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View All NewsKelly Services revenue rises in Q4
Fourth-quarter revenue at Kelly Services Inc. (NASD: KELYA) rose 7.3% on a constant currency basis and 2.6% on a reported basis.
US revenue rose 6.9% on a reported basis; the US is the company’s largest single market with revenue of $998.8 million in the fourth quarter. Revenue from Mexico rose 16.3% on a constant currency basis, but Canadian revenue fell 11.0% in constant currency.
European revenue rose 11.3% and Asia Pacific revenue rose 11.0% — both in constant currency.
| (US$ millions) | Q4 2015 | Q4 2014 | % change | % constant currency |
| Revenue | $1,461.6 | $1,425.0 | 2.6% | 7.3% |
| Gross profit | $249.5 | $232.6 | 7.2% | 11.7% |
| Gross margin | 17.1% | 16.3% | ||
| Net earnings | $34.2 | $17.0 | 99.5% |
The fourth-quarter of 2014 included restructuring charges of $6.2 million.
Quote
“Kelly’s fourth quarter performance capped off a year of solid earnings growth, and we are very pleased with our strong operating leverage and strategic execution throughout 2015,” said President and CEO Carl Camden. “All told, excluding the 2014 restructuring charges, we dropped nearly 70% of our full-year constant currency GP dollar growth to the bottom line. Kelly has entered 2016 as a more efficient organization keenly focused on profitability … and we expect our investments in [professional technical] and OCG to continue yielding results as we expand Kelly’s role as a trusted talent advisor to our clients worldwide.”
Revenue by segment
| (US$ millions) | Q4 2015 | Q4 2014 | % change | % constant currency |
| Americas Commercial | $696.1 | $694.5 | 0.2% | 2.7% |
| Americas Professional & Technical | $250.1 | $232.9 | 7.4% | 7.8% |
| EMEA Commerical | $200.5 | $204.5 | -2.0% | 10.8% |
| EMEA Professional & Technical | $44.7 | $44.8 | -0.3% | 12.3% |
| APAC Commerical | $88.1 | $91.3 | -3.5% | 11.3% |
| APAC Professional & Technical | $9.8 | $11.2 | -12.7% | 0.6% |
| OCG* | $187.5 | $164.7 | 13.8% | 15.6% |
Revenue by geography
| (US$ millions) | Q4 2015 | Q4 2014 | % change | % constant currency |
| Americas | ||||
| United States | $998.8 | $933.9 | 6.9% | 6.9% |
| Canada | $38.0 | $50.0 | -24.0% | -11.0% |
| Mexico | $35.3 | $36.7 | -3.9% | 16.3% |
| Puerto Rico | $24.7 | $26.6 | -7.1% | -7.1% |
| Brazil | $8.7 | $13.9 | -37.5% | -1.7% |
| Europe, Middle East and Africa | ||||
| France | $65.6 | $66.4 | -1.1% | 12.8% |
| Switzerland | $55.5 | $57.8 | -4.0% | -1.3% |
| Portugal | $33.8 | $32.4 | 4.2% | 18.9% |
| United Kingdom | $26.7 | $23.2 | 15.1% | 20.3% |
| Russia | $18.2 | $20.9 | -12.9% | 22.2% |
| Germany | $16.2 | $16.8 | -4.0% | 9.5% |
| Italy | $14.5 | $13.9 | 3.9% | 18.7% |
| Norway | $9.7 | $11.9 | -18.1% | 2.1% |
| Other EMEA | $13.0 | $13.6 | -4.4% | 9.4% |
| Asia Pacific | ||||
| Singapore | $33.0 | $32.7 | 0.7% | 9.5% |
| Australia | $31.1 | $32.6 | -4.6% | 13.5% |
| Malaysia | $14.1 | $16.2 | -12.7% | 11.4% |
| New Zealand | $11.2 | $13.2 | -14.5% | 0.4% |
| Other Asia Pacific | $13.5 | $12.3 | 9.2% | 19.5% |
Gross margin by segment
| Q4 2015 | Q4 2014 | |
| Americas Commercial | 15.8% | 14.4% |
| Americas Professional & Technical | 17.2% | 16.1% |
| EMEA Commerical | 13.7% | 14.4% |
| EMEA Professional & Technical | 21.0% | 21.7% |
| APAC Commerical | 11.8% | 12.9% |
| APAC Professional & Technical | 24.5% | 29.9% |
| OCG* | 25.6% | 25.6% |
*Services in KellyOCG includes recruitment process outsourcing, contingent workforce outsourcing, business process outsourcing, payroll process outsourcing, executive placement and outplacement.
Full-year results
| (US$ millions) | 2015 | 2014 | % change | % constant currency |
| Revenue | $5,518.2 | $5,562.7 | -0.8% | 4.7% |
| Gross profit | $920.3 | $908.4 | 1.3% | 6.4% |
| Gross margin | 16.7% | 16.3% | ||
| Net earnings | $53.8 | $23.7 | 126.9% |
Share price and market cap
Kelly Services shares rose 0.97% to $16.46 in early afternoon trading today. The company had a market cap of $625.18 million, according to Yahoo!