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View All NewsKelly Q2 revenue rises 4% in constant currency
Kelly Services Inc. (NASD: KELYA), the seventh-largest global staffing firm, reported second-quarter revenue rose 3.9% in constant currency despite falling 1.8% on a non-constant currency basis.
Net earnings at the Troy, Mich.-based staffing provider jumped to $6.8 million from $2.8 million in the same quarter year prior, which included restructuring charges of $1.8 million.
| (US$ millions) | Q2 2015 | Q2 2014 | % growth | % constant currency |
| Revenue | $1,385.0 | $1,410.5 | -1.8% | 3.9% |
| Gross profit | $222.3 | $228.1 | -2.5% | 2.9% |
| Gross margin | 16.1% | 16.2% | ||
| Net earnings | $6.8 | $2.8 | 148.6% |
Quote
“On a constant currency basis, we grew second quarter revenue and held our expenses relatively flat, dropping more than half of our gross profit growth to the bottom line,” said President and CEO Carl Camden. “Last year's investments in PT and OCG are yielding results, and we are executing a strategy that clearly aligns with market trends and customer needs.”
Revenue by segment
| (US$ millions) | Q2 2015 | Q2 2014 | % growth | % constant currency |
| Americas Commercial | $651.3 | $661.1 | -1.5% | 0.5% |
| Americas Professional & Technical | $246.2 | $244.2 | 0.8% | 1.2% |
| EMEA Commerical | $195.7 | $237.0 | -17.4% | -- |
| EMEA Professional & Technical | $42.9 | $49.7 | -13.6% | 4.5% |
| APAC Commerical | $90.3 | $86.5 | 4.3% | 17.7% |
| APAC Professional & Technical | $10.3 | $10.0 | 3.5% | 17.8% |
| OCG* | $165.0 | $137.9 | 19.7% | 21.6% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) includes recruitment process outsourcing (RPO), contingent workforce outsourcing (CWO), business process outsourcing (BPO), payroll process outsourcing (PPO), executive placement and outplacement.
Revenue by geography
| (US$ millions) | Q2 2015 | Q2 2014 | % growth | % constant currency |
| Americas | ||||
| United States | $923.6 | $888.3 | 4.0% | 4.0% |
| Canada | $41.6 | $49.6 | -16.0% | -5.5% |
| Mexico | $32.0 | $34.6 | -7.9% | 8.5% |
| Puerto Rico | $26.6 | $27.6 | -3.7% | -3.7% |
| Brazil | $9.9 | $13.7 | -27.8% | -1.5% |
| Europe, Middle East and Africa | ||||
| France | $60.9 | $69.3 | -12.1% | 9.0% |
| Switzerland | $54.6 | $66.7 | -18.3% | -13.4% |
| Portugal | $33.9 | $32.5 | 4.2% | 29.9% |
| United Kingdom | $27.1 | $28.4 | -4.3% | 5.2% |
| Russia | $22.2 | $32.8 | -32.3% | 1.7% |
| Germany | $14.3 | $16.5 | -13.3% | 7.5% |
| Italy | $13.0 | $16.6 | -21.8% | -3.3% |
| Norway | $10.0 | $14.4 | -31.0% | -10.8% |
| Other EMEA | $10.3 | $18.0 | -42.9% | -29.3% |
| Asia Pacific | ||||
| Singapore | $33.0 | $31.1 | 6.3% | 14.0% |
| Australia | $32.9 | $30.0 | 9.5% | 31.3% |
| Malaysia | $15.9 | $16.8 | -5.1% | 7.2% |
| New Zealand | $10.3 | $13.2 | -21.9% | -8.3% |
| Other Asia Pacific | $12.9 | $10.4 | 24.3% | 33.1% |
Gross margin by segment
| Q2 2015 | Q2 2014 | |
| Americas Commercial | 14.7% | 14.6% |
| Americas Professional & Technical | 17.1% | 16.0% |
| EMEA Commerical | 13.7% | 14.6% |
| EMEA Professional & Technical | 21.2% | 22.6% |
| APAC Commerical | 12.4% | 13.5% |
| APAC Professional & Technical | 26.4% | 33.2% |
| OCG* | 21.6% | 23.9% |
*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 0.88% to $14.60 in early afternoon trading today. The company had a market cap of $550.88 million, according to Yahoo!