and driving their adoption, we will enable country teams to focus on strategic and operational decision-making so we can execute in the market at speed and increased market share.

By leveraging leading global platforms and driving the adoption, we will enable country teams to focus on strategic and operational decision making.

We can execute in the market at speed and increased market share.

Speaker 3: We're excited about the opportunity to leverage our global IT and finance infrastructure to automate non-value added tasks, to drive recruited productivity, and generate valuable client and candidate in.

We're excited about the opportunity to leverage our global it and.

Finance infrastructure to automate non value added tasks to drive recruiter productivity and generates valuable client and candidate insights.

Speaker 3: Our diversification plan is how we accelerate growth of higher margin business across all our brands. For manpower, this means building loyalty with skilled candidates so we can deliver best and class talent in both permanent and temporary staffing. In labor markets, we believe will structurally be more constrained at due to demographics and shifting skills.

Our diversification plan is how do we accelerate growth of higher margin business across all our brands for manpower. This means building loyalty with skilled candidates. So we can deliver best in class talent in both permanent and temporary staffing and labor markets. We believe we're structurally be more constrained due to demographics and shifting SKU.

Those needs.

Speaker 3: Our own research and data tells us that people want to work for companies they trust and believe in and who will guide them to move up and earn more.

Our own research and data tell us that people want to work for companies. They trust and believe in and who will guide them to move up and earn more.

Speaker 3: I am delighted that our new Man Park campaign, Human Power, launches in many of our key markets.

I am delighted that our new manpower campaign human power launches in many of our key markets. This week.

Speaker 3: strengthening our positioning for candidates as an employer of choice with the data, expertise, and talent and teams to guide them to achieve their potential as they progress their career joy.

Strengthening our positioning for candidates as an employer of choice with the data expertise and talent and teams to guide them to achieve their potential as they progress their career journey.

Speaker 3: Our message to workers is clear. Manpower values you, we are committed to your development, and we are by your side to build your skills and often great career opportunities.

Our message to workers is clear.

Manpower about is you we are committed to your development.

And we are by your side to build your skills and offer great career opportunities.

Speaker 3: This campaign is just one example of our role in preparing people for future work and one that is also more green and more digital.

This campaign is just one example of our role in preparing people for future work and one that is also more green and more digital.

Speaker 3: Global Green Energy Transition creates demand for millions of skilled workers to fill new roles in renewable energy, electrification, battery technology, hydrogen and more.

Global Green energy transition creates demand for millions of skilled workers fulfill new roles in renewable energy electrification battery technology hydrogen and more.

Speaker 3: We are committed to preparing people for these new opportunities and recently announced our partnership with NO Energy and the European Battery Alliance to upskill as many as 800,000 workers for jobs in the Green Battery Battery Chain by 2020.

We are committed to preparing people for these new opportunities and recently announced our partnership with <unk> and the European Battery Alliance to Upskill as many as 800000 workers for jobs in the Green battery value chain by 2025.

Speaker 3: A reputation, a strategic partner to guide companies to transformation is recognized by industry analysts too.

Our reputation and our strategic partners to guide companies through transformation is recognized by industry analysts to.

Speaker 3: Experience has been named the leader and star performer in Everest Group's peak matrix assessment of US condition staffing services scoring highly for its AI, enable capabilities in IT staffing, project solutions and managed service.

<unk> has been named a leader and star performer in Everest group's peak matrix assessment of use contingent staffing services, scoring highly for its AI enabled capabilities in it staffing project solutions and managed services.

Speaker 3: And our map all brand has been recognized in the UK as a leadering contingent talent and strategic solution.

And our manpower brand has been recognized in the UK as a leader in contingent talent in strategic solutions, scoring highly for its strong emphasis on the postpaid experience and investment in Upskilling and Reskilling services, including our might pass program associated academies and candidate facing mobile app.

Speaker 3: scoring highly for its strong emphasis on the sportive experience and investment in upskilling and re-skilling service.

Speaker 3: including our MyPath program, Social Academies, and Candidate Facing Mobile <expletive> .

Speaker 3: Employers now understand that there's no path to growth without people and the ability to hire, train and develop human capital is critical to success on every time for rights.

Employers now understand that there's no path to grow with our people and the ability to hire train and develop human capital is critical to the success on every time horizon.

Speaker 3: I'd like to close by thanking our teams around the world for their engagement and contributions, which is how we're able to consistently deliver to our clients, our people, our partners, and our community.

Like to close by thanking our teams around the world for their engagement and contributions which is how we're able to consistently deliver to our clients our people our partners and our communities I'd now like to open the line for Q&A operator.

Speaker 3: I'd now like to open the line for Q&A. Operator.

Speaker 1: Thank you. If you like to ask a question, please press star 11.

Thank you if you'd like to ask a question. Please press star one one.

Speaker 1: If your question has been answered and you like to move yourself into Q, please first start one one again. Our first question comes from Mark Marcon with Beard. Your line is open.

If your question has been answered and you'd like to remove yourself from the queue. Please press star one again.

Our first question comes from Mark Marcon with Baird. Your line is open.

Speaker 4: Good morning, you know, the St. Jack appreciate the opportunity to ask some questions.

Good morning.

Jack I appreciate the.

Opportunity to ask questions.

Speaker 4: A couple of really quick number questions and one philosophical question. With regards to the exit rate in the US.

Sure.

A couple of really quick number questions and then one philosophical question.

With regards to the exit rates in the U S, France, and Italy can you give us an update in terms of where the exit rates were.

Speaker 4: France and Italy. Can you give us an update in terms of where the exit rates were for each of those three major markets as we exit at the quarter?

For each of those three major markets as we exited the quarter.

Speaker 2: Sure Mark, I'd be happy to start with that. So as we look at the US.

Sure Mark I'd be happy to start with that so as we look at the U S.

Speaker 2: and we exited the quarter. I'd say it was slightly better than the full quarter rate on an overall basis.

And we exited the quarter I'd say it was slightly better than the full quarter right on an overall basis.

Speaker 2: on a day's adjusted basis. So, you know, when you look at the total for the quarter overall for the US at the mineness.

On a days adjusted basis. So when you look at the total for the quarter overall for the U S at the mindedness.

Speaker 2: 14 days adjusted. I'd say slightly better in September and as we guided to the fourth quarter, we did expect

14 days adjusted I'd say slightly better in September and as we guided to the fourth quarter, we did expect.

Speaker 2: So, I think that's stable to slightly better. And that's kind of what we're seeing into the fourth quarter. I think the other thing to remember is there was a significant drop off from the third quarter to the fourth quarter in the year ago period. So that's part of the consideration. If I move to France, I would say. So that is what I think. We ended.

Stable to slightly better than that that's kind of what we're seeing into the fourth quarter I think the other thing to remember is there was a significant drop off from the third quarter to the fourth quarter and the year ago period.

So that's part of the consideration if I move to France, I would say.

We ended the quarter.

Speaker 2: at about minus 3% in the month on a day's adjusted basis in the month of September .

At about minus 3% in the months on a days adjusted basis in the month of September and you can see that comparing to the minus 2% for the quarter overall.

Speaker 2: And you can see that comparing to the minus 2% for the quarter overall.

Speaker 2: I think the prism data certainly came out during for the industry data. And I'd say that showed that August was a bit steeper in terms of the decrease. And that improved slightly into September .

Think the prism data certainly came out during.

For the industry data and I'd say that showed that August was a bit steeper in terms of the decrease in net that proved slightly into September, but I guess more relevant to our guidance for Q4, we did indicate that we did see some additional <unk>.

Speaker 2: But I guess we're relevant to our guidance for Q4. We did indicate that we did see some additional softening into octaves.

Softening into October and that's that's why our guide at about minus 5% at the midpoint is showing some additional.

Speaker 2: And that's why our guide at about minus 5% at the midpoint is showing some additional decreases into the fourth quarter for France.

Decrease into the fourth quarter for France.

Speaker 2: And I'd say Italy came in at the end of the quarter, pretty similar to where they were trending. The quarter overall on a day's adjusted basis was about minus two. And I'd say they ended the quarter at about that same minus two rate. And I'd say they ended the quarter at about that same minus two rate.

And I'd say, Italy came in at the end of the quarter pretty similar to where they were trending.

The quarter overall on a days adjusted basis was about minus two.

And I'd say they ended the quarter at about that same minus two rates.

Speaker 2: And as we look at the guide for the fourth quarter, for Italy, we see a similar level of days adjusted revenue trend into the fourth quarter. So that's a little color on the three largest businesses.

And as we look at the guide for the fourth quarter for Italy, We see a similar a similar level of.

Days adjusted revenue trend into into the fourth quarter. So that's a little color on the on the large on the three largest businesses mark.

Speaker 4: Great, thanks Jack. And then Jack, you always wonder if I'm gonna ask this question. So I'll ask it this time. Perm is a percentage of GP, how's that sitting right now?

Great. Thanks, Jack and then Jack you always.

I Wonder if I'm going to ask this question. So I'll ask it this time perm as a percentage of <unk>.

<unk> how is that.

Thats sitting right now.

Speaker 2: Yeah, so we did talk about the fact that we expected Perm to continue to come off into the third quarter. That was the big development during the second quarter where we saw Perm step down quite a bit.

Okay.

Yes so.

We did talk about the fact that we expected perm to continue to come off into the third quarter that was the big development during the second quarter, where we serve we saw perm stepped down quite a bit and as we said it came in as we expected pretty much spot on with our.

Speaker 2: And as we said, it came in as we expected, pretty much spot on with our expectations that it would step down further. That takes perm to about 16.5% of total GP. And not too far away of where we were, you'll remember Mark Pre-Pandemic, we were in that 16.2% range. So perm as a mix of GP is, has normalized quite a bit.

With our expectations that it would step down further that takes <unk> to about 16, 5% of total GP and not too far away of where we were Youll remember mark pre pandemic. We were in that 16, 2% range. So perm as a mix of GP is has.

Normalized quite a bit.

Speaker 4: Great. And then the philosophical question.

Great and then.

The philosophical question.

Wondering.

Speaker 4: You know, in this Jack, you know, how, obviously it varies by country and you're doing restructuring across the organization, but I'm wondering at present levels, how much excess capacity

Jack.

And obviously it varies by country and Youre doing restructuring.

Ross the organization, but I'm wondering.

President levels, how much excess capacity.

Speaker 4: do you have at this point? And then how do you think about like,

Do you have at this point.

And then how do you think about like.

Speaker 4: You know, the trends that we're seeing in the US relative to say, you know, the Atlanta Fed's GDP now, you know, projecting like a 5% GDP increase here in the third quarter. It's just kind of interesting just in terms of thinking about overall a lot of discussion around the soft landing and yet staffing has clearly been, you know, in a recessionary environment. I'm just wondering how you think.

The trends that we're seeing in the U S relative to say.

The Atlanta Fed's.

GDP now projecting like a 5% GDP increase here in the.

Third quarter.

It's kind of interesting just in terms of thinking about.

Overall, a lot of discussion around the soft landing and yet staffing has clearly been.

In a recessionary environment I'm, just wondering how you think about that.

Speaker 5: Well Mark, good morning and thank you. Yeah, I'm really happy. I'm not an economist that has to sort of predict and explain how we could have a 5% GDP growth in the third quarter.

Well, Mike Good morning, and thank you, yes, I'm really happy I'm not an economist that has to sort of predict and explain how we could have a 5% GDP growth in the third quarter.

Speaker 5: But let me tell you about our business and what we're seeing and how we're thinking about this. As you correctly point out, not for standing GDP growth numbers, both in Europe as well as in the US, which are still positive, our industry is operating.

But let me tell you about our business and what we're seeing and how we're thinking about this as you correctly point out notwithstanding GDP growth numbers, both in Europe as well as in the U S, which are still positive our industry is operating under recessionary like <unk>.

Speaker 5: under recessionary-like conditions. So we're negative here in the US and Canada across most of the European countries as well.

Conditions silver negative here in the U S and Canada across most of the European countries as well so the way we think about managing the business. At this time is as we mentioned in our prepared remarks really using a fine point pen as opposed to a broad brush.

Speaker 5: So the way we think about managing the business at this time is as we mentioned in our prepared remarks, really using a fine point pen as opposed to a broad brush.

Speaker 5: We are maintaining our sales strength, driving for market share growth, seeing our pipelines increase in all of our brands, but seeing time to conclusion and value realization extent.

We are maintaining our sales strength driving for market share growth seeing our pipelines increase in all of our brands, but seeing tying to conclusion and value realization extend we are managing to the slowing demand through our delivery capabilities and that's what you see us adjust.

Speaker 5: We are managing to the slowing demand through our delivery capabilities and that's what you see as adjusting.

Speaker 5: in terms of how we're bringing cost down overall. Clearly, we're postponing projects that we don't think have a shorter return. So this is a pausing activity, not an elimination activity, and doubling down on transformation projects like the one we spoke about in our prepared remarks around.

Thing in.

In terms of how we are bringing.

Cost down overall, clearly we're postponing projects that we don't think have a short term returns. So this is a pausing activity not an elimination activity and doubling down on transformation projects like the one we spoke about in our prepared remarks around centralizing finance and <unk>.

Speaker 5: centralizing finance and technology to drive great productivity and efficiency for the organization as a whole, as well as recruiters with our global technology.

Knowledge to drive greater productivity and efficiency for the organization as a whole as well as recruiters with our global.

Technology platforms. So that's how we're managing through it and at this stage clearly there is still a slack and we plan it as such so that we have time to bring in the people when we start to see the business stabilize and we start to see the upturn coming on.

Speaker 5: So that's how we're managing through it. And at this stage, clearly there is still slack and we plan it as such so that we have time to bring in the people when we start to see the business stabilizing and we start to see the upturn coming on the other side.

Right.

Speaker 5: So that we have time to bring in new recruiters and meet the increased demand at that point in time. Three.

So that if you have time to bring in new recruiters and meet the increased demand at that point in time.

Great. Thank you very much.

Thanks, Thank you.

Speaker 1: Our next question comes from Jeff Silver with BMO Capital Markets. Your line is open.

Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Speaker 6: Thanks so much. You mentioned the cost actions. I was wondering if we just get a little bit more polar where they work. And what do you need to see before saying that's an up cost actions or we need to do more?

Thanks, so much.

You mentioned the cost actions I was wondering can we just get a little bit more color, where they were and what do you need to see before saying that's enough cost actions or we need to do more.

Speaker 2: Thanks, Jeff. Yeah, I'm happy to talk to that question. So

Thanks, Jeff I'm happy to talk to that question. So.

Speaker 2: You know, as we said, we did take significant cross-actions in the third quarter and we teed that up when we released the second quarter results that we would be leaning more heavily into that.

As we said.

We did take significant cost actions in the third quarter.

We teed that up when we released our second quarter results that we would be leaning more heavily into that.

Speaker 2: As in it is a bit of a continuation of the previous discussion we were just having. So as you look at where our businesses are seeing the most pressure, you should expect that that's where we've made some of the biggest adjustments, right? So...

This is a bit of a continuation of the previous discussion we were just having so as you look at where our businesses are seeing the most pressure.

You should expect that that's where we've made some of the biggest adjustments right so and to your own at this point, we're doing that in a <unk>.

Speaker 2: And to Jonas' point, we're doing that in a very careful way. We're preserving sales. We want to be well prepared on the sales activity and the opportunity to take market share. When we start to see improving trends, we're being extremely careful.

Very careful way, we're preserving sales we want to be well prepared.

On the sales activity and the opportunity to take market share when we start to see improving trends, we are being extremely careful.

Speaker 2: on the sales side, but we are otherwise adjusting producers based on the existing demand. So where would that be? The US is one of the biggest areas where we've made some pretty significant adjustments. We talked about

On the sales side, but we are we are otherwise adjusting producers based on the existing demand, so where would that be the U S.

Yes.

One of the biggest areas, where we've made some pretty significant adjustments we talked about.

Speaker 2: being down year over year, 7% in our head count. The US is definitely well above that in terms of decreases. I would say another key market we talked about Germany and some of the right sizing we're doing there. We'll have more to say about Croservia in the fourth quarter, but as a result of that, we're making changes to our head office structure in Germany to adapt to the business going forward, which will be largely a manpower business.

Being down year over year, 7% and our head count the U S.

Is definitely well above that in terms of decreases.

Say another key market, we talked about Germany, and some of the right sizing. We're doing there we will have more to say about pro Serbia in the fourth quarter, but as a result of that we're making changes to our head office structure in Germany to adapt to the business going forward, which will be largely a manpower business.

Speaker 2: And we made some big adjustments in the UK as well. And you can see the more significant decreases in that market from the enterprise client.

