In the third quarter, revenue was $4.6 billion, down 14.5% year-over-year in constant currency.
On a same day organic basis, our underlying constant currency revenue decreased 15%, a significant improvement from the 27% decline in the second quarter on the same basis.
On a reported basis, we recorded an operating profit for the quarter of $62 million.
Excluding restructuring charges and a special item consisting of impacts from divesting select small country operations, operating profit was $117 million, down 38% in constant currency, excluding the prior year special item.
Reported operating profit margin was 1.3%, down 280 basis points from the prior year and, after excluding the restructuring and other special items, operating profit margin was 2.6%, down 100 basis points from the prior year.
Reported earnings per diluted share of $0.18 reflects the impact of restructuring charges, the loss on dispositions and a discrete tax item.
Excluding the restructuring and other special items, our earnings per diluted share was $1.20 for the quarter representing a decrease of 39% in constant currency.
Earlier this year we asked more than 30,000 employers across 40 plus countries when they predicted hiring would return to pre-pandemic levels.
The same survey we conducted three months later shows that 60% now think it will take even longer, toward the end of '21, the much talked about U shaped recovery.
One of our main innovation initiatives is our MyPath program which is now scaling to 14 markets this year and next across both our Manpower and Experis brands.
We have also upskilled more than 2,000 of our own Talent Agents to be expert in assessment and data-driven recruitment and continue to improve on reassignment rates, improved utilization rates and increased satisfaction levels with those clients and candidates that engage in MyPath.
We also continue to invest in our Center of Excellence in People Analytics and Assessment, led by our Chief Talent and Data Scientist and a 40 plus strong global innovation team.
On a reported basis, our operating profit was $62 million.
Excluding special items consisting of restructuring charges and a loss on dispositions, our operating profit was $117 million, representing a decline of 37%, or a decline of 38% on a constant currency basis.
This resulted in an operating profit margin of 2.6% before restructuring charges and other special items, which was above the high end of our guidance.
Breaking our revenue trend down into a bit more detail, after adjusting for the positive impact of currency of about 2%, our constant currency revenue declined 14.5%.
The impact of acquisitions and billing days were minor resulting in an organic days adjusted revenue decrease of 15%.
This represented a significant improvement from the second quarter revenue decline of 27% on a similar basis.
On a reported basis, earnings per share was $0.18, which included the restructuring charges of $50 million which represented a negative $0.72, certain discrete tax charges of $12 million and a loss from dispositions of $6 million which combined had a $0.30 negative impact.
Excluding the restructuring and other special items, earnings per share was $1.20, which exceeded our guidance range.
Included within this result was improved operational performance of $0.47, $0.03 on better than expected foreign currency exchange rates before restructuring and other special items, $0.04 on an improved effective tax rate and $0.03 on improved interest and other expenses.
Our gross margin came in at 15.8%.
Underlying staffing margin contributed to a 20 basis points reduction and a lower contribution from permanent recruitment contributed to a 30 basis point reduction.
This was offset by 20 basis points of increased gross profit margin from career transition growth within Right Management.
Other and accrual adjustments include about 20 basis points of favorable direct cost adjustments in France partially offset by decreased margin in our Proservia managed services business.
During the quarter, the Manpower brand comprised 65% of gross profit, our Experis professional business comprised 20%, and Talent Solutions brand comprised 15%.
During the quarter, our Manpower brand reported an organic constant currency gross profit decrease of 17%.
This was a significant improvement from the 37% decline in the second quarter.
Gross profit in our Experis brand declined 19% year-over-year during the quarter on an organic constant currency basis which represented a slight improvement from the 20% decline in the second quarter.
Organic gross profit growth in the quarter decreased 2% in constant currency year-over-year which is a significant improvement from the 12% decline in the second quarter.
Our reported SG&A expense in the quarter was $664 million including the restructuring charges of $50 million and the loss on dispositions of $6 million.
Excluding the special items, SG&A of $608 million represented a decrease of $46 million from the prior year after excluding the prior year gain on the China IPO.
This underlying decrease was driven by $60 million of operational cost reductions offset by an increase of $12 million from currency changes and $2 million from acquisitions.
On an organic constant currency basis, excluding special items, SG&A expenses decreased 9% year-over-year.
SG&A expenses as a percentage of revenue in the quarter represented 13.3%, excluding restructuring and other special items, which continued to reflect the significant deleveraging on the material drop in revenues year-over-year.
