DOW JONES NEWSWIRES 
 

Manpower Inc.'s (MAN) first-quarter net income slid 97% as a European slump and a reorganization charge hurt results.

However, Chairman and Chief Executive Jeffrey A. Joerres said the U.S. and French markets experienced "revenue stability over the last five weeks" - the longest such string in the U.S. in four quarters. He predicted the company would maintain profitability in the second quarter.

The results were better than expected. In February, Manpower warned it would post a first-quarter loss because of sharply declining sales.

Times have been tough for companies like Manpower, the world's No. 2 staffing agency by sales behind Adecco SA (ADEN.VX), as jobless rates have soared around the globe. Companies are hestitating to hire amid weak demand, and temporary workers are the first to be axed as businesses cut costs.

Manpower posted net income of $2.3 million, or 3 cents a share, down from $75.5 million, or 94 cents a share, a year earlier. The most recent results included a 6-cent reorganization charge.

Revenue decreased 32% to $3.65 billion. On a constant currency basis, revenue fell 22%.

The latest average of analysts surveyed by Thomson Reuters was for an 8-cent loss and revenue of $4.03 billion.

Gross margin ticked up to 18.4% from 18%.

Manpower's U.S. profit fell 40% on a 21% revenue drop. Europe, the Middle East and Africa saw profit slide 77% on a 34% revenue drop. Two-thirds of Manpower's revenue comes from Europe, with one-third from France alone.

Manpower shares closed at $34.26 Monday and haven't traded premarket. They've lost 47% the past year, but have rebounded some 50% the past six weeks.

-By Joan E. Solsman and Mike Barris, Dow Jones Newswires; 201-938-5500; joan.solsman@dowjones.com