And we made some big adjustments in the UK as well and you can see the more significant decreases in that market from the enterprise clients.

Speaker 2: You know, other markets where we've made some big adjustments, the Nordics, we do saw in our trends, the Nordics came down quite a bit from Q2 to Q3.

Other markets, where we've made some big adjustments. The Nordics. We you saw in our trends the nordics came down quite a bit from Q2 to Q3.

Speaker 2: So we've made some pretty significant reductions in Norway and Sweden as part of that. Those are the bigger ones. We continue to make adjustments in France as well.

So we've made some pretty significant reductions in Norway, and Sweden as part of that I would say those are those are the bigger ones.

We continue to make adjustments in France as well.

Speaker 2: But I'd say in terms of the numbers that we're driving the bigger decreases Those would be the markets that I would highlight

But I'd say in terms of the numbers that we're driving the bigger decreases.

Those would be the markets that I would highlight.

Speaker 6: Okay, that's really helpful. Maybe we can shift gears to the pricing environment if we can talk about how both pay rates and doer rates are going and are you seeing any pushback? I've got it from clients or maybe more competitive pressure.

Okay. That's really helpful. Maybe we can shift gears to the pricing environment. If we could talk about how both pay rates and bill rates are going and are you seeing any pushback from clients or maybe more competitive pressure.

Speaker 5: Well, just the pricing environment remains competitive at rational and I would say based on the strength of the labor market.

Well, just the pricing environment remains competitive, but rational and I would say based on the strength of the labor markets broadly the pricing environment remains solid and you can see that in our staffing margins. The decline that we saw a 10 basis points was really all driven.

Speaker 5: broadly, the pricing environment remains solid. And you can see that in our staffing margins, you know, the decline that we saw of 10 basis points was really all driven by mix between various countries, not by pricing concessions. We remain very disciplined in our pricing. And, you know, the constraints on the labor markets means that the demand we have for the talent.

By mix between various countries not by.

Pricing concessions, we remained very disciplined in our pricing and.

The constraints on the labor markets means that the demand we have for the talent.

Speaker 5: You know, it's seen as extremely valuable by our client companies and we make sure that we are positioned in the right way with the skill sets that we provide so that we can maintain that pricing discipline. So overall, it is rational, it is of course competitive but it is still a solid and positive pricing environment for us.

Eaton is extremely valuable by our client companies and we make sure that we are positioned in the right way.

The skill sets that we provide.

So that we can maintain that that pricing discipline. So overall it is rational it is of course competitive.

But it is still a solid and positive pricing environment for us.

Okay. Thanks, so much for the color.

Thanks, Jeff.

Speaker 1: Thank you. Our next question comes from Josh Chan with UBS. Your line is open. Thank you more on the Jonas and Jack.

Thank you. Our next question comes from Josh Chan with UBS. Your line is open.

Hey, good morning units and Jack Thanks for taking my questions.

Speaker 5: I was wondering if you could comment on the US trend. I guess your macro oriented commentary seems, I guess, relatively subdued, but I guess the US business saw a relatively improving trend in Q3 and you're forecasting another improvement into Q4. So I'm just wondering how you're thinking about the trajectory of that business and how you feel about the US business from a 10 perspective.

I was wondering if you could comment on the U S trend I guess your macro oriented commentary seems I guess relatively subdued, but I guess the U S business saw a relatively improving trend in Q3, and you're forecasting another improvement into Q4. So I'm just wondering how youre thinking about the trajectory of that business.

And how you feel about the U S business so.

From a trend perspective.

Speaker 5: Yeah, thanks. It's a great question. And I'll start maybe and then Jack can give a little bit more specificity. So stepping back from what we're seeing into the fourth quarter, really, the change that we are observing is softening in Europe primarily at the Mampal brand.

Yes. Thanks.

It's a great question and I'll start maybe and then Jack can give a little bit more specificity. So stepping back from what we're seeing into the fourth quarter really the change that we are observing is softening in Europe, primarily at the manpower brand.

Primarily in France.

Speaker 5: and some other countries, you're too less a degree Italy. So that's the change. Just you look at the out.

And some other countries to a lesser degree Italy. So that's the change as you look at the outlook. So from a geo perspective, as you've noted we see sequential stability.

Speaker 5: So from a geoprospective, as you've noted, we see sequential stability in the third court for headering into the fourth quarter for the US.

In the third quarter, our hedging into the fourth quarter for the U S and largely that is true for all three brands and if you step out and you look at this from a global perspective talent solutions that an experienced globally are sequentially stable.

Speaker 5: and largely that is true for all three brands.

Speaker 5: And if you step out and you look at this from a global perspective, talent solutions and experience globally are sequentially stable, going into the fourth quarter, and the weakness comes in manpower. And as I just mentioned, that weakness primarily relates to weakness in Europe .

Going into the fourth quarter and the weakness comes in manpower and as I, just mentioned that weakness primarily relates to weakness in Europe, but maybe Jack you could give a little bit more specificity on some of the some of the U S business trends sure I'd be happy to Josh I would say on the U S and the manpower side.

Speaker 2: But maybe Jack, you could give a little bit more specificity on some of the US business trends. Sure, be happy too. So Josh, I would say on the US and the manpower side, we did see slight improvement. So talking days adjusted, I think, let's remember that days adjusted decreased for manpower in Q2 was minus 19%. So quite a significant drop at that point. And that improved to minus 16%.

We did see slight improvement.

So talking days adjusted I think let's remember the days adjusted decrease for manpower in Q2 was minus 19% so quite a significant drop at that point and that improved to minus 16% into Q3.

Speaker 2: in the Q3 and we expect that to see some slight improvement in that trend. So that being said, still a pretty difficult operating environment, right? And then on an on an experience, you know, very, very similar. So in Q2 days adjusted, we talked about being down minus 17%.

And we expect that to see some slight improvement in that trend so that being said still pretty difficult operating environment right and then on an experience.

Very very similar so in Q2 days, adjusted we talked about being down minus 17% that improved slightly to the minus 15% days adjusted into Q3, and our outlook. There is slight improvement into Q4 and similar to what Jan has said, but what that really means.

Speaker 2: that improves slightly to the minus 15% days adjusted into Q3 and our outlook there is, you know, slight improvement in the Q4. And similar to what Jonas said, what that really means is when you consider, you know, the year ago period, we're seeing, you know,

<unk> is when you consider the year ago period, we're seeing.

Speaker 2: kind of stable levels of activity going into the fourth quarter. So I would say still cautious. We are, you know, we are a bit cautious that the traditional ramp that you typically see in October and November may not materialize this year, just based on, you know, continuation of the sluggish trends we've seen in the enterprise sector earlier in the year.

Stable levels of activity going into the fourth quarter, So I would say still cautious.

We are a bit cautious that the traditional ramp that you typically see in October and November may not materialize. This year, just based on a continuation of the sluggish trends we've seen in the enterprise sector earlier in the year, but with that being said as we anniversary. The prior period I think the rate will show some.

Speaker 2: But with that being said, as we anniversary the prior period, I think the rate will show some flight improvement on a year over your basis. And as you said, I think on the Town Solutions side, which...

Slight improvement on a year over year basis, and as Yona said I think on the talent solutions side, which is the biggest talent solutions has the biggest impact globally in the U S.

Speaker 2: is the biggest town solutions has the biggest impact globally in the US.

Speaker 2: We we fast the ability in our PMSP and right management in the US.

We saw stability in our <unk> MSP and right management in the U S. From Q2 to Q3, I talked about a bit of the normalization of Perm, we do expect perm to continue to come off a bit but it won't come off at the same degree that it came off more significantly in the previous quarters. So we see it kind of stability.

Speaker 2: from Q2 to Q3. I talked about a bit of the normalization of PURM. We do expect PURM to continue to come off a bit, but it won't come off at the same degree that it came off more significantly in the previous quarters. So we see the kind of stability and that at those lower levels into the fourth.

80 in that at those lower levels into the fourth quarter.

Speaker 7: That's really good color, thank you for that. And kind of picking backing on your last comment, Jack, on the perm coming off, I guess, obviously that's impacting your gross margin now, but it does sound like that there could be some sequential stability, so I guess how are you thinking about perm going forward? And then specifically, does that 70 basis points of gross margin headwind become kind of a peak impact or maximum impact if you will going forward? Jim??????????????

Okay. That's really good color. Thank you for that and kind of picking piggybacking on your last comment Jack on the Perm coming off I guess.

Obviously, that's impacting our gross margin now, but it does sound like that there.

There could be some sequential stability. So I guess, how are you thinking about <unk> going forward and then specifically does that 70 basis points of gross margin headwind become kind of a peak impact our maximum impact if you will going forward how are you thinking about that.

Speaker 2: Yeah, you know, I'd say, you know, it's a fair question. It really is hard to say whether that 70 is going to be kind of the peak. I will tell you sequentially Q3 to Q4. We're looking at, you know, GP margin going from 17.6 to 17.4 at the midpoint. So fairly close.

Yes, I'd say, it's a fair question. It really is hard to say whether that 70 is going to be kind of the peak I will tell you sequentially Q3 to Q4, we're looking at GP margin going from 17, 6% to $17 four at the mid.

Point, so fairly close.

Speaker 2: You know, we are starting to anniversary, you know, some of the drop in perm that we saw in the second half of last year. So I'd say, you know, it will be, you should expect that it will likely be a lower impact on the year over year change as we start to anniversary those lower levels.

We are starting to anniversary.

Some of the some of the drop in Perm that we saw in the second half of last year, So I'd say.

It will be you should expect that it will likely be a lower impact on the year over year change as we start to anniversary those lower levels.

Speaker 2: And we'll just have to see how that continues. But I would say it does feel like we've normalized quite a bit recently. And we're anticipating that into the fourth quarter guide with GP margins still holding up fairly good sequentially. Great. Thanks.

And we will just have to see how that continues but I would say it does feel like we've we've normalized quite a bit recently and we are anticipating.

That into the fourth quarter guide with GP margin is still holding up fairly good.

Sequentially.

Great. Thank you. Thank you both for your time.

Okay.

Speaker 6: Thank you. And our next question comes from George Tongue with Goldman Sachs. Your line is open. Hi, thanks. Good morning. You noted demand from enterprise technology clients continue to be subdued in the quarter. Can you elaborate on where you're seeing the weakness and tech and how tech-stabbing trends performed over the course of the quarter and in October to date?

Thanks.

Our next question comes from George Tong with Goldman Sachs. Your line is open alright.

Alright, Thanks, good morning Hugh.

Demand from enterprise technology clients continued to be subdued in the quarter can you elaborate on where you're seeing the weakness in tech and how tech staffing trends performed over the course of the quarter and in October to date.

Speaker 5: Overall, George, I'd say that the demand continued to be quite weak, both in the US and in Europe . And I think it's in terms of industry verticals that are big, especially for experience globally and also here in the US. It was the tech and the communications industries that they were, the telcos, they're the ones that have seen the biggest drop.

Overall, George I would say that the demand.

To be quite weak both in the U S and in Europe and.

I think his term in terms of industry verticals that are big especially for experience.

Globally and also here in the U S.

It was the tech and the communications industries that they were the telcos. They are the ones that have seen the biggest drops.

Speaker 5: I would say as you heard from our prior remarks here, we think the things have stabilized sequentially but at a low level and they seem to be holding steady at least for now. So that's what we're seeing and we have strength in other verticals but they are the ones that are driving the significant decline.

I would say as you heard from our prior remarks here, we think that things have stabilized sequentially, but at a low level.

They seem to be holding steady at least for now and so that's what we're seeing and we have the strength.

In other verticals, but they are the ones that are driving the significant declines.

Speaker 5: for all of our brands, but in particular for experienced at a global and at a US level.

For all of our brands, but in particular for <unk> at the global and U S level.

Speaker 2: George, I guess I would just add, I know you like to know about a little color on some of the other verticals and some of the others on the call as well. So maybe this is a good time to maybe talk.

And George I guess I would just add I know I know you like to know about a little color on some of the other verticals and some of the others on the call as well. So maybe this is a good time to maybe talk a little bit about that so to your illnesses point enterprise Tech has been some of the more significant.

Speaker 2: a little bit about that. So, Tionis' point, Enterprise Tech, has been some of the more significant the sector probably with the most significant pressure during the year on overall basis.

The sector, probably with the most significant pressure during the year on an overall basis I would say other areas on the weaker side.

Speaker 2: I would say other areas on the weaker side, you know, we've talked about logistics being soft, you know, most of the year that continues.

We've talked about logistics being soft most of the year that continues.

Speaker 2: I'd say on the manufacturing side, outside of auto and food manufacturing continues to be very sluggish. You can see that. We talked about that in terms of manufacturing PMIs in our prepared remarks.

I'd say on.

On the manufacturing side outside of auto and food manufacturing continues to be very sluggish you can see that we talked about that in terms of manufacturing PMI in our prepared remarks.

Speaker 2: And then I'd say construction, which is really more relevant to our European business than Norway and France has been weaker as well.

And then I'd say construction, which is really more relevant to our European business in Norway, and France has been has been weaker as well.

Speaker 2: And I would say more recently, we've seen banking. So banking was strong, was relatively flatish, and I'm puking more of the US market now in the first half of the year. And we're starting to see banks pull back a bit more now as we end the third quarter. So we see banks kind of reacting to the current environment.

And I would say more recently, we've seen banking. So banking was strong was relatively flattish and I'm talking more of the U S market now in the first half of the year and we're starting to see banks pull back a bit more now.

As we end the third quarter. So we see banks kind of reacting to the current environment currently I would say on the on the flip side.

Speaker 2: Currently, I'd say on the flip side, auto continues to be strong. You certainly see that in our Germany numbers. That is an area of strength that continues in France and Sweden as well. I mentioned food and I would say the public sector has generally been more resilient on an overall basis. Although that is softened a little bit in the UK in the third quarter. So a little more color in terms of what we're seeing in terms of the industry verticals on an overall.

<unk> continues to be strong, we certainly see that in our Germany numbers that is an area of strength that continues in France, and Sweden, as well I mentioned food and I would say the public sector has generally been more resilient on an overall basis, although that has softened a little bit in the U K in the third quarter, So a little more.

Color in terms of what we're seeing in terms of the industry verticals on an overall basis.

Speaker 8: That's very helpful. Thank you. And then to follow up, every cycle, as you know, has its own unique characteristics in terms of the way down and the way up. How do you expect the current macro slow down and subsequent recovery to compare with prior cycles in terms of depth and also in terms of duration?

That's very helpful. Thank you.

And then to follow up every cycle has its own unique characteristics in terms of the way down and the way up.

Do you expect the current macro slowdown and subsequent recovery to compare with prior cycles in terms of depth and also in terms of duration.

Speaker 5: I think if I knew the depth then it'd be easy, but we don't. So we manage through the uncertainty like everybody else. But I would say largely, the way this economic slowdown is playing out in our industry is roughly what we have seen in prior economic cycles.

Well, George I think if I knew the depths than than it would be easy, but we don't so we manage through the uncertainty like everybody else.

But I would say largely this the way this economic slowdown this playing out in our industry is roughly what we have seen in prior economic cycles with the difference being some delays and some sequencing we talked about the step down of Perm.

Speaker 5: With the difference being some delays and some sequencing, you know, we talked about, you know, the step down of perm, you know, in the second quarter coming into the third quarter where that is normally something we would see a little bit earlier, we would see, you know, maybe commercial staffing started to climb a little bit earlier and that, you know, IT staffing and professional staffing would hold on a little bit longer due to the length of the projects and the higher skill sets. And that's been a little bit reversed.

In the second quarter coming into the third quarter, where that is normally something we would see a little bit earlier, we would see maybe.

<unk> staffing start to decline a little bit earlier than that.

Staffing and professional staffing would hold on a little bit longer due to the length of the projects on the higher skill set so that's been a little bit reversed, but a lot of these.

Speaker 5: But a lot of these differences and timings we think can very largely explain.

Differences in timing. So we think can be largely explained.

Speaker 5: by pandemic and post-pandemic anomalies, frankly, that are as we go through this economic cycle, you know, seem to be coming back towards trends.

By pandemic and post pandemic.

Nominally frankly that are as we go through this economic cycle.

See seem to be coming back towards trend. So overall, we would expect this to play out in a recovery in the same way that we've seen in the past companies will get some confidence into the future, but not enough to really start their permanent hiring and the cigna.

Speaker 5: So overall, we would expect this to play out in a recovery in the same way that we've seen in the past, companies will get some confidence into the future, but not enough to really start their permanent hiring in a significant way. That means we'll see commercial staffing start to pick up, IT projects and others for experienced pick up.

Difficult way.

That means we will see cannot social staffing start to pick up a project and others for experience pick up.