The Americas segment comprised 20% of consolidated revenue.
Revenue in the quarter was $929 million, a decrease of 11% in constant currency.
Including restructuring costs, OUP equaled $32 million and OUP margin was 3.4%.
Excluding restructuring costs, OUP was $48 million and OUP margin was 5.2%.
Of the $17 million of restructuring costs, $15 million related to the US primarily representing the closure of real estate as we eliminate fixed costs based on accelerated digitization activities.
The US is the largest country in the Americas segment, comprising 62% of segment revenues.
Revenue in the US was $579 million, representing a decrease of 13% compared to the prior year.
Adjusting for billing days and franchise acquisitions, this represented a 16% decrease which is an improvement from the 23% decline in the second quarter.
During the quarter, OUP for our US business decreased 14% to $34 million, excluding restructuring charges.
OUP margin was 5.9%, excluding restructuring charges, and reflected the benefit of higher margin career transition activity within Right Management.
Within the US, the Manpower brand comprised 33% of gross profit during the quarter.
Revenue for the Manpower brand in the US was down 21% when adjusted for days and franchise acquisitions.
The Experis brand in the US comprised 30% of gross profit in the quarter.
Within Experis in the US, IT skills comprise approximately 80% of revenues.
Revenues within our IT vertical within Experis US declined 15% during the quarter and total Experis US revenues declined 16.5% as the Finance and Engineering verticals experienced more significant decreases.
Talent Solutions in the US contributed 37% of gross profit and experienced revenue growth of 7% in the quarter.
Within Right Management in the US, revenues increased 30% year-over-year driven by significant career transition activity during the quarter.
Provided there are no significant reversals of reopening activity across the US, in the fourth quarter we expect ongoing improvement and an overall rate of decline in the US of minus 8% to minus 13%.
Our Mexico operation experienced a revenue decline of 9% in constant currency in the quarter representing a slight improvement from the 10% decline in the second quarter.
Revenue in Canada declined 10% in constant currency during the quarter.
Adjusting for billing days, this represented a 11% decrease which was a further decrease from the second quarter and reflected the exit of certain lower margin enterprise clients during the quarter.
Revenue in the Other Countries within Americas declined 6% in constant currency.
Southern Europe revenue comprised 46% of consolidated revenue in the quarter.
Revenue in Southern Europe came in at $2.1 billion, a decrease of 15% in constant currency.
OUP including restructuring costs and the loss on dispositions equaled $72 million.
Excluding restructuring costs and the loss on dispositions, OUP decreased 30% from the prior year in constant currency and OUP margin was down 90 basis points.
Of the $8 million of restructuring costs in the region, just under half relates to Spain for real estate optimization and streamlining of operations, about a quarter relates to Italy for real estate optimization, about 20% relates to Switzerland for real estate optimization and the small remaining balance related to streamlining in other Southern Europe countries.
France revenue comprised 57% of the Southern Europe segment in the quarter and was down 17% from the prior year in constant currency.
OUP was $51 million in the quarter and OUP margin represented 4.3%.
As I mentioned earlier, France benefited from direct cost accrual adjustments in the quarter which improved their OUP by approximately $10 million.
We are cautiously estimating a gradual improvement in the rate of decline for the fourth quarter of between minus 10% to minus 15% on a constant currency basis.
Revenue in Italy equaled $351 million in the quarter representing a decrease of 12% in constant currency after adjusting for billing days.
Excluding restructuring charges, OUP declined 29% year-over-year in constant currency to $17 million and OUP margin decreased 130 basis points to 4.9%.
We estimate that Italy will continue to see gradual improvement in the rate of revenue decline during the fourth quarter with a decline within a range of minus 7% to minus 12%.
Revenue in Spain decreased 6% on a days-adjusted constant currency basis from the prior year in the quarter.
This represents a significant improvement from the 13% decrease in the second quarter.
Revenue in Switzerland decreased 13% on a days-adjusted constant currency basis from the prior year in the quarter.
This represents a significant improvement from the 19% decrease in the second quarter.
Our Northern Europe segment comprised 21% of consolidated revenue in the quarter.
Revenue declined 22% in constant currency to $948 million.
OUP including restructuring costs represented a loss of $23 million.
Excluding restructuring costs, OUP was $2 million and OUP margin was 20 basis points.
