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View All NewsKelly Q1 revenue rises 4% in constant currency
Kelly Services Inc. (NASD: KELYA), the seventh-largest global staffing firm, reported revenue rose 4.4% in constant currency in the first quarter to $1.32 billion. However, revenue edged down 0.8% overall.
Net earnings at the Troy, Mich.-based staffing provider rose 48.3% to $3.7 million.
| (US$ millions) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Revenue | $1,320.6 | $1,330.8 | -0.8% | 4.4% |
| Gross profit | $220.3 | $222.3 | -0.9% | 3.8% |
| Gross margin | 16.7% | 16.7% | ||
| Net earnings | $3.7 | $2.5 | 48.3% |
Quote
“We’re pleased with Kelly’s overall performance and our ability to double operating earnings over the same period last year,” said President and CEO Carl Camden. “Our US local markets are off to a strong start in 2015, and our expanded PT sales and recruiting teams are showing the solid growth we expected from our 2014 investments. In addition, our continued success in our OCG segment reflects our ability to help some of the world's largest companies design and deliver more holistic solutions for acquiring and managing their talent.”
Revenue by segment
| (US$ millions) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Americas Commercial | $641.4 | $613.2 | 4.6% | 6.2% |
| Americas Professional & Technical | $232.8 | $236.4 | -1.5% | -1.1% |
| EMEA Commerical | $178.3 | $221.9 | -19.7% | -1.8% |
| EMEA Professional & Technical | $40.3 | $47.7 | -15.4% | 2.2% |
| APAC Commerical | $85.6 | $83.0 | 3.2% | 12.5% |
| APAC Professional & Technical | $10.5 | $8.6 | 22.1% | 34.1% |
| OCG* | $149.5 | $134.4 | 11.2% | 12.6% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) includes recruitment process outsourcing (RPO), contingent workforce outsourcing (CWO), business process outsourcing (BPO), payroll process outsourcing (PPO), executive placement and outplacement.
Revenue by geography
| (US$ millions) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Americas | ||||
| United States | $883.0 | $839.9 | 5.1% | 5.1% |
| Canada | $42.7 | $46.7 | -8.6% | 2.3% |
| Mexico | $31.9 | $30.7 | 4.1% | 17.6% |
| Puerto Rico | $24.8 | $25.1 | -0.8% | -0.8% |
| Brazil | $13.9 | $15.9 | -12.5% | -1.0% |
| Europe, Middle East and Africa | ||||
| France | $56.4 | $62.8 | -10.3% | 8.7% |
| Switzerland | $48.1 | $62.3 | -22.7% | -17.4% |
| Portugal | $31.3 | $26.6 | 17.8% | 43.2% |
| United Kingdom | $23.6 | $27.8 | -15.2% | -7.5% |
| Russia | $18.2 | $34.9 | -47.9% | -6.6% |
| Germany | $13.4 | $16.7 | -19.7% | -3.0% |
| Italy | $12.5 | $14.9 | -15.7% | 2.4% |
| Norway | $9.4 | $14.4 | -34.8% | -17.1% |
| Other EMEA | $11.0 | $17.1 | -35.6% | -21.8% |
| Asia Pacific | ||||
| Singapore | $31.3 | $30.3 | 3.2% | 10.2% |
| Australia | $30.4 | $26.5 | 14.9% | 31.0% |
| Malaysia | $15.5 | $16.5 | -6.7% | 2.3% |
| New Zealand | $10.5 | $12.3 | -14.7% | -5.2% |
| Other Asia Pacific | $12.7 | $9.4 | 35.0% | 36.7% |
Gross margin by segment
| Q1 2015 | Q1 2014 | |
| Americas Commercial | 15.3% | 15.0% |
| Americas Professional & Technical | 16.7% | 16.8% |
| EMEA Commerical | 13.8% | 14.8% |
| EMEA Professional & Technical | 21.5% | 23.3% |
| APAC Commerical | 15.2% | 14.8% |
| APAC Professional & Technical | 27.5% | 32.0% |
| OCG* | 23.8% | 24.3% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) includes recruitment process outsourcing (RPO), contingent workforce outsourcing (CWO), business process outsourcing (BPO), payroll process outsourcing (PPO), executive placement and outplacement.
Share price and market cap
Kelly Services shares fell 2.30% to $16.36 in early afternoon trading. The company had a market cap of $617.0 million, according to Yahoo!