Speaker 5: RPO and PURM start to pick up because a lot of the talent acquisition activities have been have been changed in the clients companies and then you know we would see it start like that. The one thing George that I think we will have to get used to which in our terms is a positive fact in terms of demand.

IPO in Perm start to pick up because a lot of the talent acquisition activities have been have been.

I have been changed in the client companies and then we.

Would see it start like that the one thing George is that I think we will have to get used to which in our terms is a positive effect in terms of demand.

Speaker 5: is more structurally constrained labor markets overall in many, many skill sets, and not just the highest skill sets, but also broadly due to the changing demographics and aging population, you know, we think access to human capital is going to become more difficult, which means customers and companies will rely more on us and all of our brands.

Is more structurally constrained labor markets overall.

In many menu skill sets and not just the highest skill sets, but also broadly due to the changing demographics the aging population.

We think access to human capital is going to become.

More difficult, which means customer version companies will rely more on us and all of our brands to attract and retain the talent both on a contingent as well as on the permanent on apartment in basis, and we look at our staffing margins that we have today across the board.

Speaker 5: to attract and retain the talent both on a contingent as well as on a permanent, on a permanent basis. And we look at our staffing margins that we have today across the board and how well they're holding up. And that is different from what we've seen in other cycles.

And how well, they're holding up and that is.

Different from what we've seen in other cycles, and we would hope that based on the structural trends that we're seeing demographically and the demand for new skill set driven by technological changes at all skill levels, frankly, but that will give us further support for some good.

Speaker 5: And we would hope that based on the structural trends that we're seeing demographically and the demand for new skills that's driven by technological changes at all skill levels, frankly, but that will give us further support for some good margin evolution, staffing margin and total margin as a whole.

Good margin evolution staffing margin and total margin as a whole.

Very helpful. Thank you.

Speaker 1: Thanks, George. Thanks. Thank you. Our next question comes from Cartagmata with North Coast Research. Your line is open.

Thanks, Joe.

Thank you. Our next question comes from Kartik Mehta with Northcoast Research. Your line is open.

Kartik Mehta your line is open.

Youre on mute Kartik.

Speaker 2: Maybe we'll come back to the car tech. He might be having difficulty.

Maybe it will come back after kartik he might be having difficulty.

Speaker 1: Our next question comes from Manav Patnik with Barclays. Your line is open.

Our next question comes from Manav Patnaik with Barclays. Your line is open.

Speaker 9: Hi Jack, hi Jonas, this is Princeytomas on Fermanas. Last quarter you mentioned some mixed related changes around rebalancing your client mix, specifically in Indian Australia, and that you were seeing good profitability levels in those markets. Can you give us an update and expand on your progress there and how this impacts your exposures and revenue margin impacts from these mixed changes?

Hi, Jack Hi, Jonas this is Thomas on for Manav.

Last quarter, you mentioned some mix related changes around rebalancing your client mix, specifically in India, and Australia and that you were seeing good profitability levels in those markets can you give us an update and expand on your progress there.

And how this impacts your exposure is on the revenue margin impact from these mix changes.

Speaker 2: Sure, Prensy, I think the main takeaway is there wasn't really a lot of dramatic changes in Q3. I think you're right. That's been an ongoing adjustment we've been making in certain key markets. India certainly is a very important market for us.

Sure.

Thank the main takeaway is there wasn't really a lot of dramatic changes in Q3, I think you're right. That's been an ongoing adjustment we've been making in certain key markets, India certainly has a very important market for us.

Speaker 2: But it's a tough margin market. So as a result of that, we want to make sure we're taking on the right business that's a creative to the organizational overall. And we're making really good progress in that regard. So the business has been doing a really nice job repositioning the business this year and we feel good about that. And I'd say that continued on in Q3 as expected.

But it's a tough margin market. So as a result of that we want to make sure. We're taking on the right business that's accretive to the organization overall, and we're making really good progress in that regard. So the business had been doing a really nice job repositioning the business. This year and we feel good about that and I'd say that continued on in Q3 as expect.

Speaker 2: I'd say, you know, the other country that we've talked a lot about in the past has been the UK and another tough margin market on an overall basis. We have a lot of tremendous experience operating in that market and we've done a really nice job repositioning the margin profile of that business as well. So despite the very difficult conditions and you saw the

<unk>.

I'd say the.

The other country that we've talked a lot about in the past has been the U K and another tough.

<unk> market on an overall basis, we have a lot of tremendous experience operating in that market and we've done a really nice job repositioning the margin profile of that business as well so despite the very difficult conditions and you saw the.

Speaker 2: the trends for the UK. So definitely on the higher side of pressure that we've seen, they're actually operating quite well in that environment and doing a really nice job preserving operating unit profit margin. So...

Trends for the U K, so definitely on the higher side of pressure.

That we've seen they are actually operating quite well in that environment and doing a really nice job preserving operating unit profit margin. So I'd say those are two examples that we probably have talked a little bit more about and I'd say continued on good progress into the third quarter on both of those thanks.

Speaker 2: I'd say those are two examples that we probably have talked a little bit more about and I'd say continued on good progress into the third quarter-on-fault.

Speaker 9: Got it. Thank you. And as I follow up, you mentioned in your prayer remarks that you expect significant reduction of activity in your Israel business. Can you quantify your Israel exposure for us?

Got it thank you and as my follow up you mentioned in your prepared remarks that you expect significant reduction of activity in your Israel business can you quantify your Israel exposure for us.

Speaker 5: Yes, thanks for that question. And as I mentioned in my prepared remarks just this morning, I've spoken to our Israeli colleague.

Yes, Thanks for that question and as I mentioned in my prepared remarks, just this morning, I've spoken to our Israeli colleagues and the Israel business is a business.

Speaker 5: And the Israel business is a business that has been in the market leader and we've been in Israel for over 60 years. We have about more than 10,000 employees and associates in Israel and it's roughly a $400 million operation. And as you can imagine in this wartime in Israel, many of our employees are being called up to serve.

That has been in that is the market leader and we've been in Israel for over 60 years, we have about we have more than 10000 employees and associates in Israel, and it's roughly a $400 million operation and as you can imagine in this more time in Israel. Many of our employees are being <unk>.

Called up to serve.

Speaker 5: Fortunately, we have had families, members missing as also impacted fatally. So it is a tough time for our operation in Israel. We are providing them all the support we can, of course, as Man Park Group.

Fortunately we have had.

Family members missing as also impacted slightly so it is a tough time for our operation in Israel we.

We are providing them all the support we can of course as manpower group and I am in all at their resilience and their ability to manage a very uncertain and volatile and difficult environment, both professionally and personally and still support our thousands and thousands of associates.

Speaker 5: And I am in awe at their resilience and their ability to manage a very uncertain and volatile and difficult environment.

Speaker 5: both professionally and personally and still support our thousands and thousands of associates as well as client companies.

As well as client companies in Israel, So I am I am very impressed and I'm sad by the terrorist attacks and all the resulting.

Speaker 5: in Israel. So I am very impressed and I'm sad by the terrorist attacks and all the resulting difficulties in the region, but it is going to be tough to estimate the impact medium term for Israel, but from what we can tell, at least in the short term, this is having a significant operational impact to us in Israel.

Difficulties in the region.

But it is going to be tough to estimate the impact medium term for Israel, but from what we can tell at least in the short term. This is having a significant operational impact to us in Israel.

I appreciate the color. Thank you.

Speaker 6: Thank you. Our next question comes from Toby Summer with two securities. Your line is open. Good morning. This is Jasper Bedbon for Toby. Just one of the follow-up on the restructuring actions and what that might mean for your branch network. Like I know, total branches have come down quite a bit over the past decade, but curious how you see the future of the branch footprint with the recent portfolio changes.

Thank you. Our next question comes from Tobey Sommer with two of Securities. Your line is open.

Hey, good morning. This is Jasper bibb on for Tobey.

Just wanted to follow up on the restructuring actions and what that might mean for your branch network.

Total branches have come down quite a bit over the past decade, but curious how you see the future of the branch footprint, but the recent portfolio changes.

Speaker 5: You know, we've been very cautious. We've, as you pointed out, we've really leveraged our digital platforms to bring down our physical branch footprint.

We've been very cautious.

As you pointed out we've really leveraged our digital platforms to bring down our physical branch footprint very significantly over the last decade, which of course helps us because it becomes less fixed costs more variable.

Speaker 5: Very significantly over the last decade, which of course helps us because it becomes less fixed cost more variable.

Speaker 5: But at this point, I think at least for now, we are going to remain relatively stable in our branch network. We had some slight adjustment.

But at this point I think at least for now what we are going to remain relatively stable in our branch network, we had some slight adjustment.

Speaker 5: sequentially here, but nothing strategic and not really in reaction to the slowdowns that we're seeing. So we largely intend to keep our physical footprint exactly where it is today in all of our brands and manage the demand decline.

Sequentially here, but nothing nothing strategic and not really in reaction to the slowdowns that we're seeing so we largely intend to keep our physical footprint exactly where it is today and all of our in all of our brands and.

Manage the demand decline through other ways of centralizing delivery in low cost areas and things like that so that we have more flexibility and thats really the evolution that we've had.

Speaker 5: through other ways, centralizing delivery and low cost areas and things like that so that we have more flexibility and that's really the evolution that we've had.

Speaker 5: between the last mile delivery capability that we have in our countries, also augmenting that the centralized delivery capabilities in all geos, be that from Latin America, in India.

Between the last mile delivery capability that we had in our countries.

Countries.

<unk> also augmenting that with centralized delivery capabilities in all Geos b that from Latin America.

In India and in the U S and in Europe, and making sure that we have excess delivery capability centrally so that we can flex those first and be able to adjust to the demand.

Speaker 5: And in the US and in Europe , making sure that we have access delivery capability centrally so that we can flex those first and be able to adjust to the demand in a very dynamic way, which of course also helps us, you know, as we ramp up for a coming rebound when that occurs. So that is sort of how we're thinking about our physical footprint, right?

In a very dynamic way, which of course also helps us.

As we ramp up for a coming rebound when that occurs so that is sort of how we're thinking about our physical footprint right now.

Speaker 10: Thanks for that. And then just had a quick one on preliminary expectations for the tax rate in 24. I guess the fourth quarter is going to be a bit higher at 32.5, but you also mentioned some CVA benefit next year. So on a blended basis would that imply about 32% for 24? Would that be too high?

Thanks for that and then just had a quick one on preliminary expectations for the tax rate in 'twenty four.

I guess, the fourth quarter is going to be a bit higher at 32, five but you also mentioned some CVA benefit next year. So on a blended basis would that imply about 32% for 'twenty four or would that be too high.

Speaker 2: Yeah, no, Jasper, I think, you know, it's a, it's a, it's a fair question. You know, it's a little hard to say at this, at this time for the full year of 24, because it's going to be heavily driven by the mix of earnings from the countries. But what I would say is you're absolutely right. The CVE will be an improvement in all things being considered equal. We'll be an improvement in a reduction in the rate somewhere as we said to the tune of about 35 basis points. We got it to the 32 and a half and the fourth.

Yes, no Jasper I think.

It's a it's a fair question.

A little hard to say at this at this time for the full year of 24, because it's going to be heavily driven by the mix of earnings from the countries, but what I would say is youre absolutely right. The CVA will be an improvement in all things being considered equal will be an improvement and a reduction in the rates somewhere as we said to the tune of about 30.

Five basis points, we guided to the 32 and a half in the fourth quarter.

Speaker 2: For now, if you wanted to apply that to that 32 and a half and say it's going to be somewhere in the neighborhood of 32 percent, as of right now, I think that's a reasonable estimate. I'll certainly give an update on that a year and I'll give our updated view on whether that should change for estimate purposes. But I think for now, using the fourth quarter rate reduced somewhat is reasonable. Thanks. Fair enough. If you just take it out.

<unk>.

For now if you wanted to apply that to that 32, and a half and say, it's going to be somewhere in the neighborhood of 32% as of right now I think thats a reasonable estimate I'll certainly give an update on that at year end I'll give our updated view on whether that should change for estimate purposes, but I think for now using the fourth quarter right.

Reduced somewhat.

Is reasonable.

Fair enough thanks for taking the questions guys.

Thank you.

Speaker 1: Thank you. Our next question comes from Stephanie Moore with Jeffries. Your line is open.

Thank you. Our next question comes from Stephanie more with Jefferies. Your line is open.

Hi, good morning, Thank you.

Speaker 11: I wanted to touch on a little bit, you know, just trying to kind of...

I wanted to touch on a little bit I am just trying to kind of parse through everything that was set up in the Q&A in particular in France.

Speaker 11: for everything that was that I'm in the Q&A, in particular. And I think I've partened France. You are calling for a bit of stability in the fourth quarter, particularly in the US called you pay a little bit. Given you've been, I guess, seeing the slowdown for almost a year, I guess, four or two to four, Q, are you hearing when you have your clients that think maybe the worst is behind us?

France, you are calling for a bit of stability in the fourth quarter, particularly in the U S I'll be pay a little bit.

Given you've been I guess seeing the slowdown for a multiyear I guess for Q4 Q are you hearing from any of your clients that maybe the worst is behind us.

Speaker 11: or are they kind of talking about the potential that there could be another step down or could you start to see trends improved from here? I'm just trying to triangulate what now or year over year comp, seasonality, which I guess, it sounds like you're not really seeing three, two, to four, two, and then just underline macro trends. So any help about help you're hearing some clients in terms of when we should start to see any change, maybe four, two, first quarter, or anything like that.

Are they kind of talking about the potential that that can be another step down or could you start to see trends improve from here I'm just trying to triangulate what now our year over year comp seasonality, which I guess it sounds like youre not really seeing <unk> and then just the underlying macro trends. So any help without help you are hearing from clients in terms of kind of when we.

Should start to see any any change maybe <unk> first quarter or anything like that.

Speaker 5: You know, the level of the declines that we've seen, Stephanie and our conversations with clients, you know, really goes to answer it in the way that they don't know.

The level of the declines that we've seen that Stephanie and in our conversations with clients.

Really goes to answer it in the way that they don't know.

Speaker 5: And they don't know how long this will take and they are uncertain and that's why I think, they're maintaining their own workforces, but they're really flexing this fluctuation and slowing demand through our industry. So just along the prepared remarks that we mentioned on the sentiment that we hear when we speak with our clients, they still don't say, look, this is still manageable. Thank you for helping us navigate through this.

And they don't know how long this will take and they are uncertain and that's why I think they're maintaining their own workforces, but they really flexing this fluctuation and slowing demand through our industry. So just on the prepared remarks that we mentioned on the.

The sentiment that we hear when we speak with our clients.

They'll say look this is still manageable. Thank you for helping us navigate through this environment.

Speaker 5: environment. You know, we see some slowing demand, which we're adjusting to, and primarily with your help.

We we see some slowing demand, which we're adjusting to.

Primarily with with your help.

Speaker 5: But as to the outlook, we have great plans. We need to drive transformation forward. We have a lot of energy transition related activities and manufacturing and other industries. We have transformation projects related to technology.

But as to the outlook.

We have great plans, we need to drive transformation forward, we have a lot of energy transition related activities in manufacturing and other industries, we have transformation projects related to technology.

Speaker 5: All of those things are still things we need to do, but right now we're going to slow them down or pause them.

All of those things are still things, we need to do but right now we're going to slow them down or paused them and that is really the the.

Speaker 5: And that is really the sentiment that we get from our clients right now, which is not unusual when you think about where we are and everything that you read about. So it is still for them a manageable environment and you can tell by seeing what they're doing with their own workforce. They're holding on to their own workforce by and large.

Sentiment that we get from our clients right now which is not unusual when you think about where we are and everything that you read about so it is still for them.

Manageable environment, then you can tell by seeing what theyre doing with their own workforce, they are holding onto their own workforce by and large and they're flexing up and down with with our workforce and you can see the sequentially sequential stability that we talked about both from the U S.

Speaker 5: And they're flexing up and down with our workforce. And you can see the sequentially, sequential stability that we talked about both from the US.

Speaker 5: and in some areas also in Europe as a positive sign, as just as Jack said, you know, some of that is of course, you know, maybe missing the season elliptic that we're getting.

And in some areas also in Europe as a positive sign as just as Jack said.

Some of that is of course may be missing that.

Seasonal uptick that we're getting.

Speaker 12: But on the whole, they remain optimistic, but uncertain on when they would need to accelerate the requisition of talent to a larger degree. And for now, they're a little bit in a waiting pattern to get some further clarity. That's how I describe this, if that is of any help.

But on the whole they remain optimistic about uncertain on when they would need to accelerate the acquisition of talent to a larger degree and for now they're a little bit in the waiting pattern to get some further some further clarity that's how I would describe this.