Of the $24 million of restructuring costs, two-thirds relates to Germany where we have streamlined our operations, notably within our Proservia business, and have taken additional actions to reduce finance and shared services back office costs, about a quarter related to the Netherlands where we have streamlined our operations, and the balance relates to the UK and Sweden where we have also streamlined operations.
Our largest market in the Northern Europe segment is the UK, which represented 34% of segment revenue in the quarter.
During the quarter, UK revenues decreased 22% in constant currency which was unchanged from the second quarter trend.
In Germany, revenues declined 32% on a constant currency adjusted for billing days basis in the third quarter which was unchanged from the second quarter trend.
In the Nordics, revenues declined 15% on a days-adjusted constant currency basis.
On a days-adjusted constant currency basis, Norway experienced a decline of 11% and Sweden declined 21%.
Revenue in the Netherlands decreased 23% in constant currency which represents a very slight improvement from the second quarter trend on a days-adjusted basis.
Belgium experienced a days-adjusted revenue decline of 29% in constant currency during the quarter which reflects significant improvement from the second quarter trend.
Other Markets in Northern Europe had a revenue decrease of 5% in constant currency.
The Asia Pacific Middle East segment comprises 13% of total company revenue.
In the quarter, revenue decreased 6% in constant currency to $596 million.
Excluding restructuring charges and prior year gain on the China IPO, OUP margin decreased 90 basis points.
All of the $1.5 million of restructuring costs involve Australia where we continue to simplify the business after exiting certain low margin staffing clients.
Revenue growth in Japan was up 5% on a constant currency basis and, after adjusting for billing days, this represented a 6% growth rate which was equal to the growth rate in the second quarter.
Revenues in Australia declined 7% in constant currency on a days adjusted basis.
This represented a significant improvement from the 21% decline in the second quarter as we anniversaried the exiting of certain low margin business.
Revenue in Other Markets in Asia Pacific Middle East declined 10% in constant currency.
Free cash flow equaled $685 million for the first nine months of the year.
This compared to underlying free cash flow in the prior year of $356 million after excluding the sale of the France CICE receivable.
During the third quarter, free cash flow equaled $108 million compared to $206 million in the prior year quarter.
Capital expenditures represented $31 million during the first nine months of the year.
We did not purchase any shares of stock during the third quarter and our year-to-date purchases stand at 871,000 shares of stock for $64 million.
As of September 30, we have 5.9 million shares remaining for repurchase under the 6 million share program approved in August of 2019.
Our balance sheet was strong at quarter-end with cash of $1.59 billion and total debt of $1.09 billion, resulting in a net cash position of $500 million.
Our debt ratios remain comfortable at quarter-end with total gross debt to trailing 12 months EBITDA of 2.21 times and total debt to total capitalization at 29%.
In addition, our revolving credit facility for $600 million remained unused.
On that basis, we are forecasting earnings per share for the fourth quarter to be in the range of $1.06 to $1.14, which includes a favorable impact from foreign currency of $0.03 per share.
Our constant currency revenue guidance range is between a decline of 10% to a decline of 12%.
The mid-point of our constant currency guidance, a decline of 11%, also reflects the organic days-adjusted rate of decline as billing days for Q4 are only very slightly higher year-over-year and the impact of net dispositions is also very slight.
This represents an improvement of about 4% from the organic days adjusted constant currency decline of 15% in the third quarter.
We expect our operating profit margin during the fourth quarter to be down 130 basis points compared to the prior year.
We expect our income tax rate in the fourth quarter to approximate 39% which continues to reflect an outsized impact of the French Business Tax effect that I discussed in previous quarters.
France is planning to reduce the French Business Tax, known as CVAE, by 50% in 2021.
If the budget is approved as drafted, this would improve our pre-crisis level global effective tax rate by 3% to 3.5%.
Additionally, France has indicated that they will continue with their multi-year corporate tax reform schedule which is expected to separately reduce the France corporate tax rate by about 3% next year and the impact to the consolidated effective tax rate is a reduction between 50 and 75 basis points.
As usual, our guidance does not incorporate restructuring charges or additional share repurchases and we estimate our weighted average shares to be 58.6 million.

Summary:
Revenue in Canada declined 10% in constant currency during the quarter.
Our constant currency revenue guidance range is between a decline of 10% to a decline of 12%.