Second-quarter revenue at Kelly Services Inc. (NASD: KELYA) fell 2.8 percent to $1.37 billion from $1.41 billion in the year-ago period. However, gross margin improved to 16.3 percent in the second quarter from 15.8 percent in the year-ago quarter.

Second-quarter U.S. revenue rose 1.3 percent on a year-over-year basis to $874.4 million. Revenue in Canada rose 0.8 percent, or 5.2 percent on a constant-currency basis, to $62.0 million.

Kelly posted second-quarter revenue of $14.4 million in Brazil; it reported no Brazilian revenue in the second quarter of last year. Kelly acquired the stock of Tradição Planejamento e Tecnologia de Serviços S.A. and Tradição Tecnologia e Serviços Ltda., a national service provider in Brazil, for $6.6 million in cash during the fourth quarter of last year, according to a filing with the U.S. Securities and Exchange Commission.

Second-quarter revenue in Kelly’s Europe, Middle East and Africa region fell 15.6 percent to $262.5 million; it was down 7.0 percent in constant currency. Asia Pacific revenue fell 14.8 percent (11.2 percent in constant currency) to $101.1 million in the second quarter.

Revenue in Kelly’s outsourcing and consulting group rose 23.4 percent in the second quarter to $91.4 million. KellyOCG includes recruitment process outsourcing, managed services, independent contractor compliance, executive search, outplacement and other services.

Kelly second-quarter net income fell 19.9 percent on a year-over-year basis to $15.0 million.

Kelly Services Inc. (NASD: KELYA)
 For the second quarter ended July 1, 2012, compared with the same period in 2011.
 Revenue: $1.37 billion, -2.8 percent
 Net income: $15.0 million, -19.9 percent