If that is of any hub.

Speaker 11: No, actually that's super helpful. I didn't really appreciate the color. Maybe just not a follow up for my second. Can you talk a little bit about the color you're seeing in Asia Pacific? Because Middle East or at least Asia Pacific, you called out continues to be relatively resilient. So it was easy to provide a little bit more there. That'd be helpful. Thanks for all the color. Yep.

No actually that's super helpful and I really appreciate the color maybe just.

My second can you talk a little bit about the color you're seeing in Asia Pacific and the middle East or at least Asia Pacific you called out continues to be.

Relatively resilient.

Providing a bit more there that'd be helpful. Thanks for all the color yes, yes.

Speaker 5: Yes, both of the regions Asia-Pac and Latin America are seeing very good trends. Especially in Asia-Pac, we've talked about Japan being a very strong operation. This will be our 35th consecutive quarter of growth.

Yes.

Both of the regions Asia Pac and Latin America are seeing very good trends and especially in Asia Pac we've talked about Japan being a very strong operation. This will be the 35th consecutive quarter of growth, we're performing very well in Japan and many of the other countries and the regions are also.

Speaker 5: very well in Japan. Many of the other countries in the regions are also performing well. So they are still holding up and it really speaks to the strength.

So performing well so they are still holding up and it really speaks to the strength of our geographic diversification. So not only are brand diversification, but also geo diversification in times like this can be very helpful. Because we see that business.

Speaker 5: of our geographic diversification, so not only a brand diversification, but also a geodiversification. In times like this can be very helpful because we see that business continuing to move forward. They are clearly benefiting still from the overall impact of growing demographics still being very instrumental in the global supply chain.

<unk> to move move forward and.

There they are clearly benefiting from the overall impact of growing.

Demographics still being very instrumental in the global supply chain.

Speaker 12: And you know that for now at least that is what we're seeing and that's what we're hearing from those two regions So it's good for us to see that progression

And that for now at least that is what we're seeing and that's what we're hearing from those two regions. So it's very it's good for us to see that progression.

Speaker 1: Thank you. Our next question comes from Andrew Steinerman with JP Morgan. Your line is open.

Thank you. Our next question comes from Andrew Steinman with J P. Morgan Your line is open.

Speaker 13: Hi, good morning. This is Stephanie Stepin and for Andrew. I heard your comment on how you're centralizing the finance and technology systems. Can you give us an update on where you stand and rolling out your front office power suite?

Hi, Good morning, this is Stephanie stepping in for Andrew.

I heard your comment on how you're centralizing the finance and technology systems can you give us an update on where you stand in rolling out your front office suite.

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Speaker 2: Sure, Stephanie. I'd say, is Jonas said on the front office in terms of power suite, we're in very, very good shape. That's been a multi year journey where we're towards the end of that with 75% of our...

Sure Stephanie I would say.

As Jonas said on the front office in terms of power suite, we're in very very good shape that's been.

Our multi year journey, where we're towards the end of that with 75% of our businesses being being on the new front office through the end of this year. So we're very pleased about that.

Speaker 2: businesses being on the new front office through the end of this year. So we're very pleased about that.

Speaker 2: And doing a lot of work as we speak to your point on the back office, which is global technology and finance platforms.

And doing a lot of work as we speak to your point on the back office, which is global technology and finance platforms, and making very good progress. So we have a cloud enabled.

Speaker 2: and making very good progress. So we have a cloud-enabled industry-leading back office platform, we're live in five countries.

Industry, leading back office platform, we're live in five countries.

Speaker 2: We're in flight in many more through the second half of 2024. I believe we'll have over 50% of our revenues on the new cloud enabled back office.

We're in flight and many more through the second half of 2024, I believe we will have over 50% of our revenues on the new cloud enabled back office.

Speaker 2: And that's quite significant for us because what we're also doing at the same time.

And that's quite significant for us because what we're also doing at the same time.

Speaker 2: is now we have the infrastructure to do more and more standardization and centralization. And we're progressing that as we speak in Europe .

Now we have the infrastructure to do more and more standardization and centralization and we're progressing that as we speak in Europe and Thats a lot of significant work that we're undertaking and that's what I referred to when I mentioned that we are taking SG&A down significantly, but one area, where we're continuing to invest is in this transformation.

Speaker 2: And that's a lot of significant work that we're undertaking. And that's what I refer to when I mentioned that we are taking SGNA down significantly, but one area where we're continuing to invest is in this transformation. And you can see that in our corporate expenses.

And you can see that in our corporate expenses and Youll see that in a more significant way into the fourth quarter as well. So that is where we're making some very significant progress. We're very excited about that and I think Jan as you wanted to comment on that as well, yes, I think Stephanie for US. This is a huge strategic move and we think it is.

Speaker 2: And you'll see that in a more significant way into the fourth quarter as well. So that is where we're making some very significant progress. We're very excited about that.

Speaker 5: And I think Jonas, you wanted to comment on that as well. Yeah, I think Stephanie, for us, this is a huge strategic move and we think it's a big differentiator for us.

Big differentiator for us to have common global front and back office technology platforms and as you can imagine the first phase of course is all about driving commonality and process alignment and generating productivity, but the add ons that we can already see some progress.

Speaker 5: to have common global front and back office technology platforms.

Speaker 12: And as you can imagine, the first phase, of course, is all about, you know, driving, commonality and process alignment.

Speaker 12: and generating productivity, but the add-ons that we can already see some progress on, but think yield great opportunities into the future, is applying AI to the data and the insights that we can generate and then replicate very quickly across.

But think yield great opportunities into the future applying AI to the data and the insights that we can generate and then replicate very quickly across all of our all of our operations and all of our functions as well. So so it is a very heavy and labor intense.

Speaker 12: all of our operations and all of our functions as well. So it is a very heavy and labor intensive and resource intensive journey that we have been on now for the better part of three and a half years.

And resource intensive journey that we have been on now for the better part of three and a half years, but.

Speaker 12: But we think this has the promise of really generating a lot of value for our clients, our candidates, and for the company looking into the future.

But we think this has the promise of really generating a lot of value for our clients our candidates and for the company looking into the future.

Speaker 13: Okay, I really appreciate the color. Thank you. I'll just leave it at that.

Okay I really appreciate the color. Thank you I'll just leave it at that.

Thank you Daphne and thanks, everyone.

Thanks.

Speaker 12: I think that brings us to the end of our earnings call for the third quarter. Thanks everyone for listening in and for your questions. We look forward to speaking with all of you again in our fourth and full year earnings call in January . Thanks so much.

I think that brings us to the end of our earnings call for the third quarter. Thanks, everyone for listening in and for your questions. We look forward to speaking with all of you again in our fourth.

And full year earnings call.

In.

Thanks, so much.

Speaker 1: Thank you for your participation. This concludes the program. You may now disconnect. Everyone, have a great day.

Thank you for your participation. This concludes the program you may now disconnect everyone have a great day.

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Speaker 14: I.

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Speaker 3: Welcome to ManPrior Group's third quarter earning results conference call. You'll be put in listen only mode until the question and answer time begins. This call is being recorded. If you care to drop off now, please do so. I would like to turn the call over to ManPrior Group's chairman and CEO , Mr. Jonas Preasing. Sir, you may begin. Welcome to the third quarter conference call for 2023. Our Chief Financial Office.

Speaker 1: Welcome to ManPriot Group's third quarter earning results conference call. You'll be put in listen only mode until the question and your time begins. This call is being recorded. If you care to drop off now, please do so. I would like to turn the call over to ManPriot Group's chairman and CEO , Mr. Jonas Preasing. Sir, you may begin.

Welcome to manpower group's third quarter earnings results Conference call.

You'll be put in a listen only mode until the question and answer time again.

This call is being recorded.

There's a drop off now please do so.

I'd like to turn the call over to manpower groups, Chairman and CEO, Mr. Jonas Prising, Sir you may begin.

Speaker 3: Welcome to the third quarter conference call for 2023. Our Chief Financial Officer, Jack Viginis, is with me today. For your convenience, we have included our prepared remarks within the Investor Relations sections of our website at manparkloop.com.

Welcome to the third quarter conference call for 2023, our Chief Financial Officer, Jack Mcginnis is with me today.

Your convenience we have included our prepared remarks within the Investor relations sections of our website at manpower group Dot com.

Speaker 3: I will start by going through some of the highlights of the quarter. Then Jack will go through the third quarter results and guidance for the fourth quarter of 2023. And I'll then share some concluding thoughts before we start our Q&A session. Jack will now.

I will start by going through some of the highlights of the quarter.

And then Jack will go through the third quarter results and guidance for the fourth quarter of 2023.

I'll then share some concluding thoughts before we start our Q&A session.

Jack will now cover the Safe Harbor language.

Speaker 2: Good morning, everyone. This conference call includes forward-looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertain.

Good morning, everyone. This conference call includes forward looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertainties instead.

Speaker 2: These statements are based on management's current expectations or beliefs. Actually results might differ materially from those projected and afford looking statements. We assume no obligation to update or revise any forward looking statement.

These statements are based on management's current expectations or beliefs actual results might differ materially from those projected in forward looking statements, we assume no obligation to update or revise any forward looking statements.

Speaker 2: Slide two of our earnings release presentation further identifies forward looking statements made in this call. In fact, is that may cause our actual results to differ materially and information regarding reconciliation of non- GAAP measures .

Slide two of our earnings release presentation further identify as forward looking statements made in this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures.

Thanks Jack.

Speaker 12: Thanks to Open by sharing our sadness at the devastating terrorist attacks on Israel and the unfolding come.

I'd like to open by sharing our sadness at the devastating terrorist attacks on Israel and the unfolding conflict.

Speaker 12: Ban Par Group has operated in Israel for over 60 years. I've just spoken with our Israeli colleagues this morning to express our heartfelt support and thank them for working tirelessly to help those impacted and still run the day-to-day operation.

Manpower group has operated in Israel for over 60 years Ive just spoken with our Israeli colleagues. This morning to express our heartfelt support and thank them for working tirelessly to help those impacted and still run the day to day operations.

Speaker 12: amid the suffering that is ongoing. I am in awe of the resilience and dedication to take care of each other. Their families are clients and associates during these extreme challenging.

And then the suffering that is ongoing I am and all of their resilience and dedication to take care of each other.

Families our clients and associates during these extremely challenging times.

Speaker 3: Turning to the broader environment, recent weeks have spent time with our teams and clients in Europe and North America.

Turning to the broader environment in recent weeks I've spent time with our teams and clients in Europe and North America.

Speaker 12: The topic at the forefront of my discussions with clients and business leaders is the global economic outlook. Our things are looking now, how they may evolve, and how this is impacting labor markets and their hiring.

Topic at the forefront of my discussions with clients and business leaders as the global economic outlook. All things are looking now they may evolve and how this is impacting labor markets and their hiring plans.

Speaker 12: Many echo a sentiment of manageable headwinds in the short term. Yet confirm their limited visibility on how the civil war ball.

Many echo his sentiment of manageable headwinds in the short term yet confirm their limited visibility on how this will evolve.

Speaker 12: This is resulting in any increase in cost reduction initiatives, hiring slowdowns and project starts postponed.

Resulting in an increase in cost reduction initiatives hiring slow downs and project start postponements.

Speaker 12: This sentiment treks with the trends in data we see as well. Last quarter we shared that broader economic pressures were building, particularly North America and Europe .

This sentiment trucks, where the trends in data, we see as well.

Last quarter, we shared that broader economic pressures, we're building, particularly North America and Europe.

Speaker 12: Over the last few months, we have seen these pressures increase with the quining outputs in global manufacturing, slowing activity in services, and subdued hiring across some industries as companies pause new hiring and spending following a period of bullish hiring and investment post pandemic.

For the last few months, we have seen these pressures increase with declining outputs and global manufacturing slowing activity in services and subdued hiring across some industries as companies paused, new hiring and spending following a period of bullish hiring and investment post pandemic.

Speaker 12: Just lastly, I joined the many global CEOs across every sector for the Conference Board Business Council meeting in Denver.

Just last week I joined many global Ceos across every sector for the conference Board business Council meeting in Denver.

Speaker 12: were most reported reduced optimism compared to three months ago. And the general consensus was that economic slowing will continue in the short term.

We're most reported reduced optimism compared to three months ago and the general consensus was that economic slowing will continue in the short term.

Speaker 12: Get the art bright spots, business environments and Latin America and Asia Pack remain solid.

Yes, there are bright spots in the business environment in Latin America, and Asia Pac remains solid.

Speaker 12: And even in the region's most impacted by economic slowing, North America and Europe , consumers spending is holding. Employment rates are strong, and workers continue to earn more and move up. The poor inflation is easing, albeit slow.

And even in the regions most impacted by economic slowing North America, and Europe consumer spending is holding employment rates are strong and workers continue to earn more and move up and core inflation is easing, albeit slowly.

Speaker 12: In this uneven and certain environment, we saw organizations act the way they have done in past periods of increased uncertainty and economic headwinds, holding on to their existing permanent workforce and pulling back on staffing and permanent recruitment services in North America and Europe .

And this uneven on Sunshine environments. These organizations act the way they have done in past periods of increased uncertainty and economic headwinds.

Holding on to their existing permanent workforce and pulling back on staffing and permanent recruitment services in North America and Europe.

Speaker 12: Moving on to our financial results, the third quarter revenue was $4.7 billion. Down 5% Euro the year in constant current.

Moving onto our financial results for the third quarter revenue was $4 7 billion down 5% year over year in constant currency.

Speaker 3: A reported avidop for the quarter was $78 million.

Our reported EBITDA for the quarter was $7 million to $8 million.

Speaker 3: just before he's structuring Argentine a hyperinflation rate foreign exchange charges and a small loss on sale EBITDA was $117 million Representing a 36% decrease in constant currency year over year

Adjusted for restructuring, Argentina, Hyperinflationary foreign exchange charges, and a small loss on sale EBITDA was $117 million, representing a 36% decrease in constant currency year over year.

Speaker 5: reported 80-doll margin was 1.7% and adjusted AP-10 margin was 2.5.

Reported EBITDA margin was one 7% and adjusted EBITA margin was two 5%.

Speaker 5: Erning's for diluted chair was 60 cents on a reported basis and $1.38 on an adjusted

Earnings per diluted share was <unk> 60 on a reported basis and $1 38 on an adjusted basis.

Speaker 12: Adjust the earnings per share with down 39% year-over-year in concentric.

Adjusted earnings per share were down 39% year over year in constant currency.

Speaker 12: Although the timing of a recovery is always hard to predict, decades of experience tell us that we must adjust to the existing reality while being ready to pivot quickly when the situation improves. Our industry is at the leading edge, and by this we mean, it is often the first to feel the impact going into an economic downturn and the first to benefit from improving outlooks on the other side.

Although the timing of a recovery is always hard to predict.

Decades of experience tells us that we must adjust to the existing reality, while being ready to pivot quickly when the situation improves.

Our industry is that the leading edge and by this we mean it is often the first to feel the impact going into an economic downturn and the first to benefit from improving outlooks on the other side.

Speaker 12: Though today we are clearly in a slow environment, labor markets overall are holding steady and transformation agendas continue, though at a more moderate pace.

So today, we are clearly in a slowing environment labor markets overall are holding steady and transformation agendas continue though at a more moderate pace.

Speaker 12: Companies are reluctant to reduce their workforce or pause on initiatives to obstacle and develop their people. And we see this evidence in the demand for experienced academy and manpower my path offerings, which help people learn in demand skills at scale and

Companies are reluctant to reduce their workforce or pause on initiatives to upskill and develop their people and we see this evidenced in the demand for experienced academy and manpower might pass offerings, which help people learn in demand skills at scale and speed.

Speaker 12: In uncertain times, people and companies need trusted partners to show them a path to navigate the uncertain.

In uncertain times people and companies need trusted partners to show them a path to navigate the uncertainty.

Speaker 12: A value proposition to clients and candidates has never been more relevant. In our business model helps them absorb some of the pressures they're feeling today, and prepare to accelerate out of the downturn once the economic recovery begins.

Our value proposition to clients and candidates has never been more relevant and our business model helps them absorb some of the pressures they are feeling today and prepare to accelerate out of the downturn once the economic recovery begins again.

Speaker 12: Employers value the insight and data led guidance on developing and executing an agile workforce stress.

Lawyers value the insights and data led guidance on developing and executing an agile workforce strategy.

Speaker 12: We remain confident that our clear plan to properly grow the business by diversifying, digitizing and innovating is how we help our clients and candidates prepare for the future and be competitive for the long term, while managing the headwinds.

We remain confident that our clear plan to profitably grow the business by diversifying digitizing and innovating in how we help our clients and candidates prepare for the future and be competitive for the long term, while managing the headwinds today.

