Daily News
View All NewsKelly Services revenue up 4% in second quarter; company cites growth in Europe
Second-quarter revenue at Kelly Services (NASD: KELYA) rose 4.0% with strong growth in Europe. The increase in constant currency was 3.0%. Revenue rose in the company’s Americas staffing and international staffing segments, but fell in its global talent solutions segment, which includes the company’s MSP and RPO business lines.
Kelly Services noted Americas revenue reflects the September 2017 acquisition of education staffing firm Teachers on Call.
| (US$ millions) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Revenue | $1,386.9 | $1,333.6 | 4.0% | 3.0% |
| Gross profit | $240.5 | $228.8 | 5.1% | |
| Gross margin | 17.3% | 17.2% | ||
| Net earnings | ($15.4) | $18.7 | nm |
The company noted a $52.5 million noncash loss on its investment in Japan-based staffing provider Persol Holdings.
Revenue by segment
| (US$ millions) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Americas staffing | $604.0 | $575.6 | 4.9% | 5.2% |
| Global talent solutions | $500.7 | $505.5 | -0.9% | -1.2% |
| International staffing | $286.6 | $256.8 | 11.6% | 6.6% |
Second-quarter gross margin was 18.0% in the Americas staffing segment, flat compared to last year. Global talent solutions gross margin rose to 18.5% in the second quarter from 17.5% in the year-ago quarter. International staffing gross margin fell to 13.9% from 14.3% in the same quarter last year.
Revenue by geography
| (US$ millions) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Americas | ||||
| United States | $981.2 | $970.1 | 1.1% | 1.1% |
| Canada | $37.0 | $34.6 | 6.8% | 2.6% |
| Mexico | $30.0 | $28.3 | 6.2% | 11.4% |
| Puerto Rico | $26.2 | $17.6 | 49.0% | 49.0% |
| Brazil | $9.0 | $12.7 | -29.1% | -22.6% |
| Europe, Middle East and Africa | ||||
| France | $72.0 | $68.3 | 5.2% | -2.6% |
| Switzerland | $52.8 | $53.9 | -2.0% | -1.7% |
| Portugal | $51.2 | $41.7 | 23.1% | 13.6% |
| United Kingdom | $28.5 | $20.8 | 37.0% | 28.9% |
| Russia | $25.6 | $24.0 | 6.5% | 15.4% |
| Italy | $19.3 | $15.7 | 23.0% | 14.4% |
| Germany | $14.8 | $14.6 | 0.5% | -7.2% |
| Ireland | $11.7 | $7.4 | 58.4% | 46.4% |
| Norway | $9.2 | $8.4 | 10.4% | 4.3% |
| Other EMEA | $12.8 | $11.0 | 16.0% | 8.1% |
| Asia Pacific | ||||
| Total APAC | $5.6 | $4.5 | 24.2% | 23.0% |
Guidance
The company expects third-quarter revenue to be up 2% to 3% year over year.
Share price and market cap
Shares in Kelly Services were up 1.56% to $24.76 at 1:50 p.m. Eastern time. The company had a market cap of $953.0 million.