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Kelly revenue falls 24.9%

April 28, 2009

First-quarter revenue fell 24.9% at Kelly Services Inc. (NASD: KELYA) to $1.04 billion from $1.39 billion in the year-ago quarter. Revenue was down 19% on a constant currency basis.

The Troy MI-based staffing firm reported declines in revenue across most of the geographic regions. In the U.S., first-quarter revenue fell 21.4% year-over-year to $644.8 million.

The biggest decline was in Italy, where revenue fell 46.5% to $18.9 million year-over-year. The decrease was 38.7% on a constant currency basis.

In the United Kingdom, first-quarter revenue fell 40.4% year-over-year to $62.6 million. Kelly also said it took a $5.4 million restructuring charge in the U.K. as part of its plan to close offices in that country.

Americas commercial staffing revenue fell 24.9% year-over-year, and Americas professional and technical revenue fell 17.3%. The Americas include the U.S., Canada, Mexico and Puerto Rico.

Kelly posted a first-quarter net loss of $15.5 million compared with net income of $8.2 million in the first quarter of 2008.

Kelly Services Inc. (NASD: KELYA)
For the first quarter ended March 29, 2009, compared with the same period in 2008.
Revenue: $1.04 billion, -24.9%
Net loss: $15.5 million vs. net income of $8.2 million