Speaker 3: With that, over to Jack, take you through the finance.

All over to Jack to take you through the financials. Thanks.

Speaker 2: Thanks, Jonas. Revenues in the third quarter came in at the midpoint of our Consecurrency Guidance Range. Cross-Prophet margin came in.

Thanks, Jonas revenues in the third quarter came in at the midpoint of our constant currency guidance range.

Profit margin came in above our guidance range as adjusted EBITDA was $117 million, representing a 36% decrease in constant currency compared to the prior year period.

Speaker 2: As adjusted, even it was 117 million, representing a 36% decrease in constant currency compared to the prior year period.

Speaker 2: As adjusted, you bit of margin was 2.5%. And came in at the midpoint of our guidance range, representing 120 basis points of decline year over year.

As adjusted EBIT margin was two 5% and came in at the midpoint of our guidance range, representing a 120 basis points of decline year over year.

Speaker 2: During the quarter, the overyear foreign currency movement had an impact on our resolve.

During the quarter.

Year over year foreign currency movements had an impact on our results.

Speaker 2: Well, currency translation drove about a 3% favorable impact to the US dollar reported revenue trend compared to the Consecurrency decrease of 5%.

While currency translation drove about a 3% favorable impact to the U S. Dollar reported revenue trend compared to the constant currency decrease of 5%.

Speaker 2: Organic days adjusted revenue can decrease 4% in the quarter.

Organic days adjusted revenue decreased 4% in the quarter.

Speaker 2: Turning to the EPS bridge, reported earnings per share was 60 cents and included 78 cents of charges related to restructuring, a non-cash-borne currency loss related to the translation of our hyperinflationary Argentina business, and a small loss on sale of our Philippines business.

Turning to the EPS Bridge reported earnings per share was <unk> 60, <unk> and included 78 cents of charges related to restructuring.

Our noncash foreign currency loss related to the translation of our Hyperinflationary, Argentina business and a small loss on sale of our Philippines business.

Speaker 2: Argentines are required to be treated as a hyperinflationary economy and the non-cash currency translation losses reflect the devaluation of the Argentine's peso during the quarter. This is a non-cash accounting charge that our Argentine of business operates in their local current.

Argentina is required to be treated as a hyperinflationary economy and the noncash currency translation losses reflect the devaluation of the Argentine peso during the quarter.

The noncash accounting charges, our Argentina business operates in their local currency.

Speaker 2: Excluding these charges, adjusted EPS was $1.38. Walking from our guidance midpoint, our results included a slightly better operational performance of $0.01, a lower weighted average share count due to repurchases in the quarter, which had a positive impact of $0.01, a lower effective tax rate, which had a positive impact of $0.02.

Excluding these charges adjusted EPS was $1 38 <unk>.

Walking from our guidance midpoint, our results included a slightly better operational performance of <unk>.

A lower weighted average share count to the repurchases in the quarter, which had a positive impact of <unk>.

The lower effective tax rate, which had a positive impact of <unk>.

Speaker 2: The foreign currency impact that was $4.00 worse than our guidance just the weakening of the euro and the pound during the second half of the quarter and interest in other expenses which had a positive $1.00 impact. Next, let's review.

Foreign currency impact was <unk> <unk> worse than our guidance due to the weakening of the euro and the pound during the second half of the quarter.

In interest and other expenses, which had a positive <unk> impact.

Next let's review our revenue by business line.

Speaker 2: Year over year on an organic currency basis, the Manpower brand reported a revenue decline of 3%. The experienced brand declined by 10% and Town Solutions brand declined by 14%. The experienced decline represented lower activity from both enterprise and convenience customers. The experienced decline represented lower activity from both enterprise and convenience customers.

Year over year on an organic constant currency basis, our manpower brand reported a revenue decline of 3%.

The experienced brand declined by 10% and talent solutions brand declined by 14%.

Experienced decline represented lower activity from both enterprise and convenience customer segments.

Speaker 2: Demand from enterprise technology clients continued to be weak. Within Town Solutions, we saw a significant year-over-year revenue decline in RPO, as well as an expected sequential softening of activity from the second quarter.

<unk> from enterprise technology clients continued to be weak within talent solutions, we saw a significant year over year revenue decline in our PEO as well as an expected sequential softening of activity from the second quarter.

Speaker 2: Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity. Ball right management experienced significant year over year revenue growth on higher outplacement volumes in the quarter, with revenue levels fairly steady from the second quarter.

Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity.

Right management experienced significant year over year revenue growth on higher outplacement volumes in the quarter with revenue levels fairly steady from the second quarter.

Speaker 2: Looking at our gross profit margin in detail, our gross margin came in at 17.6%.

Looking at our gross profit margin in detail our gross margin came in at 17, 6% staffing.

Speaker 2: Staffing margin contributed to a 10 basis point reduction due to mixed shifts as pricing remained strong. Permanent recruitment, including counsel.

Staffing margin contributed to a 10 basis point reduction due to mix shifts as pricing remains strong.

Permanent recruitment, including talent solutions our Po.

Speaker 2: contributed a 70 basis point G.P. margin reduction as permanent hiring demand continued to soften.

Contributed a 70 basis point GP margin reduction as permanent hiring demand continued to soften.

Speaker 2: Bright Management Career Transition with InTown Solutions contributed 30 basis points of improvement as outplacement activity reflected strong year-over-year growth with gross profit steady from the second quarter level. Other items resulted in a 20 basis point.

Bright management career transition within talent solutions contributed 30 basis points of improvement as outplacement activity reflected strong year over year growth with gross profit steady from the second quarter level.

Other items resulted in a 20 basis point margin decrease.

Speaker 2: Moving on to the gross profit by business line, during the quarter, Manpower Brand comprised 59% of gross profit. Our experienced professional business comprised 25% and Talent Solutions comprised 16%.

Moving on to the gross profit by business line during the quarter manpower brand comprised 59% of gross profit our experienced professional business comprised 25%.

And talent solutions comprise 16%.

Speaker 2: During the quarter, our consolidated gross profit decreased 9% on an organic constant currency basis year over year.

During the quarter, our consolidated gross profit decreased 9% on an organic constant currency basis year over year.

Speaker 2: Our Manpower brand recorded an organic gross profit decrease of 5% in constant currency year-over-year.

Our manpower brand reported an organic gross profit decrease of 5% in constant currency year over year.

Speaker 2: Organic gross profit in our Xperia's brand decreased 14% in constant currency year over year. Permanent recruitment and other services within Xperia's drove the higher rate of overall GP decrease for the brand.

Organic gross profit in our experienced brand decreased 14% in constant currency year over year permanently.

Permanent recruitment and other services within experience drove the higher rate of overall GP decrease for the brand.

Speaker 2: Organic gross profit in town solutions decreased 15% in constant currency year over year.

Organic gross profit in town solutions decreased 15% in constant currency year over year.

Speaker 2: This was mainly driven by declines in RPO as permanent recruitment continued to weaken during the quarter.

This was mainly driven by declines in our Po as permanent recruitment continued to weaken during the quarter.

Speaker 2: was partially offset by right management on increased outplacement activity.

This was partially offset by write management on increased outplacement activity.

Speaker 2: MSP experienced a very slight decrease in gross profit in the quarter.

<unk> experienced a very slight decrease in gross profit in the quarter.

Speaker 2: Reported SG&A expense in the quarter was $752 million.

Reported SG&A expense in the quarter was $752 million.

Speaker 2: Excluding restructuring costs, SG&A decreased 2.2% year over year on an organic constant currency basis, representing a sequential decrease from the flat level in the second quarter on the same basis.

Excluding restructuring costs SG&A decreased two 2% year over year on an organic constant currency basis, representing a sequential decrease from the flat level in the second quarter on the same basis.

Speaker 2: This reflects significant cost actions during the quarter, resulting in a quarterly headcount reduction of 4% sequentially, and a reduction of 7% year over year, which will result in further cost reductions into the fourth quarter.

This reflects significant cost actions during the quarter, resulting in a quarterly head count reduction of 4% sequentially and.

And a reduction of 7% year over year, which will result in further cost reductions into the fourth quarter.

Speaker 2: At the same time, we continue to invest in transformation programs included in corporate expansion.

At the same time, we continue to invest in transformation programs included in corporate expense.

Speaker 2: These are strategic investments expected to drive medium and long-term productivity and efficiency enhancements across our technology and finance functions worldwide.

These are strategic investments expected to drive medium and long term productivity and efficiency enhancements across our technology and finance functions worldwide.

Speaker 2: The underlying SG&A decrease is largely consisted of operational costs of $16 million offset by currency changes of $19 million.

The underlying SG&A decrease was largely consisted of operational costs of $16 million offset by currency changes of $19 million.

Speaker 2: Adjusted SG&A expenses as the percentage of revenue represented 15.3% in constant currency in the third quarter, reflecting lowered operational leverage on the revenue decline. Restructuring costs totaled $38 million.

Adjusted SG&A expenses as a percentage of revenue represented 15, 3% in constant currency in the third quarter, reflecting lower operational leverage on the revenue decline restructuring cost totaled $38 million.

Speaker 2: The America segment comprised 24% of consolidated revenue. Revenue in the quarter was $1.1 billion, representing a decrease of 7% compared to the prior year period on a constant currency basis.

The Americas segment comprised 24% consolidated revenue revenue in the quarter was $1 1 billion, representing a decrease of 7% compared to the prior year period on a constant currency basis.

Speaker 2: Reported LUP was $38 million and includes $6 million in restructuring costs.

Reported OUP was 38 million and includes 6 million of restructuring costs as adjusted <unk> was $44 million and OUP margin was 4%.

Speaker 2: As adjusted, OUP was 44 million and OUP margin was 4%.

Speaker 2: The majority of their structuring costs related to North America with the balance recorded in Latin America.

The majority of the restructuring costs related to North America with the balance recorded in Latin America.

Speaker 2: The U.S. is the largest country in the America segment, comprising 68% of segment revenues.

The U S is the largest country in the Americas segment, comprising 68% of segment revenues.

Speaker 2: Revenue in the U.S. was $753 million during the quarter, representing a 14% days-adjusted decrease compared to the prior year.

Revenue in the U S was $753 million during the quarter, representing a 14% days adjusted decrease compared to the prior year.

Speaker 2: As the adjusted to exclude restructuring costs, OUP for our US business was 29 million in the quarter, representing a decrease of 52% from the prior year. As adjusted, OUP margin was 3.8%.

Adjusted to exclude restructuring costs OUP for our U S business was $29 million in the quarter, representing a decrease of 52% from the prior year.

As adjusted OUP margin was three 8%.

Speaker 2: Within the U.S., the manpower brand comprised 25% of gross profit during the quarter. Revenue for the manpower brand in the U.S. decreased 16% on a day's adjusted basis during the quarter. Representing an improvement from the 19% decrease in the second quarter.

Within the U S demand power brand comprised 25% of gross profit during the quarter revenue for the manpower brand in the U S decreased 16% on a days adjusted basis during the quarter, representing an improvement from the 19% decrease in the second quarter.

Speaker 2: Experience brand in the US comprises 46% of gross profit in the quarter. Within experience in the US, IT skills comprise approximately 90% of revenue.

Experienced brand in the U S comprised 46% of gross profit in the quarter.

With an experienced in the U S. It skills comprised approximately 90% of revenues.

Speaker 2: On a day's adjusted basis, experienced US revenue decreased 15% as we anniversary significant 2022 organic growth of 16%.

On a days adjusted basis experienced U S revenue decreased 15% as we anniversary significant 2022 organic growth of 16%.

Speaker 2: As referenced earlier, the year-goal period reflected significant growth from enterprise clients who have had weak demand in the current year.

As referenced earlier the year ago period reflected significant growth from enterprise clients, who have had weak demand in the current year.

Speaker 2: Town solutions in the U.S. contributed 29% to gross profit and experienced revenue decline of 18% in the quarter. This was driven by a decrease in RPO revenues in the U.S. As permanent hiring programs continued at lower levels in the third quarter.

<unk> solutions in the U S contributed 29% of gross profit and experienced revenue decline of 18% in the quarter. This was driven by a decrease in <unk> revenues in the U S. As permanent hiring programs continued at lower levels in the third quarter.

Speaker 2: The USMSP business out revenue decline as we reduce some lower margin activity. I'll place an activity within our right management business to strong revenue increase.

The U S. MSP business saw revenue decline as we reduce some lower margin activity, while outplacement activity within our right management business drove strong revenue increases.

Speaker 2: In the U.S., RPO, MSP, and right management all experience relatively steady revenue levels from the second quarter.

In the U S <unk> MSP and right management, all experienced relatively steady revenue levels from the second quarter.

Speaker 2: In the fourth quarter of 2023, for our U.S. businesses overall, we expect a slightly improved rate of year over year to climb in revenues as compared to the third quarter.

In the fourth quarter of 2023 for our U S businesses overall, we expect a slightly improved rate of year over year decline in revenues as compared to the third quarter.

Speaker 2: Southern Europe revenue comprised 45% of consolidated revenue in the quarter.

Southern Europe revenue comprised 45% of consolidated revenue in the quarter.

Speaker 2: Revenue in Southern Europe came in at 2.1 billion, representing a 3% decrease in organic constant current.

Revenue in Southern Europe came in at $2 1 billion, representing a 3% decrease in organic constant currency.

Speaker 2: Report of LUC was 84 million, and includes 4 million of restructuring costs.

We're part of the OUP was $84 million and includes $4 million of restructuring costs.

Speaker 2: As adjusted, OUP was 88 million and OUP margin was 4.2%. The majority of the restructuring charges related to reductions in the 7-Europe regional head-off.

As adjusted OUP was $88 million and OUP margin was four 2% the majority of the restructuring charges related to reductions in the southern Europe Regional head office team.

Speaker 2: France revenue comprised 57% of the southern Europe segment and revenue equaled 1.2 billion in the quarter. Down 2% on a day's adjusted, constant currency base.

France revenue comprised 57% of southern Europe segment, and revenue equaled $1 2 billion in the quarter down 2% on a days adjusted constant currency basis.

Speaker 2: After adjusting for modest restructuring charges, adjusted OUP for our France business was 49 million in the quarter representing a decrease of 20% in constant currency. Adjusted OUP money.

After adjusting for modest restructuring charges adjusted OUP for our France business was $49 million in the quarter, representing a decrease of 20% in constant currency.

Adjusted OUP margin was 4%.

Speaker 2: We are estimating the year over year, Constantine Currency revenue trend in the fourth quarter for France to represent a modest further decline from the third quarter trend based on October activity today.

We are estimating the year over year constant currency revenue trend in the fourth quarter for France to represent a modest further decline from the third quarter trend based on October activity to date.

Speaker 2: Revenue in Italy equals 414 million in the quarter and was down 2% on a day's adjusted constant currency base.

Revenue in Italy, equaled $414 million in the quarter and was down 2% on a days adjusted constant currency basis.

Speaker 2: OUP equal 27 million and OUP margin was 6.5%.

P equaled $27 million and OUP margin was six 5%.

Speaker 2: We expect a similar rate of constant currency revenue defined in the fourth quarter compared to the third quarter.

We expect a similar rate of constant currency revenue decline in the fourth quarter compared to the third quarter.

Speaker 2: A Northern Europe segment COVID-19% of consolidated revenue in the quarter. Revenue of 914 million represented at 10% decline in constant current.

Our northern Europe segment COVID-19% of consolidated revenue in the quarter.

Revenue of $914 million represented a 10% decline in constant currency.

Speaker 2: After excluding restructuring costs of 28 million, adjusted OUP was negative 3 million, no U.P. margin was negative 0.4%.

After excluding restructuring costs of $28 million adjusted OUP was negative $3 million no <unk> margin was negative <unk>, 4%.

Speaker 2: The restructuring charges represented 15 million in Germany, largely related to head office right sizing and related activities in view of the ongoing pro-Servia line down.

The restructuring charges represented $15 million in Germany, largely related to head office, right sizing and related activities and view of the ongoing pro Serbia wind down.

Speaker 2: 7 million in the Nordx mainly related to workforce optimization within the businesses and modest additional charges in the UK, the Netherlands, and belt.

$7 million in the Nordics, mainly related to workforce optimization within the businesses and.

And modest additional charges in the U K, the Netherlands and Belgium.

Speaker 2: A largest market in northern Europe segment is the UK, which represented 35% of segment revenues in the quarter.

Our largest market in northern Europe segment is the UK, which represented 35% of segment revenues in the quarter.

Speaker 2: During the quarter, U.K. revenues decreased 15% on a day's adjusted currency pay.

During the quarter UK revenues decreased 15% on a days adjusted constant currency basis.

