TrueBlue Inc. (NYSE: TBI) revenue fell 2.4% in the first quarter with declines in its PeopleManagement and PeopleReady segments. The decline at PeopleManagement was attributed to the sale of PlaneTechs and client demand, which declined at several locations. The decline at PeopleReady was mainly attributable to weakness in revenue from clients in the manufacturing, construction and energy businesses.

However, revenue rose in the PeopleScout segment, which includes RPO and MSP business lines.

Revenue by segment

TrueBlue also announced the sale of its PlaneTechs business to Launch Technical Workforce Solutions for $11.4 million, of which $8.5 million was in cash and $1.6 million in a note due within six months. The remaining balance consists of the preliminary working capital adjustment to be paid in cash during the fiscal second quarter of 2018. PlaneTechs provides temporary skilled mechanics and technicians for aircraft maintenance, repair, overall and manufacturing companies in the aviation sector. The deal was effective March 12.

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“While revenue was down modestly, growth in our PeopleScout business accelerated to over 20%, and we are taking the right actions to return the PeopleReady business to growth,” CEO Steve Cooper said. “Programs to reduce the cost of services are working, resulting in our ninth consecutive quarter of gross margin expansion and a 3% increase in gross profit for the quarter.”

Guidance

TrueBlue estimates second-quarter revenue to range from $585 million to $600 million, a year-over-year decline of 1.7% to 4.1%.

Share price and market cap

Shares in TrueBlue fell 9.57% to $24.10 as of 12:51 p.m. Eastern time. The company had a market cap of $957.09 million.