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Kelly revenue roughly flat but OCG up 20%

August 07 2013

Kelly Services Inc. (NASD: KELYA) reported second-quarter revenue edged up 0.1 percent to $1.37 billion from the second quarter of last year but exceeded Wall Street analysts average estimate of $1.36 billion.

In the Americas, Kelly’s professional and technical staffing revenue fell 1.2 percent in constant currency to $259.6 million, and commercial staffing revenue fell 3.1 percent to $648.8 million in the second quarter.

“We continue to experience soft revenue demand in the Americas as customers remain cautious about the economic environment,” President and CEO Carl Camden said in a conference call with investors.

Professional technical and commercial revenue in Europe, the Middle East and Africa rose 2.6 percent in constant currency to $262.9 million in the second quarter. Asia Pacific professional/technical and commercial revenue edged up 0.5 percent in constant currency in the second quarter to $97.7 million.

However, global OCG revenue rose 20.3 percent in constant currency to $109.9 million. OCG includes contingent workforce outsourcing (managed service solutions), business process outsourcing, recruitment process outsourcing, independent contractor compliance and other services.

Kelly’s total U.S. revenue fell 1.2 percent year-over-year to $864.3 million.

Kelly’s global second-quarter gross margin edged down to 16.1 percent from 16.3 in the year-ago quarter.

Global second-quarter net income fell 33.2 percent to $10.0 million from $15.0 million in last year’s second quarter. Results include impairment charges of $1.7 million and restructuring charges of $800,000.

Kelly Services Inc. (NASD: KELYA)
For the second quarter ended June 30, 2013, compared with the same period in the previous year. 
Revenue: $1.37 billion, +0.1 percent 
Net income: $10.0 million, -33.2 percent


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