Speaker 2: This reflects an additional decline from the 12% decrease in the second quarter on the same base.

This reflects an additional decline from the 12% decrease in the second quarter on the same basis, we expect a similar rate of constant currency revenue decline in the fourth quarter compared to the third quarter.

Speaker 2: We expect a similar rate of constituency revenue decline in the fourth quarter compared to the third quarter.

Speaker 2: In Germany, revenues increase 4% in days adjusted constant currency in the quarter, representing three consecutive quarters of growth driven by our manpower business, particularly due to the strength and the automotive sector.

In Germany revenues increased 4% and days adjusted constant currency in the quarter, representing three consecutive quarters of growth driven by our manpower business, particularly due to the strength in the automotive sector.

Speaker 2: The previously announced wind down of our ProServia Manage Service Business in Germany is advancing with significant progress with the workers' councils and impacted clients during the quarter.

The previously announced wind down of our pro Serbia managed service business in Germany is advancing with significant progress with the Workers' Council and impacted clients during the quarter.

Speaker 2: We are tracking to conclude all wind down related actions by the end of the year with some remaining transition activity, concluding through the first half of 2024, which we will carve out separately.

We are tracking to conclude all wind down related actions by the end of the year with some remaining transition activity, including through the first half of 2020 for which we will carve out separately.

Speaker 2: We anticipate additional restructuring charges related to the wind down in the fourth quarter and provide a further update when we announce our fourth quarter earnings.

We anticipate additional restructuring charges related to the wind down in the fourth quarter and we'll provide a further update when we announce our fourth quarter earnings.

Speaker 2: The service business has been a significant drag on our Germany operations and completion of the wind down activity will improve profitability going forward.

Our service business has been a significant drag on our Germany operations and the completion of the wind down activity will improve profitability going forward.

Speaker 2: Overall, on the fourth quarter, we are expecting a slightly lower rate of conste currency revenue growth compared to the third quarter trend.

Overall in the fourth quarter, we are expecting a slightly lower rate of constant currency revenue growth compared to the third quarter trend.

Speaker 2: In the Netherlands, revenue decreased 5% on a day's adjusted on a currency basis, and this represented a slightly improved rate of decline from the second quarter on the same base.

In the Netherlands revenue decreased 5% on a days adjusted constant currency basis, and this represented a slightly improved rate of decline from the second quarter on the same basis.

Speaker 2: The Asia-Pacific Middle East Agamint comprises 12% of total company revenue. In the quarter, revenue was down 2% in currency to $565 million. After excluding monetary structuring costs related to our Australia business, adjusted the GDP was 25 million and the GDP margin was 4.4%.

The Asia Pacific Middle East segment comprises 12% of total company revenue.

In the quarter revenue was down 2% in constant currency to $565 million.

After excluding modest restructuring costs related to Australia business, adjusted OUP was $25 million and OUP margin was four 4%.

Speaker 2: The largest market in the 8th KME segment is Japan, which represented 49% of segment revenues in the quarter.

The largest market in the <unk> segment is Japan, which represented 49% of segment revenues in the quarter.

Speaker 2: Revenue in Japan grew 10% in days adjusted constant currency. We remain very pleased with the consistent performance of our Japan business, and we expect continued strong revenue growth in the fourth quarter.

Revenue in Japan grew 10% and days adjusted constant currency, we remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the fourth quarter.

Speaker 2: We also completed the sale of our Philippines business during the quarter, which transitions into a manpower franchise that's going forward.

We also completed the sale of our Philippines business during the quarter, which transitions into a manpower franchise going forward.

I'll now turn to cash flow and balance sheet and.

Speaker 2: In the third quarter, free cash flow represented $245 million compared to $254 million in the prior year.

In the third quarter free cash flow represented $245 million compared to $254 million in the prior year.

Speaker 2: At the end of the third quarter, day sales outstanding were flat at 59 days. During the third quarter, capital expenditures represented 21 million.

At the end of the third quarter days sales outstanding were flat at 59 days during.

During the third quarter capital expenditures represented $21 million.

Speaker 2: During the third quarter, Rue purchased 636,000 shares of SPAC for $50 million.

During the third quarter, we repurchased 636000 shares of stock for $50 million.

Speaker 2: As of September 30th, we have 293,000 shares remaining for a repurchase under the share program approved in August of 2021. An additional 5 million shares remaining for a repurchase under the share program approved in August of 2023.

As of September 30th we have 293000 shares remaining for repurchase under the share program approved in August of 2021, and an additional 5 million shares remaining for repurchase under the share program approved in August of 2023.

Speaker 2: Our balance sheet ended the quarter with cash of 571 million and total debt of 962 million. Net debt equal 391 million at quarter-end. Our debt ratio is a quarter-end, reflect total adjusted gross debt to trailing 12 months adjusted to EBITDA 1.41 and total debt to total capitalization at 29.

Our balance sheet ended the quarter with cash of 571 million and total debt of $962 million net.

Net debt equaled 391 million at quarter end.

Our debt ratios at quarter end reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of one for one and total debt to total capitalization at 29%.

Speaker 2: Are vet and credit facilities remain unchanged during the cold order?

Debt and credit facilities remain unchanged during the quarter.

Speaker 2: Next, I'll review our outlook for the fourth quarter of 2023. Based on trends in the third quarter and October activity today, our forecast is cautious and anticipates that the fourth quarter will continue to be challenging with further declines in our man-powered businesses in Europe .

Next I'll review, our outlook for the fourth quarter of 2023.

Based on trends in the third quarter and October activity to date, our forecast is cautious and anticipates that the fourth quarter will continue to be challenging with further declines in our manpower businesses in Europe.

Speaker 2: Our forecast also anticipates a significant reduction in activity in our Israel business due to the current conflict.

Our forecast also anticipates a significant reduction in activity in our Israel business due to the current conflict.

Speaker 2: Our forecast also anticipates ongoing slowing of permanent recruitment activity and further offsets by cost actions being taken.

Our forecast also anticipates ongoing slowing of permanent recruitment activity and further offset by cost actions being taken.

Speaker 2: We are forecasting underlying earnings per share for the fourth quarter to be in the range of $1.17 to $1.27, which includes an unfaerable foreign currency impact of one cent per share.

We are forecasting underlying earnings per share for the fourth quarter to be in the range of $1 17 to $1 27.

Which includes an unfavorable foreign currency impact of <unk> <unk> per share.

Speaker 2: We have this closed our foreign currency translation rate estimates at the bottom of the guidance slide.

We have disclosed our foreign currency translation rate estimates at the bottom of the guidance slide.

Speaker 2: A Confec currency revenue guidance range is between a decrease of 4% and 8%. And at the midpoint, represents a 6% decrease.

Our constant currency revenue guidance range is between a decrease of 4% and 8% and at the midpoint represents a 6% decrease.

Speaker 2: The impact of net dispositions in less working days contributes to an organic days adjusted constipurancy revenue trend of about a 5.5% decrease at the midpoint.

The impact of net dispositions and less working days contributes to an organic days adjusted constant currency revenue trend of about a five 5% decrease at the midpoint.

Speaker 2: This represents an additional 1% decrease from the third quarter trend ignoring rounding on the same base.

This represents an additional 1% decrease from the third quarter trend ignoring rounding on the same basis.

Speaker 2: We expect our EBITDA margin during the fourth quarter to be down 110 bases points at the midpoint compared to the prior year.

We expect our EBITDA margin during the fourth quarter to be down 110 basis points at the midpoint compared to the prior year.

Speaker 2: We estimate that the effect of tax rates for the fourth quarter will be 32.5%. Which reflects the mixed effect of lower earnings from lower tax geographies in the current environment with minimal expected offsetting taxides.

We estimate that the effective tax rate for the fourth quarter will be 32, 5%, which reflects the mix effect of lower earnings from lower tax geographies in the current environment with minimal expected offsetting tax items.

Speaker 2: Compared to our previous estimate of a 30% tax rate before the worsening conditions, this update represents a 5% reduction in a fourth quarter EPS.

Third to our previous estimate of a 30% tax rate before the worsening conditions.

This update represents a 5% reduction in our fourth quarter EPS.

Speaker 2: When business and our lower rate geographies begin to improve, the tax rate will begin to return to the lower rate.

When business in our lower rate geographies begin to improve the tax rate will begin to return to the lower rates.

Speaker 2: As we consider other tax-related matters for 2024, I wanted to provide a brief update on the reduction of the French business tax, known as CVAE based on recent development.

As we consider other tax related matters for 2024 I wanted to provide a brief update on the reduction of the French business tax known as CVA E. Based on recent developments previously the French government has announced their intention to fully abolished the remaining component of the French business tax in 2024.

Speaker 2: Previously, the French government had announced their intention to fully abolish the remaining components of the French business tax in 2024.

Speaker 2: The preliminary French budget was publicized in late September and instead announced that the remaining component of the French business tax would now be abolished on a pro-rata basis over the next four years.

Preliminary French budget was publicized in late September and instead announced that the remaining component of the French business tax would now be abolished on a pro rata basis over the next four years.

Speaker 2: As a result, the additional 1.5% improvement in our global effective tax rate from the abolishment of the CVEAE will be spread over the next four years, then anticipated reduction of about 35 basis points in 2024.

As a result, the additional one 5% improvement in our global effective tax rate from the abolishment of the CVA will be spread over the next four years, the anticipated reduction of about 35 basis points in 2024.

Speaker 2: We will continue to monitor any developments on the France budget as is reviewed by the Parliament through year-end.

We will continue to monitor any developments on the France budget as is reviewed by the parliament through year end.

Speaker 2: As usual, our guidance does not incorporate restructuring charges, or additional share repurchases, and we estimate our weighted average shares to be 49.9 million.

As usual our guidance does not incorporate restructuring charges or additional share repurchases and we estimate our weighted average shares to be $49 9 million.

Speaker 2: As I mentioned, we do expect to have additional restructuring charges associated with the wind down of our Pro-Servium Manor Service Business in Germany. And we will disclose those and any additional restructuring charges separately when we report our fourth quarter earning.

As I mentioned, we do expect to have additional restructuring charges associated with the wind down of our <unk> managed service business in Germany, and we will disclose those and any additional restructuring charges separately when we report our fourth quarter earnings.

Speaker 2: Our guidance also does not include the impact of a non-cash currency translation adjustment for our hyperinflationary Argentina business, and we will also report that separately. I will now turn it back to Jonas.

Our guidance also does not include the impact of the noncash currency translation adjustment for a hyperinflationary, Argentina business and we will also report that separately I will now turn it back to you on us Thanks Jack.

Speaker 12: On our last call, I shared that we're adapting to the current market environment and will not shy away from taking decisive actions that deliver on our strategy to simplify our operations and maximize return on our investment.

On our last call I shared that we're adapting to the current market environment, we will not shy away from taking decisive actions that deliver on our strategy to simplify operations and maximize return on our investments.

Speaker 12: And the third quarter, we continue to execute against this blast.

In the third quarter, we continued to execute against this plan.

Speaker 12: Our experienced leadership team is using a fine point pen versus a broad brush to manage costs and invest for growth. And we're confident that our actions will preserve margin in the current environment ready for the rebound when it occurs and be more efficient in the loan.

Our experienced leadership team is using a fine point pen versus a broad brush to manage costs and invest for growth and we're confident that our actions will preserve margin in the current environment ready for the rebound when it occurs and be more efficient in the long term.

Speaker 12: We have been executing a transformation agenda in support of our diversity education, digitization, and innovation strategy for several years.

We have been executing a transformation agenda in support of our diversification Digitization and innovation strategy for several years.

Speaker 12: We're not doubling down on centralized systems and global standardized processes to drive economic benefit across our finance and global technology funds.

We're not doubling down on centralized systems and global standardized processes to drive economic benefits across our finance and global technology functions.

Speaker 12: By leveraging leading global platforms and driving their adoption, we will enable country teams to focus on strategic and operational decision-making so we can execute in the market at speed and increased market share.

By leveraging leading global platforms and driving the adoption.

Will enable country teams to focus on strategic and operational decision, making so we can execute in the market at speed and increased market share.

Speaker 12: We're excited about the opportunity to leverage our global IT and finance infrastructure to automate non-value added tasks, to drive recruited productivity, and generate valuable client and candidate.

We're excited about the opportunity to leverage our global it and finance infrastructure to automate non value added tasks to drive recruiter productivity and generates valuable client and candidate insights.

Speaker 12: Our diversification plan is how we accelerate growth of higher margin business across all our brands. For manpower, this means building loyalty with skilled candidates so we can deliver best and class talent in both permanent and temporary staffing. In labor markets, we believe will structurally be more constrained due to demographics and shifting skills.

Our diversification plan is how do we accelerate growth of higher margin business across all our brands for manpower. This means building loyalty with skilled candidates. So we can deliver best in class talent in both permanent and temporary staffing and labor markets. We believe we're structurally be more constrained due to demographics and shifting skills.

Needs.

Speaker 12: Our own research and data tells us that people want to work for companies they trust and believe in and who will guide them to move up and earn more.

On research and data tell us that people want to work for companies. They trust and believe in and who will guide them to move up and earn more.

Speaker 12: I am delighted that our new Man Park campaign, Human Power, launches in many of our key markets.

I am delighted that our new Madison Park campaign human power launches in many of our key markets. This week.

Speaker 12: strengthening our positioning for candidates as an employer of choice with the data, expertise, and talent and teams to guide them to achieve their potential as they progress their career joy.

Strengthening our positioning for candidates as an employer of choice with the data expertise and talent and teams to guide them to achieve their potential as they progress their career journey.

Speaker 12: Our message to workers is clear. Manpower values you, we are committed to your development, and we are by your side to build your skills and offer great career opportunities.

Our message to workers is clear.

Manpower that assume we are committed to your development.

And we are by your side to build your skills and offer great career opportunities.

Speaker 12: This campaign is just one example of our role in preparing people for future work and one that is also more green and more digital.

This campaign is just one example of our role in preparing people for future work and one that is also more green and more digital.

Speaker 12: Global Green Energy Transition creates demand for millions of skilled workers to fill new roles in renewable energy, electrification, battery technology, hydrogen and more.

Global Green energy transition creates demand for millions of skilled workers fulfill new roles in renewable energy electrification battery technology hydrogen and more.

Speaker 12: We are committed to preparing people for these new opportunities and recently announced our partnership with Indo-NG and the European Battery Alliance to upskill as many as 800,000 workers for jobs in the green battery value chain by 2020.

We're committed to preparing people for these new opportunities and recently announced our partnership with <unk> energy and the European Battery Alliance to Upskill as many as 800000 workers for jobs in the Green battery value chain by 2025.

Speaker 12: A reputation, a strategic partner to guide companies to transformation is recognized by industry analysts too.

Our reputation and our strategic partners to guide companies through transformation is recognized by industry analysts to.

Speaker 12: Experience has been named the leader and star performer in Everest Group's peak matrix assessment of US condition staffing services, scoring highly for its AI, enabled capabilities in IT staffing, project solutions, and managed service.

<unk> has been named a leader and star performer in Everest group's peak matrix assessment of U S contingent staffing services, scoring highly for its AI enabled capabilities in it staffing project solutions and managed services.

Speaker 12: And our map all brand has been recognized in the UK as a leadering contingent talent and strategic solution.

And our manpower brand has been recognized in the UK as a leader in contingent talent in strategic solutions, scoring highly for its strong emphasis on the postpaid experience and investment in Upskilling and Reskilling services, including our might pass program associated academies and candidate facing mobile app.

Speaker 12: scoring highly for its strong emphasis on the sportive experience and investment in upskilling and re-skilling service.

Speaker 12: including our MyPath program, Social Academies, and Candidate Facing Mobile Apps.

Speaker 12: Employers now understand that there's no path to growth without people and the ability to hire, trade and develop human capital is critical to success on every time for rights.

Employers now understand that there's no path to growth with our people and the ability to hire train and develop human capital is critical to the success on every time horizon.

Speaker 12: I'd like to close by thanking our teams around the world for their engagement and contributions, which is how we're able to consistently deliver to our clients, our people, our partners, and our community.

Like to close by thanking our teams around the world for their engagement on contributions, which is how we're able to consistently deliver to our clients our people our partners and our communities I'd now like to open the line for Q&A operator.

Speaker 3: I'd now like to open the line for Q&A. Operator.

Speaker 1: Thank you, if you'd like to ask a question, please press star 11.

Thank you if you'd like to ask a question. Please press star one one.

Speaker 1: If your question has been answered and you like to move yourself into Q, please first start one one again. Our first question comes from Mark Marcon with Beard. Your line is open.

If your question has been answered and you'd like to remove yourself from the queue. Please press star one again.

