Daily News
View All NewsKelly’s education business is bright spot in challenging Q4
The uncertain economy continued to affect demand for staffing in the fourth quarter, Kelly Services Inc. (KELYA, KELYB) reported today. Fourth-quarter revenue fell 1.3% in constant currency at the Troy, Michigan-headquartered staffing giant. However, Kelly’s education staffing business was a bright spot, with revenue jumping 27.1% year over year.
“In the fourth quarter, we captured steady demand in education and most of our outcome-based specialties in [professional and industrial], which continue to demonstrate resilience amid a challenging operating environment,” President and CEO Peter Quigley said.
Kelly’s fourth-quarter earnings report includes international operations in Europe, which the company sold to Gi Group Holdings S.p.A. in a deal that closed on 2 January. The sale involved Kelly’s European staffing business only; the company continues to provide its MSP, RPO and functional service provider offerings in Europe.
| (USD millions) | Q4 2023 | Q4 2022 | Change | Constant Currency % |
| Revenue | 1,232.2 | 1,233.8 | -0.1% | -1.3% |
| Gross Profit | 238.2 | 250.2 | -4.7% | -5.7% |
| Gross Margin | 19.3% | 20.3% | - | - |
| Net earnings/Loss | 11.4 | -0.9 | - | - |
Revenue by segment
| (USD millions) | Q4 2023 | Q4 2022 | Change | Constant Currency % |
| Professional & industrial | 351.8 | 397.5 | -11.5% | -11.5% |
| Science, engineering & technology | 287.3 | 302.7 | -5.1% | -5.2% |
| Education | 258.0 | 203.0 | 27.1% | 27.1% |
| Outsourcing & consulting | 112.3 | 116.0 | -3.1% | -3.3% |
| International | 227.3 | 216.3 | 5.1% | -1.5% |
Revenue fell 11.5% in Kelly’s professional and industrial segment, which includes staffing in industrial, contact centre and office/clerical. Revenue also fell 5.2% in constant currency in its science, engineering and technology segment, which includes staffing in engineering, science and clinical, technology and telecom.
Kelly’s outsourcing and consulting segment — which includes MSP, RPO, payroll process outsourcing and consulting — saw revenue fall 3.3% in constant currency in the fourth quarter.
Perm placement revenue decreased 38.9% on a constant currency basis to $11.7 million.
Quigley noted the sale of its European operations opened up $100 million of capital.
Revenue by geography
| (USD millions) | Q4 2023 | Q4 2022 | Change | Constant Currency % |
| Americas | ||||
| United States | 908.7 | 925.0 | -1.7% | -1.7 |
| Canada | 47.6 | 45.5 | 4.6% | 5.1% |
| Puerto Rico | 25.9 | 27.6 | -6.2% | -6.2% |
| Mexico | 20.6 | 14.1 | 46.9% | 30.9% |
| Europe | ||||
| Switzerland | 58.3 | 57.3 | 1.8% | -6.2% |
| France | 49.4 | 48.6 | 1.4% | -3.7% |
| Portugal | 47.1 | 43.7 | 7.6% | 2.2% |
| Italy | 14.4 | 15.0 | -3.8% | -8.6% |
| Other | 49.4 | 47.5 | 4.1% | -1.2% |
| Asia Pacific | 10.8 | 9.5 | 12.9% | 14.9% |
Full-year results
| (USD millions) | FY2023 | FY 2022 | Change | Constant Currency % |
| Revenue | 4,835.7 | 4,965.4 | -2.6% | -3.2% |
| Gross Profit | 961.4 | 1,011.8 | -5.0% | -5.3% |
| Gross Margin | 19.9% | 20.4% | - | - |
| Net earnings/Loss | 36.4 | -62.5 | - | - |
Last week Persol (2181: JP), the Japanese staffing firm, reported revenue for the nine months ended 31 December 2023 of JPY 902.06 billion (USD 6.57 billion), up 7.2%. The results included revenue in Persol’s joint venture with Kelly, PersolKelly, which increased by 11.4% over the year.
Kelly Services set a new 52-week high during today's trading session when it reached $23.27. Over this period, the share price is up 41.55%. The company’s shares closed at $23.03, up 7.32% on the day. The company has a market cap of $734.22 million.