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View All NewsKelly Services revenue rises 1%, gross margin improves
Kelly Services Inc. (NASD: KELYA), one of the world’s largest staffing firms, reported revenue rose 1.2 percent in the first quarter to $1.33 billion. Americas commercial revenue, Kelly’s largest single segment, fell 3.9 percent to $613.2 million.
However, first-quarter revenue in Kelly’s Outsourcing and Consulting Group (OCG)* rose 25.1 percent to $134.4 million.
Gross margin improved to 16.7 percent in the first quarter from 16.5 percent in the year-ago quarter.
Net earnings fell 80.5 percent to $2.5 million.
*OCG includes contingent workforce outsourcing, business process outsourcing, recruitment process outsourcing, independent contractor solutions, payroll process outsourcing, career transition and executive coaching and development, and executive search.
Quote
Although confidence is returning among many U.S. companies, that isn't necessarily translating into strong job growth, Kelly President and CEO Carl Camden noted. “Rather than waiting for the job market to change significantly in 2014, Kelly is taking the necessary steps to secure our position in the specialty staffing and outsourcing and consulting markets. In particular, we continue to see strong demand and revenue growth in the talent supply chain management approach delivered through our OCG segment.”
Revenue
Q1 2014 ($millions) | Q1 2013 ($millions) | % growth | |
Revenue | $1,330.8 | $1,314.8 | 1.2% |
Revenue by segment
Q1 2014 ($millions) | Q1 2013 ($millions) | % growth | % constant currency | |
Americas Commercial | $613.2 | $638.3 | -3.9% | -2.7% |
Americas Professional & Technical | $236.4 | $242.6 | -2.6% | -2.4% |
EMEA Commerical | $221.9 | $201.0 | 10.4% | 9.6% |
EMEA Professional & Technical | $47.7 | $43.5 | 9.6% | 6.9% |
APAC Commerical | $83.0 | $81.5 | 1.8% | 9.3% |
APAC Professional & Technical | $8.6 | $10.2 | -15.3% | -7.2% |
OCG* | $134.4 | $107.4 | 25.1% | 25.9% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) include contingent workforce outsourcing, business process outsourcing, recruitment process outsourcing, independent contractor solutions, payroll process outsourcing, career transition and executive coaching and development, and executive search. |
Revenue by geography
Q1 2014 ($millions) | Q1 2013 ($millions) | % growth | % constant currency | |
Americas | ||||
United States | $839.9 | $839.5 | 0.0% | 0.0% |
Canada | $46.7 | $56.0 | -16.6% | -8.9% |
Mexico | $30.7 | $30.4 | 0.8% | 5.6% |
Puerto Rico | $25.1 | $23.1 | 8.5% | 8.5% |
Brazil | $15.9 | $18.5 | -13.9% | 0.0% |
Europe, Middle East and Africa | ||||
France | $62.8 | $57.3 | 9.7% | 5.6% |
Switzerland | $62.3 | $53.4 | 16.6% | 11.8% |
Russia | $34.9 | $34.5 | 1.2% | 16.6% |
United Kingdom | $27.8 | $25.8 | 7.7% | 1.0% |
Portugal | $26.6 | $17.8 | 49.8% | 43.6% |
Germany | $16.7 | $16.0 | 4.2% | 0.3% |
Italy | $14.9 | $15.1 | -1.3% | -5.0% |
Norway | $14.4 | $14.8 | -3.1% | 4.7% |
Other Europe, Middle East and Africa | $17.1 | $17.4 | -1.6% | -4.6% |
Asia Pacific | ||||
Singapore | $30.3 | $26.1 | 16.1% | 19.0% |
Australia | $26.5 | $32.7 | -19.0% | -6.3% |
Malaysia | $16.5 | $16.7 | -0.7% | 6.2% |
New Zealand | $12.3 | $11.5 | 7.4% | 7.2% |
Other Asia Pacific | $9.4 | $8.2 | 14.7% | 31.4% |
Gross margin
Q1 2014 | Q1 2013 | |
Gross margin | 16.7% | 16.5% |
Gross margin by segment
Q1 2014 | Q1 2013 | |
Americas Commercial | 15.0% | 14.7% |
Americas Professional & Technical | 16.8% | 15.8% |
EMEA Commerical | 14.8% | 15.5% |
EMEA Professional & Technical | 23.3% | 24.6% |
APAC Commerical | 14.8% | 14.2% |
APAC Professional & Technical | 32.0% | 32.5% |
OCG* | 24.3% | 27.2% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) include contingent workforce outsourcing, business process outsourcing, recruitment process outsourcing, independent contractor solutions, payroll process outsourcing, career transition and executive coaching and development, and executive search. |
Net earnings
Q1 2014 ($millions) | Q1 2013 ($millions) | % growth | |
Net earnings | $2.5 | $12.9 | -80.5% |
Share price and market cap
Kelly Services shares fell 6.24 percent to $19.55 in early afternoon trading. The Troy, Mich.-based staffing firm had a market cap of $731.51 million, according to Yahoo!