Our first question comes from Mark Mark Hahn with Baird. Your line is open.

Speaker 4: Good morning, you know, this and Jack, appreciate the opportunity to ask some questions.

Good morning.

Jack I appreciate the.

Opportunity to ask questions.

Sure.

Speaker 4: A couple of really quick number questions and one philosophical question. With regards to the exit rate in the US.

A couple of really quick number questions and then one philosophical question.

With regards to the exit rates in the U S, France, and Italy can you give us an update in terms of where the exit rates were.

Speaker 4: France and Italy. Can you give us an update in terms of where the exit rates were for each of those three major markets as we exit at the quarter?

For each of those three major markets as we exited the quarter.

Speaker 2: Sure Mark, I'd be happy to start with that. So as we look at the US.

Sure Mark I'd be happy to start with that so as we look at that.

The U S.

Speaker 2: and we exited the quarter. I'd say it was slightly better than the full quarter rate on an overall basis.

And we exited the quarter I would say it was slightly better than the full quarter right on an overall basis.

Speaker 2: on a day's adjusted basis. So, you know, when you look at the total for the quarter overall for the US at the mineness.

On a days adjusted basis. So when you look at the total for the quarter overall for the U S at the minus.

Speaker 2: 14 days adjusted. I'd say slightly better in September and as we guided to the fourth quarter, we did expect

14 days adjusted I'd say slightly better in September and as we guided to the fourth quarter, we did expect stable to slightly better than that.

Speaker 2: stable to slightly better and that's kind of what we're seeing into the fourth quarter. I think the other thing to remember is there was a significant drop off from the third quarter to the fourth quarter in the year ago period. So that's part of the consideration. If I move to France, I would say we ended

What we're seeing into the fourth quarter I think the other thing to remember is there was a significant drop off from the third quarter to the fourth quarter in the year ago period.

So that's part of the consideration if I move to France, I would say.

We ended the quarter.

Speaker 2: at about minus 3% in the month on a day's adjusted basis in the month of September .

At about minus 3% in the month on a days adjusted basis in the month of September and you can see that comparing to the minus 2% for the quarter overall.

Speaker 2: And you can see that comparing to the minus 2% for the quarter overall.

Speaker 2: I think the prism data certainly came out for the industry data. And I'd say that showed that August was a bit steeper in terms of the decrease. And that improved slightly into September .

Think the prism data certainly came out during.

For the industry data and I'd say that showed that August was a bit steeper in terms of the decrease in net debt.

Proved slightly into September, but I guess more relevant to our guidance for Q4, we did indicate that we did see some additional <unk>.

Speaker 2: But I guess more relevant to our guidance for Q4, we did indicate that we did see some additional softening into octop...

Softening into October and that's that's why our guide at about minus 5% at the midpoint is showing some additional.

Speaker 2: And that's why our guide at about minus 5% at the midpoint is showing some additional decreases into the fourth quarter for France.

Decrease is into the fourth quarter for France.

Speaker 2: And I'd say Italy came in at the end of the quarter, pretty similar to where they were trending. The quarter overall on a day's adjusted basis was about minus two. And I'd say they ended the quarter at about that same minus two rate. And I'd say Italy came in at the end of the quarter.

And I would say, Italy came in at the end of the quarter pretty similar to where they were trending.

The quarter overall on a days adjusted basis was about minus two.

And I'd say they ended the quarter at about that same minus two rates.

Speaker 2: And as we look at the guide for the fourth quarter, for Italy, we see a similar level of days adjusted revenue trend into the fourth quarter. So that's a little color on the three largest businesses.

And as we look at the guide for the fourth quarter for Italy, We see a similar a similar level of.

Days adjusted revenue trend into into the fourth quarter. So that's a little color on the on the large on the three largest businesses mark.

Speaker 4: Great, thanks Jack. And then Jack, you always wonder if I'm gonna ask this question. So I'll ask it this time. Perm is a percentage of GP, how's that sitting right now?

Great. Thanks, Jack and then Jack you always.

I Wonder if I'm going to ask this question. So I'll ask it this time.

Perm as a percentage of.

GP how is that how is that sitting right now.

Speaker 2: Yeah, so we did talk about the fact that we expected Perm to continue to come off into the third quarter. That was the big development during the second quarter where we saw Perm step down quite a bit.

Okay.

Yes so.

We did talk about the fact that we expected perm to continue to come off into the third quarter that was the big development. During the second quarter, where we saw we saw perm stepped down quite a bit and as we said it came in as we expected pretty much spot on with our.

Speaker 2: And as we said, it came in as we expected, pretty much spot on with our expectations that it would step down further. That takes perm to about 16.5% of total GP. And not too far away of where we were, you'll remember Mark Pre-Pandemic, we were in that 16.2% range. So perm as a mix of GP is, has normalized quite a bit.

With our expectations that it would step down further that takes perm to about 16, 5% of total GP and not too far away of where we were Youll remember mark pre pandemic. We were in that 16, 2% range. So perm as a mix of GP is.

Normalized quite a bit.

Speaker 4: Great. And then the philosophical question.

Great and then.

Philosophical question.

Wondering.

Speaker 4: You know, in this Jack, you know, how, and obviously it varies by country and you're doing restructuring across the organization, but I'm wondering at present levels how much excess capacity.

Jonas Jack.

And obviously it varies by country and Youre doing restructuring.

Across the organization, but I'm wondering president levels, how much excess capacity.

Speaker 4: do you have at this point? And then how do you think about like,

Do you have at this point.

And then how do you think about like.

Speaker 4: You know, the trends that we're seeing in the US relative to say, you know, the Atlanta Fed's GDP now, you know, projecting like a 5% GDP increase here in the third quarter. It's just kind of interesting just in terms of thinking about overall a lot of discussion around the soft landing and yet staffing has clearly been, you know, in a recessionary environment. I have just wondering how you think of it.

The trends that we're seeing in the U S relative to say.

The Atlanta, Fed's GDP now projecting like a 5% GDP increase here.

In the third quarter.

Kind of interesting just in terms of thinking about.

Overall, a lot of discussion around the soft landing and yet staffing has clearly been.

And in a recessionary environment I'm, just wondering how you think about that.

Speaker 5: Well Mark, good morning and thank you. Yeah, I'm really happy. I'm not an economist that has to sort of predict and explain how we could have a 5% GDP growth in the third quarter.

Well, Mike Good morning, and thank you, yes, I'm really happy I'm not an economist that has to sort of predict and explain how we could have a 5% GDP growth in the third quarter.

Speaker 12: But let me tell you about our business and what we're seeing and how we're thinking about this. As you correctly point out, not for standing GDP growth numbers both in Europe as well as in the US, which are still positive, our industry is operating.

But let me tell you about our business and what we're seeing and how we're thinking about this is as you correctly point out notwithstanding GDP growth numbers, both in Europe as well as in the U S, which are still positive our industry is operating under recessionary like <unk>.

Speaker 12: under recessionary-like conditions. So we're negative here in the US and Canada across most of the European countries as well.

Conditions silver negative here in the U S and Canada across most of the European countries as well so the way we think about managing the business. At this time is as we mentioned in our prepared remarks really using a fine point pen as opposed to a broad brush.

Speaker 12: So the way we think about managing the business at this time is as we mentioned in our prepared remarks, really using a fine point pen as opposed to a broad brush.

Speaker 5: We are maintaining our sales strength, driving for market share growth, seeing our pipelines increase in all of our brands, but seeing time to conclusion and value realization extend.

We are maintaining our sales strength driving for market share growth seeing our pipelines increased in all of our brands, but seeing time to conclusion and value realization extend we are managing to the slowing demand through our delivery capabilities and that's what you'll see us adjust.

Speaker 5: We are managing to the slowing demand through our delivery capabilities, and that's what you see as adjusting.

Speaker 5: in terms of how we're bringing cost down overall. Clearly we're postponing projects that we don't think have a shorter return. So this is a pausing activity, not an elimination activity, and doubling down on transformation projects like the one we spoke about in our prepared remarks around.

Staying.

In terms of how we are bringing.

Cost down overall, clearly we're postponing projects that we don't think have a short term returns. So this is a pausing activity not an elimination activity and doubling down on transformation projects like the one we spoke about in our prepared remarks around centralizing finance and taken.

Speaker 5: centralizing finance and technology to drive great to productivity and efficiency for the organization as a whole as well as recruiters with our global technology.

I'll, let you to drive greater productivity and efficiency for the organization as a whole as well as recruiters with our global.

Technology platforms. So that's how we're managing through it and at this stage clearly there is still a slack and we plan it as such so that we have time to bring in the people when we start to see the business stabilize and we start to see the upturn coming on.

Speaker 5: So that's how we're managing through it. And at this stage, clearly there is still slack and we plan it as such so that we have time to bring in the people when we start to see the business stabilizing and we start to see the upturn coming on the other side.

Speaker 5: So that we have time to bring in new recruiters and meet the increased demand at that point in time. Great.

Right.

So that if you have time to bring in new recruiters and meet the increased demand at that point in time.

Great. Thank you very much.

Thanks, a lot. Thank you.

Speaker 1: Our next question comes from Jeff Silver with BMO Capital Markets. Your line is open.

Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Speaker 6: Thanks so much. You mentioned the cost actions. I was wondering if we just get a little bit more polar where they work. And what do you need to see before saying, that's an up cost actions or we need to do more?

Thanks, so much.

You mentioned the cost actions I was wondering can we just get a little bit more color, where they were and what do you need to see before saying that's enough cost actions or we need to do more.

Speaker 2: Thanks, Jeff. Yeah, I'm happy to talk to that question. So.

Thanks, Jeff Yeah, I'm happy to talk to that question. So.

Speaker 2: You know, as we said, we did take significant cross-actions in the third quarter and we teed that up when we released the second quarter results that we would be leaning more heavily into that.

As we said.

We did take significant cost actions in the third quarter and we teed that up when we released our second quarter results that we would be leaning more heavily into that.

Speaker 2: As in it is a bit of a continuation of the previous discussion we were just having. So as you look at where our businesses are seeing the most pressure, you should expect that that's where we've made some of the biggest adjustments, right? So.

As this is a bit of a continuation of the previous discussion we were just having so as you look at where our businesses are seeing the most pressure.

You should expect that that's where we've made some of the biggest adjustments right. So and to <unk> point, we're doing that in a very careful way, we're preserving sales we want to be well prepared.

Speaker 2: And to Jonas' point, we're doing that in a very careful way. We're preserving sales. We want to be well prepared on the sales activity in the opportunity to take market share. When we start to see improving trends, we're being extremely careful.

On the sales activity and the opportunity to take market share when we start to see improving trends, we are being extremely careful on the sales side, but we are we are otherwise adjusting producers based on the existing demand, so where would that be the U. S is one of the biggest areas, where we've made some pretty significant adjustments.

Speaker 2: on the sales side, but we are otherwise adjusting producers based on the existing demand. So where would that be? The U.S. is one of the biggest areas where we've made some pretty significant adjustments. We talked about

We talked about.

Speaker 2: being down year over year, 7% in our head count. The US is definitely well above that in terms of decreases. I would say another key market we talked about Germany and some of the right sizing we're doing there. We'll have more to say about Croservia in the fourth quarter, but as a result of that, we're making changes to our head office structure in Germany to adapt to the business going forward, which will be largely a manpower business.

Being down year over year, 7% and our head count the U S is definitely well above that in terms of decreases.

I'd say another key market, we talked about Germany, and some of the right sizing. We're doing there we will have more to say about pro Serbia in the fourth quarter, but as a result of that we're making changes to our head office structure in Germany to adapt to the business going forward, which will be largely a manpower business.

Speaker 2: And we made some big adjustments in the UK as well. And you can see the more significant decreases in that market from the enterprise client.

And we made some big adjustments in the UK as well and you can see the more significant decreases in that market from the enterprise clients.

Speaker 2: You know, other markets where we've made some big adjustments, the Nordics, we do saw in our trends, the Nordics came down quite a bit from Q2 to Q3.

Other markets, where we've made some big adjustments the nordics.

You saw in our trends the Nordics came down quite a bit from Q2 to Q3.

Speaker 2: So we've made some pretty significant reductions in Norway and Sweden as part of that. Those are the bigger ones. We continue to make adjustments in France as well.

So we've made some pretty significant reductions in Norway, and Sweden as part of that I'd say those are those are the bigger ones.

We continue to make adjustments in France as well.

Speaker 2: But I'd say in terms of the numbers that we're driving the bigger decreases, those would be the markets that I would highlight.

But I'd say in terms of the numbers that were driving the bigger decreases.

Those would be the markets that I would highlight.

Speaker 6: Okay, that's really helpful. Maybe we can shift gears to the pricing environment if we can talk about how both pay rates and bill rates are going. And are you seeing any pushback? I've had it from clients or maybe more competitive pressure.

Okay. That's really helpful. Maybe we can shift gears to the pricing environment. If we can talk about how both pay rates and bill rates are going and are you seeing any pushback from clients or maybe more competitive pressure.

Speaker 5: Well, just the pricing environment remains competitive and rational and I would say based on the strength of the labor markets.

Well, just the pricing environment remains competitive, but rational and I would say based on the strength of the labor markets broadly the pricing environment remains solid and you can see that in our staffing margins. The decline that we saw a 10 basis points was really all driven.

Speaker 5: broadly, the pricing environment remains solid. And you can see that in our staffing margins, the decline that we saw of 10 basis points was really all driven by mix between various countries, not by pricing concessions. We remain very disciplined in our pricing. And the constraints on the labor markets means that the demand we have for the talent.

By mix between various countries not by.

Pricing concessions, we remained very disciplined in our pricing and.

The constraints on the labor markets means that the demand we have for the talent.

Speaker 5: You know, it's seen as extremely valuable by our client companies and we make sure that we are positioned in the right way with the skill sets that we provide so that we can maintain that pricing discipline. So overall, it is rational, it is of course competitive, but it is still a solid and positive pricing environment for us. Thank you.

<unk> is extremely valuable by our client companies and we make sure that we are positioned in the right way.

With the skill sets that we provide so that we can maintain that that pricing discipline. So overall.

It is rational it is of course competitive.

But it is still a solid and positive pricing environment for us.

Okay. Thanks, so much for the color.

Thanks, Jeff.

Speaker 1: Thank you. Our next question comes from Josh Chan with UBS. Your line is open. Thank you more on the Jonas objective.

Thank you. Our next question comes from Josh Chan with UBS. Your line is open.

Hey, good morning, unison, Jack Thanks for taking my questions.

Speaker 7: I was wondering if you could comment on the US trend. I guess your macro oriented commentary seems, I guess, relatively subdued, but I guess the US business saw a relatively improving trend in Q3 and you're forecasting another improvement into Q4. So I'm just wondering how you're thinking about the trajectory of that business and how you feel about the US business from a trend perspective.

And I was wondering if you could comment on the U S trend I guess youre macro oriented commentary seems I guess relatively subdued, but I guess the U S business saw a relatively improving trend in Q3, and you're forecasting another improvement into Q4. So I'm just wondering how youre thinking about the trajectory of that business.

And how you feel about the U S business.

Such trend perspective.

Speaker 5: Yeah, thanks. It's a great question. And I'll start maybe and then Jack can give a little bit more specificity. So stepping back from what we're seeing into the fourth quarter, really, the change that we are observing is softening in Europe primarily at the Mampal brand. Primarily.

Yes. Thanks.

It's a great question and I'll start maybe and then Jack can give a little bit more specificity. So stepping back from what we're seeing into the fourth quarter really the change that we are observing is softening in Europe, primarily at the manpower brand.

Primarily in France.

Speaker 5: and some other countries, you're too less a degree Italy. So that's the change. Just you look at the out.

And some other countries to a lesser degree Italy. So that's the change yes, you look at the outlook.

Speaker 5: So from a geoprospective, as you've noted, we see sequential stability in the third quarter, we're headowing into the fourth quarter for the US.

From a geo perspective as you've noted.

See sequential stability.

In the third quarter, our hedging into the fourth quarter for the U S and largely that is true for all three brands and if you step out and you look at this from a global perspective talent solutions that an experienced globally are sequentially stable.

Speaker 5: and largely that is true for all three brands.

Speaker 5: And if you step out and you look at this from a global perspective, talent solutions and experience globally are sequentially stable.

Speaker 5: going into the fourth quarter, and the weakness comes in manpower. And as I just mentioned, that weakness primarily relates to weakness in Europe .

Going into the fourth quarter and the weakness comes in manpower and as I, just mentioned that weakness primarily relates to weakness in Europe, but maybe Jack you could give a little bit more specificity on some of the some of the U S business trends sure I'd be happy to so Josh I would say on the U S and the manpower side.

