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View All NewsWorld – Kelly’s Q2 revenue rises excluding APAC, fastest growth in Europe
Kelly Services Inc.’s (NASD: KELYA) second-quarter revenue rose 4% when adjusted for the transfer of its Asia Pacific joint venture in the third quarter of 2016.
Growth was fastest in Europe, the Middle East and Africa where revenue rose 9% on a constant currency basis.
Countries with the fastest growth included France, Russia and Ireland. On the other hand, revenue in Germany fell 4% on a constant currency basis, UK revenue rose 1% in constant currency and Swiss revenue was flat. US revenue rose 4%, and revenue in the company’s Americas segment overall also rose 4%.
| (USD millions) | Q2 2017 | Q2 2016 | Change | Constant Currency |
| Revenue | 1,333.6 | 1,375.5 | -3.1% | -3% |
| Gross Profit | 228.8 | 230.5 | -0.7% | -0.4% |
| Gross Margin | 17.2% | 16.8% | 0.4 | N/A |
| Net Earnings | 18.7 | 8.9 | 110.0% | N/A |
Revenue in Global Talent Solutions — includes the company’s recruitment process outsourcing, contingent workforce outsourcing, business process outsourcing and other services — revenue rose 0.2% on a constant currency basis.Net earnings jumped 53.3%; however, the second quarter of last year include restructuring charges of USD 3.4 million.
“It was a successful quarter that confirmed our strategic direction and continued Kelly’s forward momentum in the market,” said President and CEO George Corona. “Our performance demonstrates our sustained ability to grow the top line, operate more efficiently, and deliver solid returns to our shareholders — all while continuing to invest in the future.”
Revenue by segment was as follows:
| (USD millions) | Q2 2017 | Q2 2016 | Change | Constant Currency |
| Americas Staffing | 575.6 | 542.4 | 6.1% | 6% |
| Global Talent Solutions | 505.5 | 500.6 | 1.0% | 1% |
| International Staffing | 256.8 | 337.3 | -23.9 | -23 |
Gross Margin by segment
| Q2 2017 | Q2 2016 | |
| Americas Staffing | 18.0% | 17.9% |
| Global Talent Solutions | 17.5% | 17.1% |
| International Staffing | 14.3% | 14.4% |
Revenue by geography
| (USD millions) | Q2 2017 | Q2 2016 | Change | Constant Currency |
| America | ||||
| US | 970.1 | 930.8 | 4.2% | 4% |
| Canada | 34.6 | 35.8 | -3.1% | 1% |
| Mexico | 28.3 | 25.4 | 11.0% | 13% |
| Puerto Rico | 17.6 | 22.5 | -21.9% | -22% |
| Brazil | 12.7 | 10.2 | 23.8% | 9% |
| EMEA | ||||
| France | 68.3 | 61.3 | 11.5% | 14% |
| Switzerland | 53.9 | 54.6 | -1.2% | ??? |
| Portugal | 41.7 | 38.7 | 7.4% | 10% |
| Russia | 24.0 | 16.6 | 44.4% | 26% |
| UK | 20.8 | 23.1 | -9.7% | 1% |
| Italy | 15.7 | 15.1 | 3.9% | 6% |
| Germany | 14.6 | 15.7 | -6.1% | -4% |
| Norway | 8.4 | 8.4 | -1.3% | 2% |
| Ireland | 7.4 | 5.4 | 36.0% | 39% |
| Other EMEA | 11.0 | 9.4 | 17.4% | 20% |
| Asia Pacific | ||||
| Total APAC | 4.5 | 102.5 | -95.6% | -96% |
Kelly Services forecasts revenue will rise 4% to 5% in the third-quarter of 2017.
On Wednesday, Kelly Services shares closed at USD 22.74, up 3.18% on the day and 7.94% below its 52-week high of USD 24.70, set on 18 May 2017. Based on its current share price the company has a market value of USD 871.56 million.