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View All NewsKelly Services revenue rises 3%
Kelly Services Inc. (NASD: KELYA), the fifth-largest U.S. staffing firm and seventh-largest global staffing firm, reported revenue rose 3.2 percent in the second quarter to $1.34 billion.
Revenue in Kelly’s Outsourcing and Consulting Group rose 16.5 percent, or 16.8 percent in constant currency, to $137.9 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.
Gross margin improved to 16.2 percent in the second quarter from 16.1 percent in the year-ago quarter.
Net earnings fell 72.6 percent to $2.8 million. The second quarter included restructuring charges of $1.8 million. The second quarter of 2013 included impairment charges of $1.7 million and restructuring charges of $800,000.
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“Our second quarter results aligned with our expectations, and we’re pleased with how we’ve executed our strategy in the first half of 2014,” said President and CEO Carl Camden. “Our investments in OCG continue to yield double-digit revenue, GP, and earnings growth, confirming this segment is meeting the market’s increased demand for higher-margin talent supply chain solutions. We’re also making the aggressive investments needed to drive growth in specialty staffing across our local U.S. markets, while continuing to invest in the success of our large account base.”
Revenue
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | % constant currency | |
| Revenue | $1,410.5 | $1,366.9 | 3.2% | 3.2% |
Revenue by segment
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | % constant currency | |
| Americas Commercial | $661.1 | $648.8 | 1.9% | 2.8% |
| Americas Professional & Technical | $244.2 | $251.2 | -2.8% | -2.6% |
| EMEA Commerical | $237.0 | $219.8 | 7.8% | 4.6% |
| EMEA Professional & Technical | $49.7 | $43.1 | 15.1% | 10.3% |
| APAC Commerical | $86.5 | $87.7 | -1.3% | 1.5% |
| APAC Professional & Technical | $10.0 | $10.0 | -0.2% | 3.9% |
| OCG* | $137.9 | $118.3 | 16.5% | 16.8% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) include contingent workforce outsourcing, business process outsourcing, recruitment process outsourcing, independent contractor solutions, payroll process outsourcing, career transition and executive coaching and development, and executive search.
Revenue by geography
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | % constant currency | |
| Americas | ||||
| United States | $888.3 | $864.3 | 2.8% | 2.8% |
| Canada | $49.6 | $55.0 | -9.8% | -3.9% |
| Mexico | $34.6 | $35.9 | -3.4% | 0.5% |
| Puerto Rico | $27.6 | $26.1 | 5.8% | 5.8% |
| Brazil | $13.7 | $13.4 | 1.9% | 14.4% |
| Europe, Middle East and Africa | ||||
| France | $69.3 | $62.3 | 11.2% | 5.9% |
| Switzerland | $66.7 | $63.6 | 5.0% | -0.9% |
| Russia | $32.8 | $34.6 | -5.1% | 4.8% |
| Portugal | $32.5 | $21.1 | 53.7% | 46.5% |
| United Kingdom | $28.4 | $25.8 | 10.1% | 0.5% |
| Italy | $16.6 | $14.7 | 12.8% | 7.5% |
| Germany | $16.5 | $15.9 | 4.3% | -0.7% |
| Norway | $14.4 | $15.4 | -6.2% | -3.7% |
| Other Europe, Middle East and Africa | $18.0 | $17.3 | 3.7% | -0.4% |
| Asia Pacific | ||||
| Singapore | $31.1 | $28.0 | 11.0% | 11.2% |
| Australia | $30.0 | $35.3 | -15.0% | -9.8% |
| Malaysia | $16.8 | $17.2 | -2.5% | 2.8% |
| New Zealand | $13.2 | $12.0 | 10.1% | 5.0% |
| Other Asia Pacific | $10.4 | $9.0 | 15.1% | 25.9% |
Gross margin
| Q2 2014 | Q2 2013 | |
| Gross margin | 16.2% | 16.1% |
Gross margin by segment
| Q2 2014 | Q2 2013 | |
| Americas Commercial | 14.6% | 14.5% |
| Americas Professional & Technical | 16.0% | 15.5% |
| EMEA Commerical | 14.6% | 15.4% |
| EMEA Professional & Technical | 22.6% | 24.4% |
| APAC Commerical | 13.5% | 14.3% |
| APAC Professional & Technical | 33.2% | 37.4% |
| OCG* | 23.9% | 23.4% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) include contingent workforce outsourcing, business process outsourcing, recruitment process outsourcing, independent contractor solutions, payroll process outsourcing, career transition and executive coaching and development, and executive search.
Net earnings
| Q2 2014 ($millions) | Q2 2013 ($millions) | % growth | |
| Net earnings | $2.8 | $10.0 | -72.6% |
Share price and market cap
Kelly Services shares fell 1.49 percent to $15.90 in early afternoon trading. The Troy, Mich.-based staffing firm had a market cap of $595.07 million, according to Yahoo!