Speaker 2: Maybe Jack, you could give a little bit more specificity on some of the US business trends. Sure, be happy too. So Josh, I would say on the US and the manpower side, we did see slight improvement. So talking days adjusted, I think let's remember that days adjusted decreased for manpower in Q2 was minus 19%. So quite a significant drop at that point. And that improved to minus 16%.

We did see slight improvement.

We're talking days adjusted I think let's remember the days adjusted decrease for manpower in Q2 was minus 19% so quite a significant drop at that point and that improved to minus 16% in Q3.

Speaker 2: in the Q3 and we expect that to see some slight improvement in that trend. So that being said, still a pretty difficult operating environment, right?

And we expect that to see some slight improvement in that trend. So that being said, it's still a pretty difficult operating environment right and then on the on experience.

Speaker 2: And then on an on experience, you know, very, very similar. So in Q2 days adjusted, we talked about being down minus 17%.

Very very similar so in Q2 days, adjusted we talked about being down minus 17% that improved slightly to the minus 15% days adjusted into Q3 and our outlook there is.

Speaker 2: that improves slightly to the minus 15% days adjusted into Q3 and our outlook there is, you know, slight improvement in the Q4. And similar to what Jonas said, what that really means is when you consider, you know, the year ago period, we're seeing, you know,

Light improvement into Q4, and similar to what you own as said what what that really means is when you consider the year ago period, we're seeing.

Speaker 2: kind of stable levels of activity going into the fourth quarter. So I would say still cautious. We are, you know, we are a bit cautious that the traditional ramp that you typically see in October and November may not materialize this year, just based on, you know, continuation of the sluggish trends we've seen in the enterprise sector earlier in the year.

Stable levels of activity going into the fourth quarter, So I would say still cautious.

We are a bit cautious that the traditional ramp that you typically see in October and November may not materialize. This year, just based on continuation of the sluggish trends we've seen in the enterprise sector earlier in the year, but with that being said as we anniversary. The prior period I think the rate will show some.

Speaker 2: So with that being said, as we anniversary of the prior period, I think the rate will show some flight improvement on a year over your basis. And as you said, I think on the Town Solutions side, which...

Slight improvement on a year over year basis, and as <unk> said I think on the talent solutions side, which is the biggest talent solutions has the biggest impact globally in the U S.

Speaker 2: is the biggest town solutions has the biggest impact globally in the US.

Speaker 2: We we saw stability in our PMSP and right management in the US.

We saw stability in our MSP and right management in the U S. From Q2 to Q3, I talked about a bit of the normalization of Perm, we do expect perm to continue to come off a bit but it won't come off at the same degree that it came off more significantly in the previous quarters. So we see it kind of stability.

Speaker 2: from Q2 to Q3. I talked about a bit of the normalization of PURM. We do expect PURM to continue to come off a bit, but it won't come off at the same degree that it came off more significantly in the previous quarters. So we see the kind of stability and that at those lower levels into the fourth.

City and that at those lower levels into the fourth quarter.

Speaker 7: That's really good color, thank you for that. And kind of taking backing on your last comment, Jack, on the perm coming off, I guess, obviously that's impacting your gross margin now, but it does sound like that there could be some sequential stability, so I guess how are you thinking about perm going forward? And then specifically, does that 70 basis points of gross margin headwind become kind of a peak impact, or maximum impact, if you will, going forward? How are you thinking about this?

Okay. That's really good color. Thank you for that and kind of picking piggybacking on the last comment Jack on the Perm coming off I guess.

Obviously, that's impacting our gross margin now, but it does sound like that there.

There could be some sequential stability. So I guess, how are you thinking about <unk> going forward and then specifically does that 70 basis points of gross margin headwind become kind of a peak impact our maximum impact if you will going forward how are you thinking about that.

Speaker 2: Yeah, you know, I'd say, you know, it's a fair question. It really is hard to say whether that 70 is going to be kind of the peak. I will tell you sequentially Q3 to Q4. We're looking at, you know, GP margin going from 17.6 to 17.4 at the midpoint. So fairly close.

Yes, I'd say, it's a fair question. It really is hard to say whether that 70 is going to be kind of the peak I will tell you sequentially Q3 to Q4.

We're looking at GP margin going from 17, 6% to $17 four at the midpoint so fairly close.

Speaker 2: You know, we are starting to anniversary, you know, some of the drop in perm that we saw in the second half of last year. So I'd say, you know, it will be, you should expect that it will likely be a lower impact on the year over year change as we start to anniversary those lower levels.

We are starting to anniversary.

Some of the some of the drop in Perm that we saw in the second half of last year, So I would say.

It will be you should expect that it will likely be a lower impact on the year over year change as we start to anniversary those lower levels.

Speaker 2: And we'll just have to see how that continues. But I would say it does feel like we've normalized quite a bit recently. And we're anticipating that into the fourth quarter guide with GP margins still holding up fairly good sequentially. Great. Thank you.

And we'll just have to see how that continues but I would say it does feel like we've we've normalized quite a bit recently and we are anticipating.

That into the fourth quarter guide with GP margin still holding up fairly good.

Sequentially.

Great. Thank you. Thank you both for your time.

Okay.

Speaker 8: Thank you. And our next question comes from George Tongue with Goldman Sachs. Your line is open. Hi, thanks. Good morning. You noted demand from enterprise technology clients continue to be subdued in the quarter. Can you elaborate on where you're seeing the weakness and tech and how tech-stabbing trends performed over the course of the quarter and in October today?

Thanks Ann.

Our next question comes from George Tong with Goldman Sachs. Your line is open.

Alright, thanks, good morning.

You noted demand from enterprise technology clients continued to be subdued in the quarter can you elaborate on where you're seeing the weakness in tech and how tech staffing trends performed over the course of the quarter and in October to date.

Speaker 5: Overall, George, I'd say that the demand continued to be quite weak, both in the US and in Europe . And I think it's in terms of industry verticals that are big, especially for experience globally and also here in the US. It was the tech and the communications industries that they were, the telcos, they're the ones that have seen the biggest drop.

Overall, George I'd say that the demand.

Continue to be quite weak both in the U S and in Europe and.

I think his term in terms of industry verticals that are big especially for experience globally and also here in the U S. It.

It was a tech and communications industries that they were the telcos. They are the ones that have seen the biggest drops.

Speaker 5: I would say, as you heard from our prior remarks here, we think the things have stabilized sequentially, but at a low level, and they seem to be holding steady at least for now. And so that's what we're seeing. And we have strength in other verticals, but they are the ones that are driving the significant decline.

I would say as you heard from our prior remarks here, we think the act if things have stabilized sequentially, but at a low level and they.

They seem to be holding steady at least for now and so thats what were seeing and we have that strength.

In other verticals, but they are the ones that are driving the significant declines.

Speaker 5: for all of our brands, but in particular for experienced at a global and at a US level.

For all of our brands, but in particular for <unk> at a global and as the U S level.

Speaker 2: George, I guess I would just add, I know you like to know about a little color on some of the other verticals and some of the others on the call as well. Maybe this is a good time to maybe talk.

And George I guess I would just add I know I know you like to know about a little color on some of the other verticals and some of the others on the call as well. So maybe this is a good time to maybe talk a little bit about that so to <unk> point enterprise Tech has been some of the more significant.

Speaker 2: a little bit about that. So, Tionis' point, Enterprise Tech, has been some of the more significant the sector probably with the most significant pressure during the year on overall basis.

Sector, probably with the most significant pressure during the year on an overall basis I would say other areas on the weaker side.

Speaker 2: I would say other areas on the weaker side, you know, we've talked about logistics being soft, you know, most of the year that continues.

We've talked about logistics being soft most of the year that continues.

Speaker 2: I'd say on the manufacturing side, outside of auto and food manufacturing continues to be very sluggish. You can see that. We talked about that in terms of manufacturing PMIs in our prepared remarks.

I'd say.

On the manufacturing side outside of auto and food manufacturing continues to be very sluggish you can see that we've talked about that in terms of manufacturing PMI in our prepared remarks.

Speaker 2: And then I'd say construction, which is really more relevant to our European business and Norway and France has been weaker as well.

And then I'd say construction, which is really more relevant to our European business in Norway, and France has been has been weaker as well.

Speaker 2: And I would say more recently, we've seen banking. So banking was strong, was relatively flatish, and I'm talking more of the US market now in the first half of the year. And we're starting to see banks pull back a bit more now as we end the third quarter. So we see banks kind of reacting to the current environment.

And I would say more recently, we've seen banking. So banking was strong was relatively flattish and I'm talking more of the U S market now in the first half of the year and we're starting to see banks pull back a bit more now.

As we end the third quarter. So we see banks kind of reacting to the current environment currently I would say on the on the flip side.

Speaker 2: currently I'd say on the flip side Auto continues to be strong you certainly see that on our Germany numbers that is an area of strength that continues in France and Sweden as well I mentioned food and I would say the public sector Has generally been more resilient on an overall basis although that is softened a little bit in the UK in the third quarter So a little more color in terms of what we're seeing in terms of the industry verticals on an overall

<unk> continues to be strong, we certainly see that in our Germany numbers that is an area of strength that continues in France, and Sweden, as well I mentioned food and I would say the public sector has generally been more resilient on an overall basis, although that has softened a little bit in the U K in the third quarter, So a little more.

Color in terms of what we're seeing in terms of the industry verticals on an overall basis.

Speaker 8: That's very helpful. Thank you. And then to follow up, every cycle, as you know, has its own unique characteristics in terms of the way down and the way up, how do you expect the current macro slow down and subsequent recovery to compare with prior cycles in terms of depth and also in terms of duration?

That's very helpful. Thank you.

And then to follow up every cycle as you know has its own unique characteristics in terms of the way down and the way up.

Do you expect the current macro slowdown and subsequent recovery to compare with prior cycles in terms of depth and also in terms of duration.

Speaker 5: I think if I knew the depth then it'd be easy, but we don't, so we manage through the uncertainty like everybody else. But I would say largely, the way this economic slowdown is playing out in our industry is roughly what we have seen in prior economic cycles.

Well, George I think if I knew the depths than than it would be easy, but we don't so we manage through the uncertainty like everybody else.

But I would say largely this the way this economic slowdown this playing out in our industry is roughly what we have seen in prior economic cycles with the difference being some delays and some sequencing we talked about the step down of Perm.

Speaker 5: With the difference being some delays and some sequencing, you know, we talked about, you know, the step down of perm, you know, in the second quarter coming into the third quarter where that is normally something we would see a little bit earlier, we would see, you know, maybe commercial staffing started to climb a little bit earlier and that, you know, IT staffing and professional staffing would hold on a little bit longer due to the length of the projects and the higher skill sets. And that's been a little bit reverse.

In the second quarter coming into the third quarter, where that is normally something we would see a little bit earlier, we would see maybe commercial staffing start to decline a little bit earlier than that.

Staffing and professional staffing would hold on a little bit longer due to the length of the projects on the higher skill set so that's been a little bit reversed, but a lot of these.

Speaker 5: But a lot of these, you know, differences in timings we think can be largely explained.

Differences in timing, we think can be largely explained by pandemic and post pandemic.

Speaker 5: by pandemic and post-pandemic anomalies, frankly, that are, as we go through this economic cycle, seem to be coming back towards trend.

Anomalies frankly that are as we go through this economic cycle.

See seem to be coming back towards trend. So overall, we would expect this to play out in a recovery in the same way that we've seen in the past companies will get some confidence into the future, but not enough to really start their permanent hiring in this.

Speaker 12: So overall we would expect this to play out in a recovery in the same way that we've seen in the past. Companies will get some confidence into the future, but not enough to really start their permanent hiring in a significant way. That means we'll see commercial staffing start to pick up, IT projects and others for experienced pick up.

Significant way that means we will see coma, social staffing start to pick up a project and others for experienced pick up.

Speaker 12: you know, RPO and PERM start to pick up because a lot of the talent acquisition activities have been changed in the client companies. And then, you know, we would see it start like that. The one thing, George, that I think we will have to get used to, which in our terms is a positive effect in terms of demand.

IPO in Perm start to pick up because a lot of the talent acquisition activities have been have been.

I have been changed in the client companies and then we.

Would see it start like that the one thing George is that I think we will have to get used to which in our terms is a positive effect in terms of demand.

Speaker 5: is more structurally constrained labor markets overall in many, many skill sets, and not just the highest skill sets, but also broadly due to the changing demographics and the aging population, you know, we think access to human capital is going to become more difficult, which means customers and companies will rely more on us and all of our brands.

Is more structurally constrained labor markets overall.

In many many skill set so not just the highest skill sets, but also broadly due to the changing demographics the aging population.

I think access to human capital is going to become.

More difficult, which means customer version companies will rely more on us and all of our brands to attract and retain the talent both on a contingent as well as on the permanent on apartment in basis, and we look at our staffing margins that we have today across the board.

Speaker 5: to attract and retain the talent, both on a contingent as well as on a permanent basis. And we look at our staffing margins that we have today across the board and how well they're holding up. And that is different from what we've seen in other cycles.

And how well, they're holding up and that is.

Different from what we've seen in other cycles, and we would hope that based on the structural trends that we're seeing demographically and the demand for new skill set driven by technological changes at all skill levels, frankly, but that will give us further support for some good.

Speaker 5: And we would hope that based on the structural trends that we're seeing demographically and the demand for new skill sets driven by technological changes at all skill levels, frankly, but that will give us further support for some good margin evolution, staffing margin and total margin as a whole.

Good margin evolution staffing margin and total margin as a whole.

Very helpful. Thank you.

Speaker 1: Thanks, George. Thank you. Our next question comes from Cartagmata with North Coast Research. Your line is open. Thank you so much.

Thanks, Joe.

Our next question comes from Kartik Mehta with Northcoast Research Your line is open.

Kartik Mehta your line is open.

Youre on mute Kartik.

Speaker 2: Maybe we'll come back to the car tech. He might be having difficulty.

Maybe it will come back after kartik he might be having difficulty.

Speaker 1: Our next question comes from Manav Patnik with Barclays. Your line is open.

Our next question comes from Manav Patnaik with Barclays. Your line is open.

Speaker 9: Hi Jack, hi Jonas, this is Prince Thomas on Firmano. Last quarter you mentioned some mixed related changes around rebalancing your client mix, specifically in Indian Australia, and that you were seeing good profitability levels in those markets. Can you give us an update and expand on your progress there and how this impacts your exposures and revenue margin impacts from these mixed changes?

Hi, Jack Hi, Joanna this is Thomas on for Manav.

Last quarter, you mentioned some mix related changes around rebalancing your client mix, specifically in India, and Australia and that you were seeing good profitability levels in those markets can you give us an update and expand on your progress there.

And how this impacts your exposures and revenue margin impact from these mix changes.

Speaker 2: Sure, Prensy. I think the main takeaway is there wasn't really a lot of dramatic changes in Q3. I think you're right. That's been an ongoing adjustment. We've been making in certain key markets. India certainly is a very important market for us.

Sure.

Thank the main takeaway is there wasn't really a lot of dramatic changes in Q3, I think you're right. That's been an ongoing adjustment we've been making in certain key markets, India certainly has a very important market for us.

Speaker 2: But it's a tough margin market. So as a result of that, we want to make sure we're taking on the right business that's accretive to the organizational overall. And we're making really good progress in that regard. So the business has been doing a really nice job repositioning the business this year. And we feel good about that. And I'd say that continued on in Q3 as expected.

But it's a tough margin market. So as a result of that we wanted to make sure. We're taking on the right business that's accretive to the organization overall, and we're making really good progress in that regard. So the business has been doing a really nice job repositioning the business. This year and we feel good about that and I would say that continued on in Q3 as.

Speaker 2: I'd say, you know, the other country that we've talked a lot about in the past has been the UK and another tough margin market on an overall basis. We have a lot of tremendous experience operating in that market and we've done a really nice job repositioning the margin profile of that business as well. So despite the very difficult conditions and you saw the

<unk>.

I'd say the.

The other country that we've talked a lot about in the past has been the U K and another tough.

<unk> market on an overall basis, we have a lot of tremendous experience operating in that market and we've done a really nice job repositioning the margin profile of that business as well so despite the very difficult conditions and you saw the.

Speaker 2: the trends for the UK. So definitely on the higher side of pressure that we've seen, they're actually operating quite well in that environment and doing a really nice job preserving operating unit profit margins. So...

The trends for the U K, so definitely on the higher side of pressure.

That we've seen they are actually operating quite well in that environment and doing a really nice job preserving operating unit profit margin. So I'd say those are two examples that we probably talked a little bit more about and I would say continued.

Speaker 2: I'd say those are two examples that we probably have talked a little bit more about and I'd say continued on.