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Kelly net income falls 30.9%

April 22 2008

First-quarter profit at Kelly Services Inc. (NASD: KELYA) fell 30.9% amid the continuing slowdown in the U.S. economy.

The Troy MI-based staffing giant posted first-quarter net income of $8.2 million, down from $11.9 million in the first quarter of 2007.

First-quarter revenue rose 2.8% to $1.39 billion, compared with $1.35 billion in the same period last year. However, the company said revenue fell 1.2% excluding the effects of foreign currencies.

Gross margin increased to 18.0% from 17.0%.

U.S. first-quarter revenue fell 3.7% to $820.7 million from $852.3 million in the first quarter of 2007.

Kelly's Americas first-quarter commercial staffing revenue fell 6.4% to $639.9 million. Its Americas professional revenue, however, rose 2.0% to $232.2 million. Kelly's Americas division includes the U.S., Canada, Mexico, and Puerto Rico.

Revenue rose in other parts of the world for Kelly, up 11.3% in Europe and up 40.8% in the Asia Pacific region. In the U.K., though, the company said revenue fell 11.0% to $104.9 million, or down 12.1% on a constant currency basis. The U.K. is the company's largest single overseas market in terms of revenue.

Kelly Services Inc. (NASD: KELYA)
For the first quarter ended March 30, 2008, compared with the same period in 2007.
Revenue: $1.39 billion, +2.8%
Net income: $8.2 million, -30.9%

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